Ib Hosbond: EUR/USD Algo
On this page you can read about a strategy you can automatically follow on your own account if you are a client of NPinvestor Fondsmæglerselskab. In the box to the right, you can sign up to hear more about the strategy and about how it happens in practical terms when you want to follow a strategy.
NBinvestors’ customer IB Hosbond has developed his own algorithm in Straticator.
The algorithm trades the currency cross pair EUR/USD. From mid-November 2018 to mid-January 2019, it has been traded 130 times approximately, the equivalent of approximately 65 times per month.
The strategy is purely algo-based, which means that no manual trading occurs at any point.
Gearing is used as part of the strategy but a strict stop-loss order is always used.
The strategy has previously been successfully run in Straticator via another broker than NPinvestor Fondsmæglerselskab. In 2017 it turned a profit.
A performance fee is charged each month. The fee is 10% of that month’s profit. There is High Water Mark, so if there is a deficit one month it is deducted from the following month before the performance fee is calculated.
The minimum investment in order to follow this strategy is 10000 DKK.
Description of EUR/USD Algo
The strategy tries to take a short or long security position when momentum is expected to increase. The starting point for the strategy is a positive risk-reward ratio of 1 (risk). 2 (reward) The maturity per trade has historically been 5 hours on average.
The risk of this strategy is that the market conditions can change meaning the algorithm will no longer work. Investors may lose their entire investment.
This is a high risk investment given that gearing is used. However, the gearing can be adjusted individually.
Risk warning Trading with CFDs and currency involves a high risk of loss. A European survey has shown that 74-89% of retail clients lose money when trading with CFDs.
Historical return is not a reliable indicator or guarantee for future return.