Indicators and Algo tradings
A journey through the financial markets can raise a variety of questions.
The first question:
What lead professionals and/or individuals to succeed in the financial markets?
As for the professionals, they manage capital on the financial markets for their clients (management known as "for third parties"). To understand their function, it is necessary to look at the two sources of remuneration that they take:
-The management fees: They are generated by the service provided; in other words, independent of the loss or profit on the capital of clients, the charge a fee for the management service.
-Performance-related commissions: These are paid in the situation of gain. These remunerations are only honored in the event of a gain, or a gain higher than the amount agreed in advance.
Over the decades, management fees have lost value at the eyes of managers. At the same time, performance-related commissions attract significant interest as the source of income. Of course, there are different types of managers, situations - and remuneration - depending on the framework, the context, the management style, the financial institution, the country, ...
The major problem in the world of management is that one of the main theoretical models is leading a growing proportion of managers to give up ‟active” management (i.e., in short, trying to beat the market, in other words - roughly speaking - outperforming the major indices). These managers are called as passive managers who benefit from advances in financial informatic technology (automation of processes to replicate indexes, at lower management cost). Thus, the world of passive management give up performance fees, but make it up by management fees that are more profitable (through lower costs on the one hand, and manage more amount of money on the other), more regular (because they do not depend on results) and therefore less stressful.
Facing with this world of passive managers, active managers are defending themselves. They try to find increasingly subtle but insightful models (movements on the financial markets) in an attempt to "beat the markets". The best ones succeed... but they are few.
On the other hand, the management industry is offering less and less of these funds to the public. They have to accept to be satisfied with standardized product that are heavily charged with various and varied fees, very often coming from the world of passive management. Hence, more and more people who are not market professionals are willing to try their luck on the markets.
 Based on the Financial Market Efficiency Hypothesis.
A gradual offer
Gravity Markets' initial offer is a set of efficient trading tools in an optimal framework :
- Security of the tools,
- Legal security,
- Harmonization among all service providers.
This basic offer is typically suitable for a former market professional who, having become independent, wants to implement his experience in an efficient framework. He wants clarity and transparency on all services and tools at a competitive cost. This is the case.
From this initial offer, a set of services are provided to improve his use of the tools :
- Implementation ofpersonal indicators (we provide a user-friendly package which integrates code into existing trading tools), for the private trader who does not have the time, or the competence, to code his tools. At this level, the private trader knows what he wants and above all asks to be free from the complexity of implementation. The private trader will carry out his trading manually assisted by his personal indicators.
- Assistance in the design and implementation of the personal tools presented above, for the client who has precise ideas of the markets but wishes to be assisted in the reasonable choice of indicators suitable for him (risk/performance ratio) and who wishes to benefit from assistance in the back-testing of his personal tools. As in the previous point, the private trader will carry out his trading manually assisted by his personal indicators.
- In this case, the assistance is based on the the implementation of more or less automatic algorithms. With two possible levels depending on whether the client has a precise idea of what he wants and of what he wished to be assisted in the realization, or whether he has ideas but wants assistance in the design. The objective, for the private trader, is the automation of his trading, i.e. the realization of his operations. In concrete terms, the computer is responsible for all operations, from market surveillance to the launch of orders on the market.
Of course, our clients may wish to be trained in the design of a system and then entrust us with its implementation and testing.
With this graduation of services, GM notes that many individual traders with an interest in trading are too often considered (by brokers) as mere customers with no financial knowledge and no need for it. However, GM notes that many have, in their own field, an expertise that allows them, with the right training, to understand financial markets, and the main aspects of technical analysis and trading in relation to the level of service they choose.
This is why GM offers you truly training in technical analysis and in trading in-depth. Regardless of the level of assistance you choose, the level of support GM can provide will allow you to :
- Properly choose and measure the risk/reward stakes,
- Choose the tools that match your profile,
- Implement the trading style you have chosen.
Gravity Markets insists on the usefulness of these courses. You will be able to choose the level of service that suits you, you will understand the content.
The quality of Gravity Markets' service is based on our desire to help you master your trading. We offer you tools and the right way to use them, from understanding them to proper implementation.
For more information, please contact us.