Elite E Services Newsletter "Hot summer 2006" August 15th, 2006
This is the first, of many, Elite E Services Newsletters. The EES newsletter will be a combination of our global markets analysis and intelligence, business trends in the trading and I.T. industries, as well as EES company updates. If you don't want to receive this newsletter just reply REMOVE.
Intelligence disclaimer: Reading and thinking on an intelligent level carries a high level of risk, and may not be suitable for all humans. A high degree of intelligence can work against you as well as for you. Before deciding to read this article you should carefully consider your objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial knowledge and therefore you should not invest time that you cannot afford to lose. You should be aware of all the risks associated with intelligence, and seek advice from an independent advisor if you have any doubts.
Geopolitical themes
The only certainty in geopolitics right now is uncertainty. The conflict in the middle east has great implications for the world markets, specifically, oil reserves. A war between Israel and Syria could include Iran, and why not American forces? The only other suppliers of oil in the world assuming the arabs fall short are the Russians and the Venezuelan’s, certainly not the closest allies of the United States. How the U.S. obtains it’s energy to top up losses in the Middle East will affect the US Dollar, interest rate policy, and the US Stock market. Also Russia recently announced it will float the Russian rouble, and prefers to sell it’s oil in Euros. If the U.S. needs to buy oil from Russia in Euros, this will decimate the dollar. Everyone assumes that the politicians know what they are doing and will find some way out, negotiate a deal. But history teaches us a different lesson. The road to hell was paved by good intentions, they say.
Traders are very impartial when it comes to politics, however we are concerned that politics may override other themes in the markets in the coming years, especially related to energy and the middle east.
What we can expect is the desyncronization of global markets. For example the US Dollar and US economy has been historically built on manufacturing and agriculture, whereas now the US is a net importer of goods and services, and is outsourcing even government services (offshore IRS processing facilities).
Geopolitics, and global warming, as seen with this summer's heat wave, hurricane katrina, an impending avian influenza, will dominate currency moves for the forseeable future.
New concepts for investing
People get stuck in their ways, used to routines, and they don’t want anything to change. This is nature telling you to make room for genetically different offspring. Research studies prove that doing things different, even if small, can actually increase oxygen flow, health, and intelligence. For example, try brushing your teeth with the opposite hand. Your brain needs to be retrained, creating new paths to new neurons, stimulating you down a new path towards overall well being.
However, as history teaches us, following the routine is never going to accomplish anything other than creating more routine and tradition. When it comes to culture, tradition is one thing. But when you are talking about investing and trading, tradition usually means breaking the fundamental rules of trading, such as getting married to your losing positions, doubling down, etc.
In a dynamic environment, saving for a rainy day is always punished. You think you are stocking up for war, and when the war comes, either you realize your food stock is spoiled, overrun by roaches, or stolen by invading forces who have more ammunition than you. The analogy being, saving is not the only part of an investment arsenal, capable of handling the most dynamic environment capital markets have ever seen.
Germans who were saving war bunds were forced to wheelbarrow worthless German marks to the grocer to buy 1 loaf of bread, hyperinflation had eaten the mark alive. Of course, this could NEVER happen to the United States of America, the greatest country in the world, ruling superpower of the west.
Then, Where to invest? The easy call is to go long commodities, gold and swiss francs. But is it really so easy? At these high prices you want to go long? The only solution is actively traded managed forex and commodity accounts. Opportunities will change so quickly, only trading and taking profits will enable a portfolio to grow and realize consistent gains. Using the right approach, the aggressive investor will be rewarded handsomely. Many traders will not be able to perform in this market, so one must be careful. Others however, will flourish, as they are now. The other approach is automated trading utilizing signal systems and trade robots.
No one would have seen the now obvious retracement of gold from it’s highs, yet that would have been a great trade both long and short. Just investing in gold, isn’t enough – it needs to be professionally traded.
Further investment concepts
When many come into money quickly, without reason, they sometimes buy valueless products such as jewelry or big toys. Nothing wrong with enjoying yourself, but at what cost? It is a fact that 95% of lottery winners are in debt within 1 year of winning the lottery.
If you take the step, to invest in advanced automated investing systems, will it also change the way you invest the profit?
Trends in automation
There have been many developments in algorithmic trading. However, development has been focused on execution rathar than strategy creation. There still are a lack of tools for the algorithmic development of strategies. EES plans to build not only a family of working strategies but tools to build strategies integrated with backtesting.
EES updates: The US company
Elite E Services has opened a US company registered in Nevada for the purpose of establishing ourselves in the US market and becoming an NFA member as a CTA and IB. From our South Carolina trading facility, EES USA will branch out using our national network of IB’s through remote virtual offices. In Columbia, SC EES will open a trading training and education center and retail trading office for clients and investors to trade and see our systems. Also this location will host our trade signals servers. We welcome traders, investors, and developers from all walks of life to contact us. (800) 975-8581 EES USA
Regulatory updates
Websites Update
millfxelite.com – The Millenium FX program, our flagship managed accounts program, performed 3% in July, 1:1. The program is very solid and we are recommending everyone invest in it.
elitefxsystems.com - More developers have been contacting us, and we are bringing them online as soon as possible. One of them has a system that generates 90% positive trades, in real time. Also we are working on a software tool that will execute email signals in Meta Trader environment.
openforexaccount.com - New Account opening tool. EES has established many IB’s since the collapse of Refco, for a number of reasons. It seems you can find everything you’re looking for under one house. This site is where we can direct all new account applications, an “IB TOOL”.
FATS BBS - Our trading forums have a new systems administrator. His name is Bill and his handle is MrTools (you may see him online). Why 2 forums? Quite simply, there are some files you just cant post publicly, and others, you would like to share with everyone.
eliteeservices.net/blog - Elite intelligence, investments, technology, and electronic trading in the global markets. The blog will be an important part of our information service, offered free, in conjunction with this newsletter.
3 Levels of security
Regarding any files, Expert Advisors, strategies, indicators, anything, we have 3 levels of security:
Level 1: Public - Available to all on our public forums. Freely copy and paste and distribute to anyone.
Level 2: Private - Available to paid subscribers of eesfx.com, partners of ees, and developers. Anyone who has access to this material should treat it as confidential.
Level 3: Elite - This material will only be distributed to other parties at the specific request of the owner.
As a group that deals heavily in intellectual property, we take NDA's very seriously. We would not post your confidential strategy on the internet or even distribute it to our partners, without your previous consent.
Compliance and legal
We have a beta contract being reviewed by our lawyers which ALL new parties will sign. It is a combination of a EULA, NDA, and Policy towards strategy use and development.
ees-strategy-CLICK HERE TO VIEW / DOWNLOAD
Policy update
No refunds on code. Clients must understand clearly before purchasing any code that there are no refunds, under any circumstances. Just like when you purchase software in any retail outlet, if you open the box they will not do an exchange, because you may as well go home and copy it and return it and get the money back. Did you copy it? That's not the issue, the issue is you have received the goods and services and there are no refunds.
No Brokerage: EES is not and does not want to be a broker. We do from time to time engage in marketing and brokerage as a part of our boutique business, but our focus is I.T. and the development of trading strategies, trading tools, and trading the markets.
No Competition: We don't see anyone competing with us directly, because if someone has a better system than us, we are interested in using it, purchasing it, distributing it to our interested clients and partners.
Key product development
We have contracted a tool that will allow signals from email to be automatically traded in Meta Trader. There are many signal providers on the net, but there is always a problem with formatting. Most offer email signals as an alternative to their standard signal, and our software tool will take those signals and turn them into trades in your Meta Trader account. It will be offered for purchase for $350 or to anyone trading under house elite. Code name: Signal Trader
IB
EES is now an IB of Dukascopy and North Finance. Dukascopy will be online with Meta Trader within 3 months, they say. Last month Dukascopy leading managed program returned 17%. The minimum investment in any Dukascopy account is 25,000 (contact us to make an exception).
IT update: Computers
The world waits for Windows Vista.
New software website: BlueSquad. A wide choice of software, top quality, low prices, buy and use instantly. Create flash without coding knowledge with A4 Desk Business Edition or buy other software at BlueSquad
Development
The demand across the board is for development of strategies, tools for trading, signals, and programming services. To respond to this, we are doing a restructuring which will be complete soon. When done, we will have several development workstations and developers working full time on strategies.
Reference Articles:
Rubber shortage in 2010 will cause rubber price to shoot up
Bearish Wall Street analysts predict a fall of up to 20pc
Sugar shortage: Enforcement men sent to refineries
Foreclosure filings up 34% in Palm Beach County
Morgan Stanley Global Analysis
Bank of New York Global Markets Analysis
"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." W.Buffett
© 2006 Elite E Services Inc. Elite E Services is an electronic boutique brokerage offering managed accounts, trading systems, and I.T. consulting for the financial industry. www.eliteeservices.net
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