Viewing entries tagged
Forex robots

What are the new ESMA rules for traders and how it will impact your trading?

Comment

What are the new ESMA rules for traders and how it will impact your trading?


By: Alexander Vladimirov

By: Alexander Vladimirov


This March, the European Securities and Markets Authority (ESMA) announced its intentions of imposing new rules regarding the trading industry. The new rules are likely to come into effect from late June/early July.

What are the restrictions?

eur.jpg

     ESMA will impose five key measures:

  • An imposition of leverage limits – max 1:30

  • A Margin Close Out (MCO) rule of 50% on a per account basis

  • A negative balance protection on a per account basis – broker still has to pay the liquidity provider though, but you won’t have to pay the broker

  • A restriction on incentivisation of trading

  • A standardised risk warning

  • Prohibits the marketing, distribution and sale of binary options

 

It’s not the end of trading industry, but rather the beginning…

Regulation is something that can either hurt an industry or help it. In most cases, it hurts it. In this case it’s being used well, as all new rules actually favor the trader. The amount of people who go into forex trading not knowing anything about the skill or industry is tremendous. These regulations will, at least, offset their losses somewhat and offer additional stability to the trading account of the retail client. The amount of noise created behind the regulations will also cause traders to seek out more valid information, and thus be more aware of what they are getting into. The new rules are a good step forward to reducing the bad rep this industry has. 

Here’s an example of the margin requirements with 1:100 (A) and 1:30 (B) leverage: 

A. Trading 3 lots of EUR/USD using 1:100 leverage with an account denominated in USD:

Trade size: 300,000

Account currency exchange rate: 1.200

Required Margin: 300,000 / 100 * 1.200 = $3,600

 

B. Trading 3 lots of EUR/USD using 1:30 leverage with an account denominated in USD:

Trade size: 300,000

Account currency exchange rate: 1.200

Required Margin: 300,000 / 30 * 1.200 = $12,000

With a $10,000 account you won’t be able to place a 3 lot trade with the new rules on leverage.  Your highest trade size would be 2.5 lots in this example.

Nevertheless, if you want to take higher risk you still have more than enough opportunity to do so. Placing a 2.5 lot trade with a $10,000 balance would still be deemed quite risky in the eyes of Evestin Forex.

But I want my leverage!

 If you still can’t get around having to deal with the new rules on CFD’s, there is still an option for you. If you have enough experience in the trading industry, you may opt to sidestep the new regulations by becoming an ‘'elective professional'’. This will allow you to receive the old leverage amounts. To do this, you would need to pass a qualitative test as well as a quantitative test. Check with your broker for extra information.

Evestin Forex – where do we stand?

satoshi.png

We welcome this change as it gets rid of high risk strategies that just bring a bad name to robot trading. At Evestin Forex we are known for our low-risk trading. We believe in patience and the long-term game when it comes to the market. The new rules will have no impact on our trading robots as we use small leverage, and no more than 2% risk per trade. If you want to know your trading will be in good hands and feel secure even after the changes take effect – register for a free 30-day trial and get your trading with Evestin Forex started! 

Comment

Comment

Great trade? Thank the robot that did it


Follow us on social media:


Automated trading is the wave of the future
— Ivo Luhse, currency trader, entrepreneur, developer of robotic trading systems.
Ivo Luhse trader

Ivo Luhse is Forex trader who started out, as so many traders do, as a discretionary trader. Now? He wouldn't even call himself a trader, despite the fact he makes his living trading. He describes himself as an asset manager with a number of employees. And every one of those employees is a robot.

Ivo's journey is one that all traders are going to have to make eventually. It's not a matter of embracing complexity, in fact, it's just the opposite. He uses simple manual trading systems but he lets the robots do the work. He just manages them and the money that they are using and making.
We all heard that you should treat trading as a business. But not many actually understand what it means.
He cites the analogy of a burger shop. He has bots flipping the burgers - he's the manager looking after the money and checking up occasionally that the bots are making the burgers properly. And with the new advances in machine learning soon different bots will be managers of the bots flipping the burgers.

There’s still time to get an early advantage – but move now.

Even a trader as sophisticated as Ivo hasn't been doing robotic trading that long. He started to build his robots in early 2015. After the birth of his daughter, he realised that he doesn't want to sit at the computer screen all day long and wanted to spend as much time as possible with the new family. So his started to build robots based on his manual trading strategies.  He currently has four bots working for him each with is own unique trading strategy. This approach lets Ivo diversify his trading portfolio and achieve consistency in any market phase.
In every market, traders are making the same journey and turning to automated trading to give them coverage and consistency that is very difficult to achieve as a human being.

It's extremely difficult for us not to hop from one strategy to another, particularly when we encounter trading difficulties and losses. But automated trading is far less emotional and can help you improve your profits by removing the heat from the trading scenario.

The whole market is moving this way and it's important to give yourself the benefits of an early advantage by getting involved now with automated trading using robots.
When you look at hedge funds vs quant funds. Technology driven quant funds are on a good run and are outperforming its discretionary counterparts. Quant funds are also the biggest hirers, but there are no jobs for discretionary traders. Funds are looking for the smart, analytical people right out of undergrad with strong math, computer science or engineering skills.
If computers can beat world champion chess players, shouldn't they be able to beat the traders on Wall Street?
Eventually, the time will come that no human investment manager will be able to beat the computer.

Ivo trusts the algorithms and strategies that are built into his automated trading robots. He has fully stopped his discretionary trading and has his sole focus on managing and developing automated systems.
But it took him some time to arrive at this point. At first, he found it difficult to let the robots do their job because it involved a loss of control - a bit like the business owner who takes on some employees but doesn't believe they can do the job as well as he can. Most traders will probably have the same problems to begin with and will need to move towards fully automated trading somewhat gradually.

It's clear that he moved towards robotic trading in a spirit of humility, learning what he needed to learn and wanting to move towards a mode of trading that was calmer and more rational. However, Ivo believes that in the next 20 years asset management of robotic traders is what will make money in the markets and that discretionary trading has no future.

Best forex robots

A different kind of trading day.

Traders like Ivo who are using automated trading systems check their robots 1 to 2 times a day to make sure that they are opening the trades correctly. Scanning charts, looking at indicators, fundamental analysis and all the other paraphernalia of traders have become a thing of the past – the software does it all.

Wall Street people learn nothing and forget everything.
— Benjamin Graham

With apologies to the revered Mr Graham, that may all be about to change. With machine learning, robots learn everything and forget nothing.
Already now Ivo uses testing robots that 24/7 scan the incoming price data and look for best settings for the current market conditions. While he still needs to manually input these settings for his trading robots, soon manager robots will be able to do this automatically from the data they receive from the tester robots and tracking robots.
A fully automated machine learning and trading process — trades taken by trading robots, settings set by manager robots, ongoing testing done by test robots and live trades monitored by tracking robots.

A huge wave of automation is coming.

This move towards automated trading is part of the new wave of intelligent robotics which will profoundly change the world of work and affect all jobs and professions where human intelligence is used to collect, synthesise, analyse and act on information. The changes will be dramatic and many people are simply unprepared for the scale of what is about to happen.
So far, most people's idea of a robot has been of a machine with limited intelligence that does something physical in response to a set of instructions. What we are now seeing are robots that inhabit the virtual or digital worlds and act autonomously using our money, and resources. We will allow them to take decisions and act for us in the future because the evidence will plainly show that they take better decisions than we do. They will teach our children, diagnose our illnesses, manage us at work.
Robots will become socially intelligent and will be networked into complex interactive social and work systems.
The current push is to develop sentient robots – those who do not merely have artificial intelligence but who have self-awareness, or consciousness. Which of course means, that they would be capable of loving or hating but also that they could be taught ethics and a sense of right and wrong.
in terms of trading robotics, one of the great advantages of robotic trading systems is that they are not subject to the emotions and pressures that afflict human traders and can lead to fear, greed, overconfidence and the classic "revenge trading" reaction to a sudden loss.
Speaking in MIT Technology Review, Hod Lipson, an engineering professor at Columbia, who heads the Creative Machines Lab, pointed out that people used to think that technology would destroy some jobs but would create better ones to put in their place. Lipson says the evidence now is that yes technology is destroying jobs and yes it is creating better jobs as well. But unfortunately, it's also creating fewer jobs. And this may cause all sorts of problems in the future as people find they need skills they don’t currently have, in order to get a job.
Technology, particularly robotics, is coming towards us like a large wave. It's up to us whether we grab our surfboards and get on top of it, or just watch it fearfully until it breaks over us.
When it comes to trading, we do at least have a choice. Why not start by dabbling a toe in the water - trying some automated trading in part of your portfolio and seeing how you get on?
You may find that you start to see yourself much more as an asset manager and much less as the hapless person flipping the burgers at the beachside bar.

 

To try Ivo's trading robots 30-Days for FREE click the bottom below



Comment

Comment

Why are our robots so successful?

The first thing you need to know is that our robots are not like other robots. Most trading robots have been created using past price action and lagging indicators. Then robots performance is optimized to fit past price action. That’s why you see amazing past performance results on many sites.
 
What happens when these robots trade live? They go bust!
 
That’s because these robots are curve-fitted to trade with past price action and fail miserably when they trade with a new unpredictable price action.
 
In contrast, our robots are not based on past price actions. Rather, they’re based on real-life manual trading systems. We’ve taken three successful real-life trading systems as used by professional traders for many years. And automated them, so everybody can use them.
 
This is why you can see our robots only make a few trades each week. They scan the markets like pros, looking for the best signals and trading opportunities. Our robots don't use martingale, grid, hedging or high leverage. Instead, they mimic pro traders and risk a small percentage of your account per trade.
 
It’s like having a professional trader trading your account… except it’s better!

"Real Trading - Real Results"

 

Comment