Development of the trading strategy, which is now the key advantage for Stamford Trading Technologies, LP., started in January 2016, when a group of highly qualified US and UK economists, lawyers and traders rallied to find essentially new methods to invest on the binary options market.
It is generally known that there are a vast number of investment strategies for trading binary options, but they are only able to produce positive results in good market conditions. The goal that our specialists set for themselves was to develop a robust trading strategy able to ensure favorable results in any circumstances.
As a matter of fact, the term «robust» means “resistant to interference, change or «emissions». After all, on financial markets there can be a powerful rise, as well as a dramatic fall, however, a good (i.e., robust) trading strategy should work steadily in any situation.
The problem was solved due to combining most advanced algorithms to search for entry/exit points with reasonable money management rules. Robustness was achieved through the implementation of modules able to successfully identify the current and the nearest possible phases of the market. As a result, the system is able to acclimate to the actual (real) work conditions, and thus, is adaptive.
Any professional trader knows that in order to benefit from trading in financial markets, it is necessary to have exact answers to the following essential questions:
- When to «enter the market», that is, when to open a position on the financial market;
- How much money should be spent to open a position;
- When to «close the position» (or «exit the market»);
- When is it preferable to stay «outside the market», that is, not to have any open positions.
The financial market is very volatile. Depending on the current economic situation of a certain financial instrument (be it currency, securities, commodities or other assets traded at the exchange or OTC markets), an upward or a downward trend of varying strength can arise, or the market can be flat, that is, sideways movement without an apparent trend, or consolidation. At the time of important economic news publication sharp price movements («spikes») may occur that can break an ongoing trend and give a start to a new one that brings adjustments to a trader's plans, and it does not always have a positive effect on trade results.
Altogether it is called «market phases», and is vital to determining the points of opening and closing positions. Stamford Trading Technologies, LP. specialists managed to develop special software modules that can precisely identify a current market phase and predict the nearest following phase with high probability, which, in its turn, allows to build the most adequate trading and obtain the highest profits.
Another important component of successful trading is so-called «money management», that is, making money yield the highest interest-yielding value for any amount spent. Based on computer data analysis, Stamford Trading Technologies, LP. trading strategy is capable of determining the potential for a successful deal at any given time, and can, therefore, vary the sum of the forthcoming transaction significantly to minimize risks. That certainly has a positive effect on the overall trading results, due to the fact that potentially risky transactions are carried out with lower amounts of funds, and transactions with greater potential for profit with higher.
Upon completion of the software modules development, the system was launched on a trading server with round-the-clock broadband connection to the Internet to be thoroughly tested. The testing was carried out in two modes: by historical data (based on Reuters historical quotes, which are generally accepted and trusted), as well as in real time on a current trading platform of one of the binary options market brokers.
After long and thorough testing of the developed trading strategy we received very promising results that allow us to look into the future with confidence and offer our strategy to a wide range of investors.