||Mixture of EA & Manual
||9th Jul 2017
Learn more about CROSSALGO by FN
CROSSALGO is another strategy by FN, a veteran City proprietary trader with 30 years experience in the top investment banks.
It is a fully automated system, managed 24/7 with manual interventions in times of stress. It trades a basket of 9 cross currency pairs ( = pairs without any USD involvement), simultaneously.
The edge of CROSSALGO is that it is entirely based on a technique / an algo, which shows tendencies of a very conservative martingale which is based on time, not on price levels.
CROSSALGO is a part-constituent of a larger portfolio of 5 strategies, created and managed by FN, 2 of which are present here on the Simpletrader network.
The 2 FN strategies which are present on Simpletrader are low to medium risk, as the drawdown percentages show. They are institutional grade professional strategies, with realistic returns, long term survivorship in mind.
You can increase the leverage to your own likings and risk tolerance levels.
What is the underlying Strategy and Style?
Strategy: Crossalgo is a sophisticated 100% mean-reverting strategy.
Currency pairs: It trades 9-10 cross pairs (no USD-pairs) simultaneously.
Style: Fully automated with manual intervention.
Technique: very conservative, time based martingale.
Is martingale not dangerous?
Yes and no. Martingale is a technique that is mostly abused by inexperienced retail traders because they use too small an account size with too much leverage, too high a multiplicator, too many multiplicators steps, too short a time frame and poor risk management. Mosty, their martingale set-up is too basic.
Whilst one can never completely eliminate the inherent risks of a martingale, we have built in several safety valves to make it a very conservative martingale:
- the multiplicator is kept very low, and the first 3 steps are traded without multiplicator,
- our martingale is based on time intervals, not on price intervals,
- the maximum number of steps is limited to 8, and we have - so far - never reached that number yet,
- we use a trend detector, and in case a trend is detected, as a safety valve, all conditional entry criteria of the martinagle are increased before entry.
- in times of financial stress, we intervene manually.
What is the recommended minimum account size?
You can trade this system with any size you like, bearing in mind the following:
The feeder/master account keeps a target 6,000 GBP account balance, that is why the drawdown is low, as the minimum lot size per trade is 0.01 lot. Current drawdown after 12 months : 15%. Average monthly returns are 2.12% for this account.
You can trade with - for example- a 3,000 GBP account size, and in that case the monthly results would be double of the feeder/master account, as would be the drawdown. In this example, the monthly average returns would be 4.24% and drawdown 30%.
At times, the combined simultaneous exposure can reach 0.6 lots, or 15-20 positions. This translates in a relatively low leverage of maximum 10X.
Positions last from anywhere between hours to multiple weeks.
What currency pairs are traded?
Non-USD pairs, pure crosses.
GBPCAD, GBPJPY, EURGBP, GBPAUD, AUDCAD, AUDNZD, EURAUD, EURCAD, NZDCAD.