Traders using the Mirror Trading platform will now be able to control their losses by using the new ‘Pause‘ option to set an approximate loss limit in each strategy in their portfolio, thus reducing their risk when trading.
Currently, when traders add a strategy to their portfolios, they have to set an amount for each position opened by the strategy. In the next version, they will also be able to set an approximate ‘Pause’ level.
“The idea behind the ‘Pause’ option is to automatically de-activate a strategy when it loses more than the amount set by the trader,” says Lior Nabat, president and CEO of Tradency.
“We believe this is an extremely innovative feature within the Tradency platform and it adds a new dimension to automatic trading,” says Michael Zimkind, sales manager from FXDD, a leading brokerage firm that offers the Mirror Trading platform to its clients. “This new feature gives traders the opportunity to further manage risk, especially when they’re away from their computers, solving one of the main problems of automatic trading.”
How it works
In Mirror Trading, positions are opened by selected strategies automatically and continuously. New positions are being opened until the strategy is removed from the portfolio.
“However, with the new ‘Pause’ feature, there is a way to automatically stop the strategy from opening new positions,” says Nabat.
When the strategy reaches the ‘Pause’ level provided, the strategy is de-activated. This means it will stay in the portfolio, but new positions opened by this strategy will not be executed in the account. When traders log into the platform, they will get a message that the strategy was de-activated and they will be able to choose whether they want to reactivate it or not.
“However, although this new feature is a wonderful tool to help reduce the risk, it does not set an exact amount,” he emphasizes. “When traders set the Pause level, they need to understand that it is an approximate value. The Pause level only takes into account the closed positions of the strategy. This means that only the closed positions are calculated and when the open positions are closed by the strategy, they won’t necessarily meet the exact value set as the Pause’ level.
“The platform itself doesn’t close positions,” Nabat says, “not because the technology cannot do it, but because we don’t think it is right to interfere with the strategy. Sometimes during a position, there can be ‘downs’ and ‘ups’ and we need to give the experts (the strategy providers) the opportunity to do their jobs.”
Although the ‘Pause strategy’ option is a significant part of the new version, there are some other exciting features that will enhance the platform. These include the following:
?Desktop application – a desktop version in addition to the web-based version;
?Multi accounts – the ability to easily manage a few accounts with one user; and
?Saving user preferences – when a user changes his preferences (such as the results table columns, of the custom filter parameters), they are saved for his next login so he doesn’t have to change them again.
“Tradency’s goal is to provide traders with every possible technological advantage to trade successfully, and we hope we’ve achieved our goal by including these new features in our Mirror Trading platform,” he concludes.
Tradency Inc. is the developer and originator of Mirror Trading technology, which enables traders in foreign exchange to automatically evaluate and adopt global strategies. Tradency provides users with an analysis of its system’s performance that is the most transparent in the sector. Tradency’s Mirror Trading Platform – including its recently announced T-Score and Smart Filter tools – offers traders a flexible choice of combining its groundbreaking approach with traditional online trading methods. Since its inception in 2005, Tradency has pioneered this new method, creating a new category of platform trading. Tradency continues to innovate its services, reinforcing its reputation as the creator of cutting-edge industry practice. – Website: www.tradency.com
FXDD, a registered Foreign Exchange Dealer and member of the National Futures Association, headquartered in New York City, is a leader in online Forex trading dedicated to providing superior customer service, powerful trading technology, and reliable streaming liquidity. FXDD provides services to individual and institutional traders, hedge funds, commercial entities, brokerage firms and money managers around the world. FXDD offers 24-hour Forex trading by way of its trading platforms, which include: Metatrader, FXDDTrader, PowerTrader and FXDDAuto. The company’s services currently provide competitive interbank pricing, no-interest accounts, and fully-automated execution. FXDD also provides 100:1 leverage as well as competitive bid-to-ask spreads (2-3-wide on most majors). – Website: www.fxdd.com