frequently asked questions
1. How can I be sure that no-one will make off with my money?
In no way can anyone make off with deposits in brokers’ accounts as they are segregated. Segregated means the money can only be returned to the account it came from. The depositary bank guarantees that the account is inviolable. The broker, with the client’s prior authorisation, can only move money to financial instruments.
2. I have heard of more than just one person who has “burned” the entire investment trading. Can this happen to who decides to invest through your trading systems?
No, that cannot happen with our trading systems . It would only be possible to lose all the money invested if the manager were to use a financial lever of over 10. The financial lever set by us is maximum 3. Losing everything would mean closing at a loss for 100 days in a row, just about impossible. The Drawdown, the most negative point, has never dropped below -12,5% for our trading systems.
3. Why is it important to keep the drawdown value low?
The Drawdown is the point of maximum negative fluctuation recorded in a trading system’s activity period. This value is fundamental as it expresses the maximum loss risk. Naturally, to make sense, it must be compared to the return in the period considered. A -25% Drawdown, if compared to returns of 120% is a positive value. If compared to a 10% return, the value is extremely negative. On the whole, it must be the lowest possible and no higher than a third part of the return expected.
4. What does trading online mean?
Trading on line means buying and selling financial instruments on line directly from remote workstations. Before internet, these operations were only possible by going to the Stock Exchange or to the bank, with decidedly different costs and times.
5. Nowadays, earning with online trading is a consolidated reality, but believing what is written in a website and investing your savings is a deed of great faith. How can you extricate yourself amongst all the offers available?
Financial Trading Strategies establishes a transparent, explicit relationship with its clients, trying to provide all the instruments needed for a well-considered, responsible choice. We believe we can gain our clients’ trust over time, through results, and are strongly determined to create lasting relationships. For that purpose, we advise our new clients to test our trading systems with minimum capital and increase it proportionately as their trust in us grows.
6. Is it true that it is difficult to lose over a long term and how long is long term?
The possibility to lose over a five year period is very low as our trading systems protect capital against unlimited losses, leaving it to grow at positive times. By long term we mean 5 years.
7. If you say that your trading systems’ risks are low, how are they considered risky investments?
Any kind of investment is by definition risky. Risk control is a priority on our instruments. Before using the money, we already know what the potential loss is. Fundamental when creating a strategy.
8. Can a broker go bankrupt? If it should, what would happen to my savings?
Yes, a broker could go bankrupt. In that case the clients’ money would remain available in their accounts. Client deposits remain in a segregated fund with the depositary bank which guarantees the fund itself. In any case, our broker partners are amongst the most solid, efficient financial intermediation structures in the world.
9. I have been trading for over 15 years. Tell me more about your strategies.
Trs Moderate is based on macro-economic and cyclical analysis, identifying the medium term trend. Analysis generating the signal consists in:
- Analysis of variables needed to assess a State’s economy such as GDP and its components: consumption, investments, imports and exports, unemployment, industrial production, monetary mass;
- Analysis of monetary flows through exchange rates and stock exchange volumes; these are extracted for each single share out of a basket of 2500 European and American shares and are then summed to obtain the demand/offer differential;
- Cyclical analysis through Hurst models and the Frattali theory applied to the stock exchange.
Analysis identifies the demand/offer differential; based on that, Long or Short positions are opened respectively if the monetary mass is entering or leaving the markets. Signals are 70% reliable; in fact, long term Trs Moderate has proved to be a highly positive instrument. (see historical performances )
Trs Aggressive identifies the trend in a stock exchange day during which one or two operations are carried out. Signals are generated by the trading system automatically and executed by our traders.Analysis generating the signal consists in:
- Statistical analysis of the historical trend of the financial instruments used for trading, to calculate the drawdown and the potential positive performance;
- Cyclical analysis through Hurst models on very short time-frames and volumetric analysis to identify the day’s maximum;
- Quantitative analysis to identify the most suitable trading instrument moment by moment. This approach gives you highly reliable signals that can implement annual, above sector average performances . (see historical performances )
10. I have heard of signals that can earn you over 500% per annum. What is your opinion?
Those who decide to believe in these prodigious signals sooner or later, usually sooner, lose everything. These signals always have really high levers and a lot of positions open; the “non strategy” is to close the positive positions and leave the negative ones open. Doing that, in the first period the gain grows exponentially, attracting investors; but is destined to fail from the very start. If you were to close all the positions, profits accrued till then would be lost and part of the initial capital, all in the best of the hypotheses.
11. Why were your products only for institutional clients in the past?
Our products were born for institutional clients because, before internet, this type of activity had high costs which could only be managed by Banks, Sicav (variable capital investment companies) and Sim (mobile property intermediation) Nowadays, thanks to the online platform and to mirror systems, management costs have dropped decidedly, as has minimum capital that can be invested.
12. Are you developing new signals?
Yes, we are developing several financial signals for both the Moderate and the Aggressive segments. All the signals, before being offered to a client, are tested for at least one year.
13. I am willing to risk a bit more, for greater profit. What’s the right signal for me?
Trs Aggressive. This product is aimed at maximum capital growth using the financial lever and daily operations. The client can then decide to double exposure doubling earnings and, consequently, losses, if there should be any.
14. On withdrawing all the capital or just the interest, it is returned to my starting account. And if I wanted to credit the money to another account?
Our brokers’ platforms can only send the money back to the original current account. But if the holder proves that the account has been closed, the money can be sent to another account as long as he/she is still the holder.
15. What is the broker’s role?
The broker operates on the financial markets. Following a request from a client, he/she searches for a counterpart for each operation. Thus the broker only operates on behalf of third parties not for its own positions.
16. How can interest be withdrawn?
Interest can be withdrawn at any time and is deposited in the client’s bank account directly.
17. What is the Master Account?
The Master Account is the account on which the trading systems effectively operate. Through the mirror system, all client accounts copy operations carried out.