Everything to Know about Quantitative Finance

In this article i would like to write about the new technology & research, which is called the High Frequency Trading and Quantitative Finance.


Firstly, we have to know what is exactly the Algorithmic-Trading. Algorithmic-Trading is based on sophisticated mathematic calculus, which is able the Algorithm to achieve more than 90% of the trading time profit. It is also connected to the field of High Frequency Trading and implemented by Forex Robots, that are trading with many open orders at the same time on the both directions – buy and sell side.


Quants are people, who have learnt the based mathematic and are developing better profitable Algorithmic models in the financial markets. Due to the Algorithmic-Trading algorithms are using complex mathematical models, it enables the overall model to be less risk than investing in the shares markets !

Over the time the Algorithmic-HFT model achieve a higher gain than the conventional investments instruments, such as saving account, shares as well as real-estate.


Secondly, many believe that all it takes to succeed in school, get a good job and get a high salary. Indeed, good pay is an important part of the formula for creating wealth – but in fact it is just one part of the three to create the wealth. The other two are: Time and a high gain on investments. Most people are well aware of the importance of the first section. Except that, there is interest in return for most people ignorant. I think, actually gain is the most critical part toward creating significant personal wealth. Physicist Albert Einstein once said that the most powerful force in the universe is compound interest ! But what Einstein knew even then, many do not understand to today. Ignorance of most of us about the power of the compound interest always surprises me.


Thirdly, I remember that when I was just beginning to develop Trading Robots for Managed Accounts at Engineering Investments House, I was very excited by the fact that you can make a gain of 50% and more per year !


You might be surprised that the quantitative financial’s models could do so much high gain as well as might also think the risk is also high, but due to the Algorithmic-Trading is using the High Frequency Trading model, therefore the overall risk is lowering over the time !


Finally but not at all, the rich people are well understand the power of the compound-interest. They know that to get rich, they should maximize yield as much as possible. Investing their money in their business, Forex market or real estate. You will not find a lot of rich people, who are investing at savings plans or hold millions of dollar in their liquid account.




Algorithmic-Trading in Action…

In this post, I will write and explain about what is really Algorithmic Trading and how it is being implemented by Engineering Investments House.


In addition, you could also watch below at the interesting video about an Algorithmic-Trading Robot in action. Many people, who have somehow heard about the new and advanced financial technology, which is called Algorithmic High Frequency Trading.

Although in the reality the financials markets are very vivid and unexpected we have developed an Algorithmic-Trading program, which runs 99% of the time without any professional trader, who is always monitoring and controlling it.

Normally, our advanced and a proven-track record Algorithmic-Trading program runs about 99% of the time without any intervention from the professional Forex trader.


At the below video you could see the advanced Algorithmic-Trading program in action…





It is based on earning money from the little differences among EUR/USD currency pair. As we have seen, EUR/USD pair is 1.26000 and later will be 1.26300 therefore the Algorithmic-Trading program earns money from buy at 1.26000 and sell at 1.26300, but it also sells on 1.26300 an extra quantity. In general, our Algorithmic-Trading program is normally trading on the both sides simultaneously !


As you have read in the Great Secret of the Rich , and then you understand how much it is important that you could gain much more than the real inflation, just by contact us for a High Gain Forex Managed Account.

How to Measure Real-Time Risk in a Forex Managed Account ?

When i get into an aircraft, i like to see some gray hair on the captain. It gives me confidence and puts a smile on my face as I settle down to my first drink. My assumption is that he has been around a while and likely to have seen some spooky times. It is not different with the Algorithmic-Trading Robots in Managed Forex Accounts.


In this post i am writing about a risk – how it is calculated today in the Forex managed accounts and how to calculate a better real risk measurement, that I have specially developed for the Forex trading. Risk – this term means many things to many people, but in todays Forex market a risk is mostly defined as how much drawdown has to your investment portfolio.


For example, during the life time trading of the Engineering Investments’s portfolio, its has a drawdown of 692€ In the below chart we could see the MFE and MAE distribution graphs of this investment portfolio.


Maximum profit (MFE) and greatest loss (MAE) values are recorded for each open order during its lifetime.


These parameters additionally characterize each closed order using the values of the largest unrealized potential and most permitted risk. MFE/Profit and MAE/Profit distribution graphs display each order as a point with received profit/loss value plotted along the X-axis, while most displayed values of potential profit (MFE) and potential loss (MAE) are plotted along the Y-axis.


MFE and MAE Distribution Point Graphs
MFE and MAE Distribution Point Graphs.


The above drawdown of 692€ has included the both sides of the hedge trading (when exists). It means we have to deduct the smaller side from the greater side drawdown, and then getting the corrected drawdown.


In addition, we have to know the value of the CCI Indicator.The CCI indicator is very useful when we are about trading with commodity, as well as the CCI is correctly adjusted to our trading time frame. It just gives us the chance that the current trend will be turned over.


Now, we could use the below formula to get the real risk of our current trading portfolio, that I have called it RR:


Robin Risk Formula for Forex Managed Account


Where Lambda = 1000 =  Systematic Risk Coefficient.


In Engineering Investments‘s example we have 692€ drawdown which should be corrected to 650€. Now, we divide the 650 by the portfolio equity, which is 3200€ To calculate the theoretical risk we begin with 650/3200 = 0.20 (20% which is named as drawdown) and then multiply this with the currently CCI, which in our time of measure was 120.


The calculation is : (650/3200)*(1-(200/1000)) = 0.1625 = 16.25% , which is the Real-time Risk or Robin Risk in the real-time is been calculated in this portfolio. The 3.75% difference is about 23% smaller risk in the portfolio !


Moreover, in the next posts i will write more about this important subject, as well as how this formula has been implemented on the below portfolio, such it enables us to get a high gain on investment with the lowest risk !



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The breaking of the Nationalbank of Schweiz – A Black Swan ?

— A Special Edition —


On the 15th January 2015 the Switzerland National Bank – SNB – has decided to get out from his 1.2 EUR/CHF defending line. It means that the CHF could be stronger as much as the market is deciding. I am confident that you could read a lot about this subject in many economical newspapers. But Engineering Investments would like to share with our faithful readers about several important subjects on this special event.

As the 1.2 EUR/CHF has been fixed as a bottom line for defending the Switzerland export, then the market participations have just opened many Buy orders, when the EUR/CHF has been traded near this price line. It means the buyers “know” that they could not lose too much… therefore this line has been strong till the heads of SNB have understood, that if they will not say no more 1.2 EUR/CHF line now, then later on it would be a bigger price movement much more than we have seen on the 15th January !

To see how big is this price movement, i think an one picture is more than 1000 words…


The Frank and the SNB
The graph of GBPCHF

For all the market participations this big event is absolute a black swan. But, as you have seen at Engineering Investments Engineering Investments High Gain Managed Account. has gained about 70% during the Black Swan event ! How ?


To get into the full understanding of how a black swan could be a good event, we have to understand that our Algorithmic-Trading is usually making gain by trading against the market direction. But for this special event you have to also read our latest article on the 10.01.2015, which had discussed exactly about this subject !


Moreover, as a professional forex trader and along the high volatility of the GBPCHF i had to stop several times the algorithm and to open a sell order on the GBPCHF, which has being opened over a long time, just because the intuitive of a professional trader has shown about an absolute abnormal situation !


Engineering Investments is not saying that we have found the holy-grail, but only that we are always minimize the overall risk and maximize the gain for achieving the best high gain investments over the time !

Open your Real Managed Account
Open your Real Managed Account

The First Milestone – A Volatility with High Gain Performance

2014 has just passed and the fourth quarter of 2014 is behind us.


Right now is the time to write about the first milestone. We can talk about Engineering Investments’s High Gain Portfolio Performance for the last quarter of 2014 and about the main events… Before we begin with this analysis, we have to understand, that mostly the Algorithmic-Trading techniques are complicated and therefore, we will expect for many questions from people, who are not professional at Forex Market.


Let begin… the bottom line is about 17% gain in the last quarter of 2014 ( is also used partly for testing Algorithmic in Real-Time ), that is very good for the beginning, and therefore with this advancement we will expect to achieve about 80% gain investments in the end of 2015. In normal situation, our Algorithmic-Trading algorithm is trading on the three different pairs simultaneously: EUR/USD, USD/CAD and GBP/CHF.


The GBP/CHF pair traded with much volatility, means that we had to stop in several times the algorithm and to trade manually.

GBPCHF daily priceWith this picture of GBP/CHF I will try to explain here about the techniques to cap with this GBP/CHF pair volatility, as well as to gain a lot from its volatility. GBP/CHF high and low price are 1.55400 and 1.50000 for us. It means that inside these high and low prices our Algorithms trades and when the pair touch one of the high or low price then we have just buy half lot in the long and sell half lot in the short direction.


This gives 100% securely to our high gains and enable us to close the long or short positions also with profit, when the pair has just been in moved in a reversed direction… At pair EUR/USD currently, the Algorithm is always trading at short direction, means that when the pair is going up then the Algorithm is selling more lots. The easiest pair is USD/CAD, which is such as an old woman… the Algorithmic-Trading is trading in long and short, which yield good gains.


I would like to give more explanations about the core events as simple as possible… but the main point is that we are in a correct direction toward a high gain 2014 year.  Wish us a wonderful high gain investment – 2015 !


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