We use a fully mechanized trading system. It is based only on Technical Analysis to decide its future trades.
There is no investor that makes money without seeing charts (or having someone seeing for them). Technical Analysis makes possible to predict with more accuracy future price movements. Also, it's with technical analysis that many investors reach their success. Without knowing how to read a chart, we won't be able to do good trades and will be only dependent on luck.
Now not all people get good enough on that area to be able to get profits. Some hire brokers and some can't afford them. But there are less expensive ways to have a "private broker" helping us with our daily trades. Human being has been making machines doing jobs that were only possible to do before by persons, in a quicker and cheap way. We can make a machine do millions of calculations in minutes for free, which would take years for a person to do by hand.
Now we get to one point: is it possible to make a virtual broker? The answer is yes. Basically, with only charts and technical analysis, anyone can be able to predict with some accuracy future price movements in order to do profitable trades. No one can predict the future, of course, but it's still a good way to try it. Many investors make millions with nothing more than technical analysis only, without caring about fundamental analysis, news, etc.
Now, if it's possible to make profits based solely on chart interpretation and technical analysis, which is a process purely technical and that it's possible to be done by a computer alone (after all it's nothing more than a group of rules and charting interpretation), it is possible for a trading system to make profit in a completely automated way.
Let's see one of our trading systems in action:
This was an example of a trading system giving orders in real time and displaying its profits on the screen at the same time. Orders being given in a fully automated way.
It's difficult (and we would risk saying impossible at our times) to make a machine interpret news, analysts' decisions, watching television or evaluating investors' reactions, among other things. Those are jobs for a human mind. But a machine can use technical analysis to decide future trades, much more quicker than a human being, in a more accurate way, and without any of those emotions that makes investors commit mistakes (like the famous Greed, Fear and Hope).
We can see in this chart below, 3 occasions that could not result in profits but instead in losses, if they had a human being taking care of the decisions, and where you'll see a machine acting and giving orders. And why? Because machines are not affected by emotions like we inevitably do.
In this example, how many investors would not, ruled by fear, decide to sell in worry face to the sudden fall so they couldn't lose more money? If they would do that, they would assume a loss, when the system (which wouldn't have any fear at all) would continue to maintain its position, and would wait for the cross to recover from the fall, making a profit this way. The damage could even get worse if the investor would decide to open a short position after closing the long one, in order to get some profit out of it. That, like the other example we have on the chart, would be mainly because of Greed. How many persons would not wait, after a rise of only 20 pips, for the price quotes to rise even more in order to make better profits, risking that way to make bigger losses? Well the system didn't care if it got up enough to make a profit or not. Even if it had a 0% profit, it would go out of the market if it thought it was the right thing to do by its rules. And in the last example, how many persons after that fall wouldn't wait for it to rise again in order to avoid assuming losses, hopping it would rise again? That would be another emotion affecting traders' decisions, something that the trading systems don't have.
It's natural for all investors to do those mistakes sometimes very often; it is after all part of human nature to make mistakes. A computer on the other hand, won't make those mistakes caused by emotions. It decides 100% by the rules. If it assumes a loss, it was not because of a bad decision or emotions' influence, but because the market has behaved in an erratic way, in a way that defied the patterns that are usually predicted by the system.
Now, our trading system is not based on regular indicators known by all, like stochastic oscillators and others. So it isn't limited to their possible performances. Our trading systems are made using indicators which are made by us, according to some of our theories about ways to find behaviour patterns and improve their adaptability to the markets. So there is no way you would find its behaviour equal to any combination of any number of known indicators known nowadays in technical analysis. It's a completely original system from the start.
It is very adaptable and able to maintain profits for a large range of years using the same parameters, which prove its adaptability and stability, giving the results which are seen on its past performances.
We have to note also that those performance's results, were made without any kind of stop-loss or any kind of take profits, taking in consideration only a margin call at 80%. Its results could be much better if used with some additional risk avoidance measures. This means that these results were found taking in account the worst situations.
Let's check this example:
As we can see in the example given above, EUR/USD cross was very overbought on the 1.36 levels, where many traders have closed their positions (and even openned short ones) expecting for future falls. The system, as a purely mechanical trading system, didn't take that in account like a human analyst would do. He got out of that long position and assumed a short one only near the 1.33 level, only when the system has decided it would be a reversal in the trend. In this case, like in some other rare cases, we could anticipate the system's move; if we close a position (without opening a reverse one) in some extreme cases, even if the system decides to maintain an open position, we could improve our gains.
That would be avoidable and used only on very extreme cases like that in the example, when we could be almost sure that prices were near to invert its trend.
Another example can be given, when a system gives an inversion signal during a very long fall. Imagine that the system had opened a short position at 1.2100 and the EUR/USD cross would start to fall very quickly, and by some reason he would give a long entering signal around 1.2000. We could at those times, when the cross is falling in a continuous and drastic way, wait until it stabilizes, and we would then enter maybe not in 1.2000 but in 1.1900. If the price is stable, system signals for those who follow them with precision, would be taken, but during powerful rises or falls, it's easy to wait a few minutes until it slows down its movements to enter a new position, gaining in that way some extra pips of profit in each trade.
With these two types of changed behaviours (and some others), we could improve our results, since the system itself could not predict those events and some of them would be easily predicted by a human mind.
All this just to tell that the performances that the system has made are on the worst conditions possible. Without stop losses, without take profits, without getting out on extreme overbought and oversold conditions, and entering positions against the trend at the middle of a rise or fall whenever the system has a new signal. These results are made like that. With these factors taken in consideration, we could see that its gains would be much better in other conditions.
The trading system as a trend confirmation for traders:
Our trading systems can act as indicators of intraday and daily trends also. Even daytraders, which have their own way and methods of investing, could use a trading system to backup their moves. Lets imagine that a daytrader would do the trades present on the following example, which were made by our hourly system without the trend protection (which is the way we call to the method when our system could avoid some bad trades against the trend, which was shown on that example).
In this example, we can see that, our daily system would be in a short position since March 2005, so we would see it assuming long positions (marked in blue) against the trend of the daily system (which was short since March), and as we can see, as it was during a fall (on a small bearish trend), sometimes only the short positions (those market at red) could give any profit.
Imagine a daytrader assuming those positions, thinking like the system. And imagine that the daily system, which would be short since March, would be our trading system which that daytrader would use. If the trading system was telling that daytrader that he should be bearish on the market and not assuming long positions meanwhile, we would have almost all profitable trades.
The daily system was right. Prices fell, but with so many trades, the daytrader would make less profit. Why? Because he assumed lots of positions against the opinion of a trading system, that is usually right. If he would ignore all the long trades he wanted to do in the first place, to be always on the system's side, he would only assume the short positions, which you can notice, ended almost all of them with profit, and would avoid long positions with losses (almost all of the long positions there, have ended in a loss because price has fell after they were assumed).
So, a trading system is not useful only to inexperienced traders, which would invest guided by a profitable mechanical system. They would be a valuable tool also to more experienced traders. It can't be a bad thing to have a profitable trading system in our side, right? Any trader would be happy to know he would be trading on the same direction as a profitable system. This would result in more gains and fewer losses for a trader, following advices of a profitable trading system. A trader could be out of the market if he wanted to be long and the system would be short. And a trader would assume with more guarantee of success a long trade where both the system and him would be "thinking" the price would be about to rise. Those traders would get also warnings of good exit points when seeing that the system would be assuming a reverse position to theirs. That's another use for it.
So that's what GFX-Trading.com exists for. We can take emotions completely out of the equation by letting our users trade a 100% fully mechanical trading system, or increasing the chances of getting profits to the experienced traders giving them advices on what would be good positions to follow accordingly to a trading system with very good performances.
The system would tell its users its current position on a daily and hourly basis, its price entry and hour, and position and would close that position or invert it whenever it would decide to give another signal. That's enough for the user to be able to follow its trades.
It's important to notice that our trading systems were validated by historical testing (as well as real time testing and usage by our users, and by ourselves, that are still testing other ones), and on real and quantifiable data taken from the markets.
With the use of our trading system, traders will stop being indecisive in very important moments where thinking fast would be very important, as well as stop doing mistakes due to emotions like fear, for example. It gives the discipline that most experienced traders took years to have.
So, GFX-Trading.com can offer traders the opportunity to get superior returns in a consistent way, if following our trading system orders, or to improve your trading skills and profits by using it as an advisor.
The only thing that is asked to the user for the system to be useful would be: to be realistic on his expectations (remember if you follow the system by the rules you can't get more profit than the system), and to be patient and wait for the system to give a signal. Remember that trading systems have their losses also (as you can see in the results section in the charts and tables), the difference is that they have greater returns and make consistent profits in time as you can see with the returns given there. And remember that leveraging can greatly magnify the chances of having losses, with a 1/1 leverage it's difficult to have a 2% loss, but would take more time to achieve the same level of gains.
For those that use the system as an advisor, remember that its performances are always updated on our site so if you follow our system as a trend advisor, try to follow it well, because if you follow it only sometimes, the results could not be as you may be expecting. For those who would use or system only as an advisor for their investments, remember that our system results are those exposed on our website, so if you have less profits than it, you can start thinking in using it in a more automated way with less human decisions and emotions to elevate your gains to the ones of our trading system.