Why our trading model is different?

Our approach is to stay exposed to the market for as little time as possible. We take profits quickly and often. We know that the foreign exchange market is THE most liquid market. Transaction costs are low and with very modest gearing it is possible to produce returns that easily match traditional forms of investment. Our forecasts are real time, but do not necessarily demand instant action.

So how does our unique forecasting model work?

Initially, our system draws on technical analysis, but here the similarity with other systems ends! Our system uses a combination of technical information, market sentiment, news and historical behavior.

“Fools rush in” ...we don’t.

No matter how compelling the technical picture may seem our forecasts err on the side of caution. Our forecasts are first moderated and screened to make sure that they do NOT coincide with economic announcements. We slow down the model when conditions are mixed or look confused until news items, which may influence the situation, have been risk rated by our in-house system, then our forecasts react accordingly.

For example, we won’t express our views during the Non Farm Payrolls, (NFPs) as, in common with everybody else, we simply do not know what the figures are going to look like.

We note on many other websites - comments like “how to trade the NFP figures…” We are very risk averse. We always ask ourselves “given the other 19 or so lower risk days in the month, why would anybody try to predict the outcome and reaction to the NFPs ?” Nor will we try to pre-empt an important interest rate decision, as again, like you, we cannot second-guess the minds of central bankers.