Using Automation​ to Trade Currency Pairs for Maximum Profit

Michael S. Young |

New advanced technology is helping Forex traders utilize multiple currency pairs to generate maximum profits. Indeed, these advanced algorithmic trading systems are based on mathematical models that optimize timing, price, quantity and risk. Utilizing the proper technology or proper managed account teams, provides the ability to achieve more wins and larger profits upon exit.

To start, it is essential to understand how currency pairs work. In the Forex market, the value of one currency is determined by its relationship to another currency. The first currency is called the base currency and the second currency is the quote currency. Traders who purchase a unit of the base currency use the quote currency for the transaction and the currency pair is considered as a single instrument.

Therefore, when evaluating whether to enroll with a Professional Forex trading manager, utilizing automated systems trading, it is important to look at the track record, risk mitigation strategies and the number of currency pairs that are being traded systematically. Mediatrix Capital, for example, has expanded its Algorithmic Trading System to include 28 currency pairs that have the ability to trade concurrently, but only when market directional probabilities underwritten by the algorithms are at a desirable level of probability. Having so many pairs to discriminate against on a moment-by-moment basis allows superior discernment of trade executions to the highest probability of win in the market at any given moment. Because it would be impossible to trade 28 pairs concurrently while sitting at a computer screen manually trading, high speeds systems broaden the opportunity for profit, and lessen risk taking.

Another way of evaluating trading systems is to understand the value of a system that trades multiple currency pairs versus one or two. Sophisticated systems are able to maximize the probability of achieving optimal returns for many factors. Let’s look at what the ability of trading multiple currency pairs can do. Trading 28 pairs vs. a couple of pairs enables traders to benefit from any one or more of 28 pairs that moment by moment signal the highest probability of favorable market direction for a trade.



Statistically, there is a greater probability of achieving maximum profits while using less equity, when the field is so much broader to select trades from. Because the Mediatrix system selects the pair(s) with the highest probability of success mathematically, and moment by moment, the trader/client wins more frequently and effectively mitigates risk as a result. The more pair options that any algorithm(s) can underwrite, the higher the probability of success will be, so long as the currency pairs represent currencies with liquid markets and with substantial enough market volumes, that with any given trade, a “fill” can be achieved.

In addition to the number of currency pairs traded, another consideration should be how the system evaluates market momentum. Since multiple events line up in real time, timing a trade correctly is critical. It is important to get in at the start of a short-term cycle and not to jump in mid-cycle or when momentum is tapering off. Similarly, when the market is relatively flat, it is not a good time to trade, as without any probability of direction, trading takes the face of gambling, and any responsible trader understands that the first rule of success is preservation of capital above the desire for gains. Again, access to trading multiple currency pairs simultaneously provides more options, so traders do not risk trading inactive markets to attempt to make a profit. When the market moves, there will be multiple high probability trades to evaluate, and the more pairs that are within an algorithm, the better the breadth of opportunity.

In conclusion, traders can best sharpen their pencils by utilizing multiple currency pairs in a strong, liquid market with an expert algorithmic trading system in place. To achieve this, some traders will utilize signal services, other investors will utilize professional managed account companies like Mediatrix Capital, which also provides professional signal services to retail traders. Whatever you do, remember: capital preservation is the key to success in trading. Unnecessary risk taking will always end in the same narrative -- re-capitalizing your trade account; if you can.

For further information, visit www.mediatrixcapital.com or call 1-800-905-1006.

Disclaimer:

In no event should the content of this material be construed as an advertisement, express or an implied promise, guarantee or implication by or from Mediatrix Capital Inc. (MC) or any of its partner or subsidiary companies. This is not an attempt to sell or solicit any security and should not be taken as such. The content of this document is for informational purposes only. Potential Accredited Investors are advised to carefully read the Disclosure Documents to determine whether a managed investment in MC is consistent with their financial situations and investment objectives. Past results are no guarantee of future performance. Mediatrix Capital is a foreign corporation based in Sandyport Bahamas, and does not operate within the United States.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

WRIT Media Group Inc

WRIT Media Group Inc produces films, television programs and similar entertainment programs for various media formats.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…