There were many uncertainties preventing the company from achieving the desired functionality or properties within the project. The knowledge of whether the outcome was technologically feasible, or how to achieve it in practice, was not available or deducible within the field. The project the company had undertaken showed elements of technological uncertainty.
The major technical uncertainty the company faced was regarding the interpretation of the specialist trading strategies and converting them to algorithms within the trading platform. Because the company established 20 novel trading strategies, it was necessary for a competent professional to convert every single one into mathematical formulas and algorithms. However, there were no available methods on how to develop such an algorithm logic, which was caused by the gap in knowledge and capabilities in the industry. Bretcrown initially experienced code gaps and code conflicts caused by a system uncertainty – the algorithms were interconnected, and the company understood that code conflicts found in a certain part of a system cause a ripple effect in other parts of the system. Furthermore, as the traders would invest real money through the platform, it was necessary to find and eliminate all code/algorithm issues because a single error in a specific algorithm could cause major losses. Therefore, a competent professional would have to perform extensive research, design and development of the platform and its algorithms, and proceed to a substantial amount of testing, to determine whether the system performs as required and it is safe to use for trading purposes.
The company plans to make further appreciable improvements to the platform and the algorithm logic, with help of IT professionals and traders with a specialist technical trading experience. Bretcrown and its Team of traders, first of all, developed and tested every single algorithm within unit and integration tests, to identify any potential code issues which would cause a ripple effect in other parts of the system.
The tests were an essential part of the project to deduce a working solution and the company first performed small-scale tests on a repetitive basis and upscaled them to system/integration tests once they were satisfied with initial testing. Every algorithm has been modified on a constant basis during the testing stage which allowed the company to optimise the algorithms and make sure the conversion of the trading strategies into algorithms is thorough and the same results are being reached when trading with strategies manually and trading within the platform. Multiple trading specialists with many years of experience helped the company perform beta testing using real money to prove the system is safe and perform as expected – achieving low risks and profitable returns at all times.
The company reviewed the recommendations and comments by each beta testing trader to translate these into programmable algorithms covering:
- when to execute a trade.
- how to choose ‘Buy’ or ‘Sell’.
- how long to monitor.
- when to close each trade.
- when to use ‘scalping’
- when to use ‘sculpting’
- when to use ‘trailing stops’.
- when to use ‘take profit’.
- how to react due to geopolitical events.
In addition, how to synchronize a trade on the Master terminal such that it duplicates the trade on all other traders’ terminals and enables a one-click closing of all such trades. This means that each trader would have the benefit of a Master trade on his daily results.
A very large part of Neil’s trading strategies is following his instincts which have proven to be exceptional.
He then applies the following:
Key Trading Strategy No 1.
Utilise 90% of bankroll for margin – no point in leaving funds not working for you but monitor all Trades closely and Hedge where and when appropriate.
Key Trading Strategy No 2.
Concentrate only on one product at a time and become an expert in this – do not allow the white noise of other products to interfere.
Key Trading Strategy No 3.
Sculpt often to bring & Bank profits.
Key Trading Strategy No 4.
Watch Far East Market Movements first.
Key Trading Strategy No 5.
Keep close eye on European Markets opening.
Key Trading Strategy No 6.
Monitor impact of US Market for first hour of its Trading day.
Key Trading Strategy No 7.
Close unprofitable positions quickly (every trader makes judgemental errors) – do not allow them to hurt you.
Key Trading Strategy No 8.
Utilise important indicators like Bollinger Bands, Pivot Point, Oscillators.
Key Trading Strategy No 9.
Never leave a Trade open overnight.
Key Trading Strategy No 10.
Do not lose sight of the fact that profitable Trades include both Buy & Sell.
Key Trading Strategy No 11.
When Buying Crude Buy Brent.
Key Trading Strategy No 12.
When Selling if sculpting sell Brent, otherwise consider selling WTI.
Key Trading Strategy No 13.
Hedge your positions but only if it is wise to do so taking profit and holding the others open until the next upswing.
Key Trading Strategy No 14.
React fast to geopolitical events.
Key Trading Strategy No 15.
Have the courage to open a position – bet on your instinct.
Key Trading Strategy No 16.
Use trailing stops and stop losses only if you cannot watch the screen every second, in other words, if you have to step away for more than a few seconds.
Key Trading Strategy No 17.
Close Trades at the end of the Trading day, leaving none open overnight.
Key Trading Strategy No 18.
Aim for a loss rate of less than 10% of trades. For example, out of every ten trades try to keep your losses to one trade.
Key Trading Strategy No 19.
Take full advantage of special incentives provided by your Trading Platform – for example, often the Platform will offer 100% bonus funds to trade with – use it.
Key Trading Strategy No 20.
Set yourself goals like profit percentages, profits per day i.e. if your fund is £250,000 then aim for £25,000 profit if your fund is £500,000 aim for £50,000 profit. Target a monthly profit of 100%.