Our world: The world of algorithms
When we decided to use automated trading systems in proprietary trading, so-called Expert Advisors in 2015, we decided to use MetaTrader 4.
Why have we stopped trading discretionarily? Well, for us fully automated trading has four clear advantages over discretionary trading:
1. The system is emotionless. A trader's biggest enemy is always the trader himself, especially when it comes to trading with his own money. An algorithm operates trading strategies without any emotions and the human is now supporting, being the risk manager.
2. Expert Advisors perform 24 hours on 5 days of the week, meaning uninterruptedly. This guarantees a considerably higher profit, something that a private discretionary trader would have difficulty achieving.
3. The price/quality ratio between the cost of running the EAs and the annual return on investment is second to none. Even inexpensive EAs enable you to achieve double–digit annual ROIs. We've proven this in our Tests.
4. The financial market is changing rapidly. With the policy of zero interest rates, private investors are looking for new, innovative and profitable financial products and are willing to take more risk. The increasing number of start-ups in finance ("Fintech") confirms this trend, and those who avoid new technologies and offerings will continue to burn their capital in the long run.
What exactly is an Expert Advisor?
An Expert Advisor, aka EA, is fundamentally an algorithm that enables traders to fully automate the trading of one or more financial instruments on the stock market.
Fully automated means that transactions are opened, managed and closed according to an underlying trading strategy.
One could also call EAs trading robots.
Which returns can EAs achieve?
And the most interesting question: can they beat 'the market' or professional and institutional traders and asset managers? inveus not only talks about success, but also proves it over the distance. This has unfortunately become rare in the industry!
In black on white we trust ...
Our prop trading live accounts at JFD Brokers, filled with our own (real) starting capital, will give you insight into the performance that our fully automated trading strategies, operated by our Expert Advisor called FX:PEA can offer.
The inveus FX:PATEA = Forex Pattern Expert Advisor
A classic family account in use for the daughter of a good friend. Started with 50,000 euros, she has already met one or the other wish with the profit achieved. In this chart we map the net profit including the withdrawals.
Of course, the mothers account of Isabel can not be missing in a Family & Friends setup! However, the requirement should be to manage the hardly saved funds with the utmost caution. We have paid particular attention here to keeping the lot size small and adapting them to the daily event risks of the financial markets. In this chart we map the net profit including the withdrawals.
An account in use for very good friends. The Agreement: The account is held in the name of the friend with an online broker of our choice, so the friend retains full control of his funds. With a private agreement, which also protects the maximum risk of loss of 20% of the starting capital (EUR 50,000 and EUR 100.000), access to the account is granted. The profit can be taken at any time and in any amount from the Investor. In this chart we map the net profit including the withdrawals. In the account with 100,000 Euro starting capital no withdrawals were realized so far.
At the end of September 2016, we launched a Junior account for the "next generation" in our family. With a starting capital of EUR 1,000 and a leverage of 1:400, the EA should pay for the classic driving license of the granddaughters 18th birthday. Maybe our EA can even manage to put the first car on top...?
kidsVESTOR is a new project from inveus trading. The project makes our FX:PATEA accessible to parents, family and friends who want to invest in their children in the long term. Our real Money prop trading account with a real starting capital of EUR 3,000 shows the performance (in profit) that can be achieved with kidsVESTOR for our next generation.
Joint Vestor: 125.000 Euro
Joint Vestor is also a new financial product from inveus. The product is worldwide unique as we take full liability for the risk of the investor: inveus opens a joint account with the investor and adds 25% own venture capital to the investor's starting capital. As a result, the capital is leveraged on both sides. The total profit of the common starting capital will be divided in half after 6 months. In the event of a loss of 20% of the common starting capital, the investors' capital will be fully refunded.
Scale Up 5 Mio
With a starting capital of EUR 5 million in a demo account, we leave the usual account size of max EUR 100,000 and test intensively in an environment that will soon lead us to an exchange listed derivative. Here we start our strategy FX:PATEA with 13 lots and program the take profit at EUR 1,000 per trade. We only want to test the pure scaling, regardless of the demo conditions such as slippage, commissions, swaps, etc.