Analytics
The forex market essentially activates 24 hours per day, five days a week and only closes over the weekend. In comparison, equity markets are open for business less than ten hours per day which does comprise pre-market and after-market trading. The forex market is the most liquid and the most traded market with over $6 trillion worth of assets being exchanged every single trading day. Each company around the world is involved in one form of forex trading and it has attracted the most amount of retail dealers. There are several ins and outs for that which range from ease of access to profit potential and from solidness to possibilities. No other financial market can support small as well as big traders boost their earnings as swift as the forex market.
Since dealings can take place around the clock, it is significant to keep way of progresses and appreciate how they will affect currency pairs. The forex market is regionalized, but very connected. Events that happen in Asia and impact certain currency pairs can carry over into the European as well as US trading sessions. This is one of the biggest reasons why daily forex analytics matter. Our forex analyst scans currency pairs in order to find profitable entries into trades. Through the analysis, patterns can be identified as well as discrepancies in correlations between currencies which allows for increased profitability.
The forex market often retorts to geopolitical events or economic new releases the fastest. This is another reason why the continued analysis of the forex market is obligatory. This goes beyond simply recognizing a profitable trade set-up. After a currency pair has been marked for a trade, the other forex analyst sends the trade to our portfolio manager who is then accountable for the risk management of the trade as well as for the trade placement. The analytical part and the execution part are usually separated in order to avoid a conflict of interest or unfairness towards a certain trade.
As our analysis of the forex market is continuing, changes in a previous trading approval may need to be altered. As our analyst recognizes such a variation, it will be interconnected to the portfolio manager in order to make the essential amendments. They include adding to existing trades, hedging those trades and amendments to stop loss and take profit levels. The forex market is a very lively market and required the attention of skilled professionals in order to maximize trading results and reduce the risk taken and yes, we have a team of analyst and can make continuous profit in this challenging market.
Our analytics forex task can be broken down into two parts. The first part is the fundamental aspect of the trade. This includes financial news releases which can have a significant impact on currency pairs, especially in the short-term. A trade set-up can be influenced by the results of an economic release and forex traders as well as analysts need to monitor the economic calendar and account for the probable impact. The most market moving releases include inflation reports, primarily the CPI, GDP reports as well as employment reports, especially the monthly NFP reports out of the US which is released on the first Friday of every month.
The second part our company is comprised of the technical characteristic of the trade. This is used in order to recognize the best trade entries, calculate lot sizes and mark stop loss as well as take profit levels. When conducting a technical analysis of a currency pair, chart patterns as well as candlestick formations play an important role in order to accurately assess where price action is headed next. Technical indicators are also often used in order to confirm trading signals. A full analysis will consist of both, the fundamental as well as the technical part, in order to get a complete depiction of the currency pair and where price action will move to next.
Risk management
Risk management is at the core of our institution, and the Risk Department was created at the same time fxTsignals hedge-fund was established. We manage our portfolio within the levels of risk defined by the Supreme Council for Economic Affairs and Investments and fxTsignals's Board of Directors.
fxTsignals has implemented a comprehensive risk management framework that adheres to international best practices. Our approach to managing risks also takes into account the Generally Accepted Principles and Practices for Sovereign Wealth Funds (the 'Santiago Principles') issued by the International Working Group for Sovereign Wealth Funds.
The overall investment objectives and risk tolerances for the investment portfolio managed by fxTsignals are as defined by fxTsignals's Board of Directors. Specifically our Board has defined investment return objectives in addition to a risk appetite statement that sets out both the types and level of risk that the Board is willing to accept in pursuit of these return objectives. fxTsignals manage the investments in the portfolio within the risk limits that are consistent with the overall risk appetite set out by the Board. The Risk Management, Legal department reviews progress and compliance with the Santiago principles on an annual basis.The risks to which fxTsignals is exposed can be categorized as Investment (Market, Credit and Liquidity risks) and Operational risks. Our Risk Management Framework provides a structure for the identification and management and reporting of these risks.
