KEEP 80% OF LOSING AND ONLY 20% OF WINNING TRADERS?
THAT'S THE BROKER'S "GOLDEN RULE"
WHICH IS NEVER ABANDONED
EVERY TRADER HAS APPROXIMATELY 90 DAYS TO WIPE OUT HIS ACCOUNT
AND THERE IS A GLOBAL REASON FOR THAT
DO YOU WANT TO KNOW WHAT THAT REASON IS AND HOW TO PROFIT FROM IT?
DO YOU WANT TO KNOW HOW WE GOT TO KNOW IT?
KEEP READING TO JOIN THE WINNING SIDE OF THE ORDER BOOK
FIRST THING WE TEACH, IS THAT THE TRADING CAN BE VERY WELL PAID HARD WORK, OR VERY BADLY PAID EASY JOB.
NOT THE OTHER WAY AROUND.
We are a financial market analyst company that provides expert mathematical support to a wide range of Traders - from Institutional to Retail. We know all the unspoken rules of the trading and we are also offering the retail traders a chance to stand up to professionals on fair rules. The facts speak for themselves, check us out right now.
We have more than 20 years of experience in financial analysis. We have been supporting the biggest brands out there.
We used to work on many projects that the average trader can't even imagine. We simply know things that others don't.
We have seen thousands of traders failing due to simple lack of experience - and experience is something you can't gain from amateurs.
We know what and where to look for. Amateurs are wasting years for the basics, we have it all in one place
If you are aware of how much knowledge you lack – you are halfway to your success. That is where we start.
We can teach you the biggest secrets of forex markets and make you sensitive to the biggest opportunities.
The majority of our clients are Institutional Traders. We provide them with the most valuable thing on the markets - the advantage over others
Our clients are the most successful traders out there. No compromises, no shortcuts - just the raw meat of the markets
In order for financial markets to "flow", there is a global need for liquidity. That liquidity is provided by the so called "market makers" - meaning the brokers. Their responsibility is to keep bringing newcomers to the markets, in exchange they get a huge piles of loans from banks - in that way the broker can offer you a leverage (a free loan). The rule is that every broker that provides leverage must have an "open loan line" from one of the major banks. That makes every leveraged broker a market maker - by bringing the "fresh meat" they keep the market rolling. For that particular reason, every broker must first fulfil its role as a newcomer bringer - and only after that the broker can engage in trading. For every broker, the costs of all of that oscillate between 50% and 90% of their customers’ money, so approximately 80% of traders must lose for the business to exist globally, and the remaining 20% of traders to win. And this proportion can be detected as the cost of transaction with any broker (spread + commission). The money that is lost by the 80% of the traders is the pot that the others share. Despite the trendy three letter shortcuts that the broker claims to be (STP, ECN, NDD...) - they must be also a market maker – otherwise, they will not be able to provide leverage. Whether you like it or not - this is the first and the most important rule of the game for the Retail Trader.
You can think of Retail Traders as of Essential Workers of the Markets. They provide the majority of liquidity, which is the Market's life force. They are also the most deceived and exploited ones.
It's as global as local rule, it applies to every Broker and Trader on this Planet. That's why it's so important.
The answer is NO. In that case, the Broker would go bankrupt. And sometimes it does happen. If it happens to a small brokerage company - it just goes bust, but if it happens to a large investment bank - the market experiences the so called "flash crash" (Link) – the bank takes the Investors’ money to make up for its loses. Like with CHF in 2015 or TRY recently. Every Broker keeps two order books - called an "A Book" and a "B Book"- the former contains all the losers - the latter contains all the winners. Every Trader is by default enrolled to the A Book, and only if one shows, that one knows the drill - one is transferred to the B Book. The Broker cannot afford having only the losing traders -in that event the flow of fresh money would stop. On the other hand, the Broker can’t afford to keep more than 20% of winners –in which case the Broker would have to pay out more than the Broker earns. So every Broker strictly controls the A book’s and the B book's content. And that "content" is your life as a Trader. If you understand that - you have your foot in the door of financial markets. Just the foot. And this is the first thing that every Institutional Trader learns on "the floor". As a Retail Trader you will not have the opportunities that the Institutionals have, but you have other meanings and tools that they don't - so by knowing the advantages of your own possibilities you will stand a chance. When you get your Mind-set right - you become a Trader, otherwise you are still in the Fairy-tale World. The Institutionals are always on the winning side of the table.
Because they understand the reality of markets.
This is the reality of modern Financial Markets. Please understand that Brokers are no philanthropists, they want to earn money - as you do. They don't give the Traders free loans just like that - there must be something that encourages them to do so, right? And that is the above rule. So - use that rule! To be a Professional Trader means to know which side to join, not how to play cowboy. If you have a family, you know what we are talking about. This is the Planet Earth, and these are its rules. Bluebirds don't earn money on markets. Quantitative Traders do.
For us, trading is a business. We advise how to invest - not how to gamble. Every investment needs a business plan. We advise our customers on their business plans - how to use the available tools and resources in the most profitable way. How to use "what you already have" to maximize your profits. But we do it the right way - have a look at one example - the leverage. What is leverage? It's a multiplier of your capital. But how is the leverage used by amateurs? It's used to open huge positions, totally ignoring the purpose of it - therefore maximising risks, but not the profit. We see/perceive/understand the leverage as a tool for risk minimising. This is the PRO approach. The leverage lets you widen up your portfolio, WITHOUT increasing the position size. Whatever strategy you use - if it gives more than 51% of profitable trades - you should be after trading as many instances of that strategy as possible - to maximise your chances. Your margin should be used within the risk allowed by your strategy - but in as many instances as possible. Simply put - being a Retail Trader, you have access to large leverages - that's something that Institutionals can't have! Use it to your advantage over them. But what does the majority of Traders do? They apply it exactly the opposite way. Instead of opening one huge position, let's say for WTI-OIL, and risking your whole account with large leverage, you should calculate at least 10 positions for unrelated instruments (and that is called a "Diversified Portfolio"), knowing that if your strategy gives 51% on average - then 10 small positions are always better than a big one. The risk is blurred, but the profit is not. By having a large leverage, you can do much more than other Traders with a smaller one (yes, the size matters!) but using it just for one position is (forgive us) just stupid. The leverage can be a very useful tool, but without a proper "user manual" no one can apply it the right way. And the proper user manual is exactly what we provide. Simple, right?
It's the method of analysing the Market. The word itself has been very trendy recently, so let us bring up some memories to explain the matter. Do you remember the times when there was a huge flow of things that were "digital"? Digital this - digital that... Then the next trendy adjective was "interactive". Everything was unexpectedly interactive. Then, there was "HD"... and so on. These are just the trendy words, nothing more. When economists want to sound professionally they overuse the word “quantitative” – and they do it a lot. For example, "quantitative easing of money" simply means to print a lot of new money. To extend its quantity. And the same applies to "quantitative" on the Markets. To be a "quant" means to be able to construct your own analysis - without relying on others. It's crucial for every trader, as everyone has one's own style of trading, and needs to analyse the Markets in conjunction with one's Trading Plan and one’s way of thinking. Institutional Traders require analysis made specially in the field they look for-i.e. the last bar change, or VWAP distance, and so on. There is a lot of universal analysis out there, but it is all useless for Professional Traders. Every Trader employed by an Investment company is always given a task of constructing their own analytical tool.
To get employed by, let's say, Goldman Sachs you only need to demonstrate one skill - to properly analyse the situation and draw conclusions from it. On the CV of every Institutional Trader, you will find that skill bolded and outlined - you won't find "following the signals" or discovering "a Holy Grail strategy" - no. Every Institutional Trader, before he is given his own Bloomberg Terminal, must accomplish the task of becoming a quant. Otherwise, he is fired. On the higher levels, the Senior Traders have their own quants, but not just after getting hired. They must know what this business is all about and prove their value.
Quantitative - means "calculating by quantity" - that's all. :) But calculating fast and accurately. Quantitative Trader is able to assess his Investment before the others - and has special tools for that (which we teach to construct).
But let's concentrate on Quantitative Trading, right? We want to show you an example "straight from the floor" of one of the major banks. Many Traders have seen this movie, but how many of you, guys, have understood this bit:
And how do we know that you have actually missed it?
You missed a very important lesson on trading reality, and you did that because it's the floor reality that Retail Traders don't get to see. Let us explain:
First of all, this scene is very realistic, this is how it really happens.
That's why this movie won The Oscar Prize.
Jarred, the guy presenting his offer, is a Senior Trader. He has an idea that was checked by his own "Quant". And this is true on the floor. Senior Traders have their own Quants - as CEOs have their own Secretaries. But before he became a Senior Trader, he had to do all the calculations himself. He had to be his own Quant for a few years before he got someone to help with calculations. As a self-employed person is his/her own secretary. The Trader has to prove what one is worth before one will get his Quant. And this is what you have missed.
If you want to succeed as a Retail Trader, you have to be your own Quant, you have to be a Quantitative Trader, in other words. And this is what we can help you with. You don't have to win a Math Competition in China, you just need to know what tools are needed to make your own preparations. In Trading, 99% of the job is preparation - and only 1% is actual pressing the "BUY" button. This is what Retail Traders usually don't know - or overlook.
First, please read everything we posted on this Website. You probably didn't know about most of the issues we explain here. Go through every subpage and make it your own mental property. We have prepared two Training Programmes – a Free one and a Paid one. The Free Programme is prepared to teach you the basics. It reveals some secrets of the Markets, but it's prepared in such a way that you will see the basics the way that the Institutional Traders are taught. It's not any rocket science, it's just the most important knowledge about Markets, without which you don't stand a chance. We have prepared these programmes for the Retails’ reality, that is to say, without usage the devices like the Bloomberg Terminal (it costs $24.000 per year per single terminal account) or neural networks - but with the same techniques. You will be surprised how similar they are but also how much more sophisticated and effective they are. In the Free Programme you will be taught the basics, in the Paid one, you will find out how to use the tools at your disposal to achieve the same results. But let's make one thing straight upfront - we will not do the job for you, we will teach you how you can do it yourself.
Once, one of our teachers approached a student for whom he had written an extensive custom "user manual" for one of the platforms - the response he got was "do you really expect me to read all of that??"... – please, understand that with such an approach you will never succeed. Yes, we do expect you to read, to think for yourself, we expect you to take trading seriously. Otherwise, don't waste your time and money on Markets, just (as Woody Allen said) “get yourself a foot massage.” Please don't get us wrong, it's possible to make $millions working just 1 hour a day - but that's possible for someone who has already done his homework. For someone experienced. You will not gain any experience by learning the quick tricks of the trade - you will gain it by learning the actual trade industry. So, you must be willing to learn. Learn the mathematical way of thinking to make it your second personality. A Quantitative Trader is someone who can see the opportunities that others don't (only then he/she can become a Senior Trader). And that's achievable only from your own way of thinking. This is why Institutional Traders are taught to think in a special way, so their personalities are changing into "living money making machines" - and that's the pro level, nothing below that. Please, learn that fast, and learn it well.
You need a common sense, basic mathematics understanding, and strong will. You also need the basic knowledge of the platform of your choice and MS Excel. You don't need any programming skills. At the moment, the most used Trading Platform for Retail Traders is Metatrader – so we have prepared our training programmes specially for MT4 and MT5. So you need to be familiar with both Metatrader and Excel, that's all. In our opinion, it’s more than enough to learn and earn. Beginner traders think that for professional trading they need some special magic tools - that is not true. The tool must be adequate to the task. It’s absolutely crazy to use the Bloomberg Terminal for retail trading, it’s like using nuclear weapon to get rid of the annoying fly from an apartment. As traders say, “right tool for the wrong job”. On the level of Retail Traders, the Metaquotes software is just a perfect tool. It has some errors (we will point them to you along the way), but it does the job just fine. The same applies for Excel – it’s a tool used by every pro Trader on earth. It does everything you might want, you just might not know about it. And this is our job to show you that.
Becoming the Quantitative Trader is a process, it usually takes about 6 months to the level of full proficiency (on Forex Markets). But you can start earning money much quicker, it's all down to your engagement.
Interested and brave enough?
Then go to Trading Basics