Fertile mathematical minds and algorithms, like seeds, need to germinate, to be nurtured and encouraged to develop, they require the correct conditions to thrive and flourish and when opposed by setbacks, find solutions and apply them logically and dynamically to generate success.

The Bamboo algorithm (the performance of which is described in the chart above) has come a long way from a “simple” idea conceived four years ago by spread betting enthusiasts gambling on the forex markets and stock market indices.

Since January 2008 through applying more formality and discipline the Bamboo algorithm has gone from strength to strength. An increasingly disciplined approach to spread betting through more sophisticated technical analysis has seen steadily improving performance coupled with reduced volatility.

The algorithm may achieve an annual return of between 8% and 12% with potentially a greater than 75% success rate from bets placed over any 12 month period. Despite the fact that everything about betting on currencies can be specifically learned in advance, 90% of individuals still fail, so what is the likelihood that the Bamboo algorithm can deliver on its stated objectives?

A structured and highly disciplined approach to spread betting has been meticulously refined over the last four years using the algorithm. An interesting pattern has been established based on a series of proprietary pre-determined technical indicators relying on prices reverting to the mean. These are based on a simple mathematical system accompanied by a highly disciplined approach to opening and closing bets on a regular basis, “a little often” being the genesis of the algorithm’s design. Patience, confidence and an ability to accept responsibility are very important traits, which are applied to placing bets in the FX market.

The algorithm has already identified 631 potential bets in 23 months, across 13 currency pairings, the FTSE 100 index, Gold and Crude Oil futures and 3 equities with a 91%* success rate on discrete bets placed.

During the first full year of spread betting in 2008 the return was 19.49%, which has been followed up by 10.99% in 2009, a simple return of 1.38% per month.

A “simple” idea laid the foundations for the construction of the Bamboo Alerts proprietary forecasting information model, which has now been developed into a sophisticated information alerting system across many currency pairings. It is regularly being refined and enhanced in an effort to add increased value and reduced volatility while continuing to offer an exciting opportunity for individuals to profit from the software.

Note1: The Bamboo Alerts proprietary forecasting model is not an investment fund, it is for illustrative purposes only and is not intended to be construed as an investment fund and any information provided on this site should not be interpreted as investment advice. All figures quoted are indicative returns based on actual bets placed, but please remember past performance is not an accurate guide to future returns.

Note 2 : The term bet assumes that the user of the service is operating using a spread bet service provider. Spread betting allows you to bet, or take a position, on whatever you think a financial market will do next. The more the market moves in your favour, the more you benefit, with unlimited potential. Conversely, the more the market moves against you, the more you could lose – and you may lose more than your initial deposit.

*As at 1st April 2012