MIAMI, Florida, March 21, 2016 /PRNewswire/ —
IMI Founder Russ Mason invited Chief Operating Officer and Co-Founder of Mediatrix Capital Michael S. Young to speak about why the strategy is an ideal complement to an investment portfolio. Key takeaways included:
Trade Cycles Not Momentum
The most successful trading algorithms look for longer-term trends and counter trends that take place over 1hr, 4hr and 24hr cycles. The best foreign exchange funds utilize a top-down thematic approach to develop underlying themes, drivers and exposure to the macroeconomic landscape in real time.
Nix the Emotional Quotient
How a trader reacts is critical to trade entry and exit decision-making. It is essential to eliminate the highly emotional aspect of trading. Algorithmic trading overcomes that hurdle by using software programs with a defined set of rules to place trades with the goal of generating profits at a speed and frequency that is impossible for a human trader and without the hindrance of emotional drivers.
Defend Your Edge
It’s great to be right a lot. However, what matters most is having strong automated defense strategies for capital preservation that include multiple data points to define defense, and which have a positive impact on equity even when you’re wrong.
Understand the Four Types of Algorithmic Trading
It is important to understand the four types of algorithms and how to utilize them. Statistical refers to an algorithmic strategy that looks for profitable trading opportunities based on the statistical analysis of historical time series data. Auto-hedging is a strategy that generates rules to reduce a trader’s exposure to risk. The goal of algorithmic execution strategies is to execute a predefined objective, such as reduce market impact or execute a trade quickly. Direct Market access describes the optimal speeds and lower costs at which algorithmic traders can access and connect to multiple trading platforms.
Focus on Risk Mitigation
Algorithmic trading rules are typically based on mathematical modeling to optimize timing, price, quantity and risk. Algo-trading reduces the risk of manual errors in placing trades as well as the possibility of mistakes by human traders based on emotional and analytical errors. When in doubt be sure you have an EAN (Electronic Algorithmic Navigator) working for you, which by definition excels in the mathematics of signaling market directional probability, but more importantly employs sophisticated, automated hedging strategies for the moments when market directional probabilities are wrong.
Go for the Gold
Gold has been the standard by which to measure wealth since the beginning of civilization. Today, world-class algorithms are able to trade the gold spot market and effectively grow investors’ wealth substantially, and with greatly mitigated risk to principal, historically.
Study the Military for Best Defense
By employing a military style defensive strategy for growth maximization and drawdown minimization, it is imperative to look at all angles of equity risk and defend against unforeseen negative influences such as economic news, world events and market manipulation. If these strategies are not well defined, proven and automated, you are not working with an EAN and should find one.
Don‘t Get Involved with Brokers who Trade Against You
Many retail spot market traders are unaware that their very own retail broker and liquidity provider might be their worst enemy when navigating the markets. Defensive trading in action also requires that a firm trade only through certified ECN/STP brokerages. These brokers never take the other side of a client’s trade and simply pass the risk onto the banks within their liquidity pools. This allows the algorithm to trade without price and spread manipulation from the broker.
“Sophisticated investors and family offices often choose Mediatrix Capital as part of the alternative investment structure within their portfolio. Attendees at our Affluent Family Forum enjoyed learning more about what other professionals are doing successfully,” said IMI Founder Russ Mason.
About IMI
Since 1981, IMI has been a trusted educational/research firm providing market research and events such as forums and roundtables. Annually, more than 2,000 institutions attend these gatherings. In addition, IMI publishes detailed monthly newsletters, research analysis, and newswires pertaining to industry developments, economic trends and the legal consequences affecting investment management.
About Mediatrix Capital, Inc.
Mediatrix Capital, Inc. provides Managed Account services for an elite clientele, trading the Foreign Exchange Market including Spot Gold and Spot Silver markets. The team uses advanced technology and strategies that have been proven to provide a consistent and reliable return. With a team of the world’s leading OTC FX Currency Traders and a combination of complex derivatives strategies, algorithms, specialized and proprietary software models, the firm offers accredited and qualified investors access to one of the finest high rate investment funds available globally. The firm’s intent is to provide investment solutions that investors want with 100% transparency, 100% liquidity and world class, dependable monthly returns that most firms only hope for in any single year’s time.
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.
For further information, visit http://www.mediatrixcapital.com or call +1-800-905-1006.