Elite E Services January 2007 Newsletter

Elite E Services Newsletter February, 2007
Forex Disclaimer: WARNING! Foreign exchange is risky! There is a very high probability that you could lose some or all of your investment. Therefore, forex should be taken with a grain of salt, by only the elite, sophistocated investor. See Risk Disclosure

Elite Expert Trader

Elite Expert Trader is a software plug-in for the Meta Trader software platform. It includes a portfolio of automated trading systems which have been in development and trading for years. All the strategies include options that users can adjust the lot size, risk factors, and more. It is possible to optimize each strategy for specific time frames and crosses you want to trade, or you can use the default recommended settings. Why rely on a single EA that may or may not perform?

Elite Expert Trader is a suite of Expert Advisors for automatic trading in the forex markets, using the Meta Trader platform. This package includes a portfolio of systems which can be traded by clients at their discretion. Also included are support tools, trading articles, instructional videos, access to premium web area, podcast, and tech support.

It installs Expert Advisors and necessary support tools to enhance your trading in Meta Trader. Elite E Trader will get you up and autotrading with Meta Trader as soon as you can say "Expert".

Every month, new strategies are added, and old ones are updated. That means you will be provided with at least one new trading strategy each month. No static strategy can work for years without updating - some strategies go through 10 versions before they become robust enough to trade live funds on. Our approach toward autotrading in Meta Trader is that of diversity. We are not offering the holy grail - nor is this about money management. If you want to invest in forex and not bother then you should open a managed account where professional money managers handle trading for you (even if it is automatic). Elite Expert Trader is offering a full autotrading solution using the Meta Trader platform.

Searching the internet for working Expert Advisor systems? You likely will find hundreds of non working ones before coming accross anything decent. Is it really worth your time, when you can download and install working EA's from a professional development company?

Elite E services is registered with the NFA as a CTA who offers trading systems. EES has been in business officially since 2002 although we have been trading for over 10 years and our team has a combined 100 years experience trading electronic markets. Through extensive research we have comprised the world's leading forex programming and trading team.

Elite Expert Trader will be updated every month through eesfx.com - any purchase of the software receives an account at eesfx.com, our support and trading portal.

Autotrading Results

If you are trading Vermillion FX Trader you can use these optimizations by copying the settings from "Parameters" such as for EUR/GBP:

dLots=1; dStopLossUSD=350; dTakeProfitUSD=850; iBBPeriodFast=21; iBBPeriodSlow=20; iBBDeviation=2; magicNumber=202228;

Fresh look to Global FX Radio

Trade Robot Client

Elite E Services introduces the FX Trade Robot; a fully automated order execution system for the Forex market that will place your Trading system's signals, or one of our System Provider's signals directly into your dealing station and then manages your trades.

Developed by traders for traders, the Fx Trade Robot was developed to overcome the human limitations of systematic trade execution such as fear, greed, fatigue, and the psychological factors that affect traders during trading.

In addition, it has the ability to execute trades in multiple markets and on multiple strategies that would be physically impossible for even a large group of traders to accomplish.

Now traders with or without trading systems can take advantage of the benefits of trading with the FX Trade Robot.

Remove Emotions of Fear, Greed, and Worry
Reduce risk and improve overall system performance
Execute your system the way it was designed
Never miss a trade again
Avoid embarrassing and costly trades due to fatigue
Finally get some sleep and protect your health
Faster and more accurate trade execution
Spend more time with your family
No more waiting through non-trending markets
Trade multiple strategies and markets
Takes advantage of more trading opportunities
Save time
Trade more accurately than a team of traders
Easy to use

Forex Automated Brokerage

The financial establishment, defined as large banks, brokerage houses, and multinational financial corporations such as Goldman Sachs, JP Morgan Chase, Citigroup, Deutsche Bank, etc., think that speculating in FX is a useless activity because 'there is no money in spot forex'. They trade bonds, stocks, futures, options, and newly formed exotic derivatives such as Swaptions (Options on interest rate swaps). In their view, you cannot make money by trading money itself, and foreign exchange is not a speculator’s market like the Stock market is. These companies control trillions in client capital, and they have very few, if any, clients trading in managed forex products. The traditional financial establishment considers forex to be something not worth investing in or developing strategies for. Why they have this view is another discussion, here we are simply describing the current forex business environment worldwide and stating facts as we know.
Velocity 4x, FXCM, Gain Capital, GFT Forex, Interbank FX, and others, are rogue companies founded by various kinds of people, sometimes FX traders who came from desks at reputable established firms such as Credit Suisse. FXCM was founded with $500,000 in 1999 and in 2007 they will likely see over $1 billion in revenue. The brokers have been exploding in all measurable ways, and this is going on quietly without the consent of the real players in financial world, the big names. Yet, FXCM was spending 4 million a month just in Google ads! www.cnn.com is flooded with FXCM ads. They open 4,000 new accounts per month. Since Forex is unregulated, and because there are no rules as to how you need to trade or clear forex trades, the costs of opening a forex brokerage are 1% to 2% that of a traditional brokerage, such as a Stock Brokerage. In fact, a forex brokerage is now comprised of a series of servers, and support staff. Each broker in current operation has taken a very distinctive and different view as to how to run a brokerage. A Russian company “MetaQuotes” offers a boxed solution to purchase their product “MetaTrader” for $150,000 which can manage the entire order flow of the clients and back office as well. Meta Trader offers “Expert Advisor” trading systems which are automatically executed forex trading strategies. Clients using MetaTrader are free to develop and trade their own strategy. The advantage of MetaTrader is that it is a standard of auto trading so a client can take his strategy to another broker and trade it. The huge disadvantage is that the software itself has many inconsistencies, and you always rely on the MetaTrader package although they do not make public any technical documentation. It is fair enough that Microsoft does not open its code to the public, but when a trade goes against you and you lose $25,000 you have no way to explain it (because the strategy does not do what you program it to). The problem is that you are limited to the confines of MetaTrader, which is by no means a bad software package. It is however limited in its features and also there are liquidity issues with many brokers that are unresolved. There are a growing number of traders who have automated systems that brokers cannot provide enough liquidity for. That means their infrastructure cannot handle their strategy. They have the money and are ready to trade, if we can offer them more sophisticated software solutions for the clearing and execution of their trading strategies. It is our proposal to fill this need. We understand the need because we are traders and programmers, we do not come from brokerage industry. It is also for this reason why we can implement this concept and the brokers cannot. They feel they are doing more than enough for clients like us, although there is a large gap they cannot fill. Aside from traditional business infrastructure (offices) we would require a specialized programming team and computer hardware in order to create this company. Out of the box servers would not be appropriate for example. We should design custom servers using CELL processor technology, combined with a cluster of Blade Servers running various tasks such as strategy execution and risk management. It would take us 18 months to finish the complete model, but if we develop in stages we could begin making money after 8 months. That means we will develop module by module, finally finishing with complete money management brokerage software that is completely integrated from the client side to the back office and administration. Liquidity: Our liquidity can be sourced in several ways but it is not a large issue. Various brokers offer API connections which we can plug into our clearing module. That means we can actually clear our trades with other brokers! In this sense we would be creating a global forex ECN (Electronic Communications Network) that would be a new kind of forex market. As new brokers offer liquidity, we can add them to the list of providers. In this way, we can maximize our liquidity potential and minimize our capital risk and technical risk in the event any single provider goes down. Some of the providers may be banks, Currenex, or other ECN’s such as Hotspot or EBS. The multi-provider approach is in our view, the only appropriate solution for sourcing FX liquidity.
How to find clients? Clients will find us. Our concept will be unique and the automated trading community is a small one. Word will spread quickly that there is a ‘techie broker’ who is actually doing things properly. We should be totally private, not have a public website, and have a $100,000 minimum. EES has existing clients who would open accounts in this brokerage immediately. Weakness of traditional brokerage: For many clients, traditional brokers are working very well. This project is not about picking apart the fallacies of the bricks and mortar brokerages that exist. Rather, we are pointing out what these brokerages lack, most significantly, they cannot cater to a number of automated traders who have a lot of trading capital to invest. Risk Factors: As we are developing a business out of a need displayed by traders and programmers, the risks of this project are very low. We know what customers need and are providing them a service at a fair commission sharing revenue model. We always run the risk of some major market shifts such as the world abandoning the floating FX system, where currencies are pegged to each other. In that case we imagine we could use our system on other markets. Our Client Advantage: The niche of system traders is the most profitable in the business. Because they have calculated systems that usually create large volume. 90% of the profit and trade volume is created by 10% of trading accounts. Our brokerage is targeting those 10% of active accounts, so we will have fewer clients in numbers but those few clients will generate 10x the volume than normal clients. Revenue See this below account statement as a reference for revenue and our client model.
jorgka

http://forex-automatic-trading-systems.com/systems/metacutor9001/DetailedStatement7a.htm
This system generated in 2 days, $11,595.00 in commissions for the broker and $4,190.85 in profit for the client. This client alone could generate $3,061,080 million in profit per year for us, assuming 264 days in a trading year. That is of course assuming the account remained at the same level of activity, and it is very safe to assume that as the client is profitable he would deposit more funds and the activity would increase. If we could find 10 such clients, our revenue for the year would be $30 million our first year. If this account was funded with $500,000 instead of $50,000 you can add a zero. So only 10 clients trading in this fashion would generate $300 million in revenue for the firm without doing any marketing, and we know more than 10 people who have this interest, money, and capability.

Development Group - Google Groups

EES Forex Developers is group of people that develop FOREX strategies on several trade platforms including specialized trading platforms.

Hot Sites

For Developers

This newsletter can be accessed in its entirety from this link:
http://ees.net.nz/info/ees-newsletter/ees-02-2007-newsletter.htm

Risk Disclosure
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

We have contacted you because you have at some point corresponded with Elite E Services or signed up for our newsletter. This message is an informational newsletter, not a commercial advertisement. It is compliant with all federal and state laws regarding e-mail messages including the California Business and Professionals Code, . We have provided (mailto:info@ees.net.nz?subject=REMOVE) e-mail contact so you can be deleted from our mailing list. Elite E Services USA mailing address is Po Box 1436 Swansea, SC - Our NZ office address is 80 Lichfield Street, Christchurch, New Zealand, and our website address is www.ees.net.nz ees.net.nz

Elite Expert Trader

Autotrading Results

Fresh look to Global FX Radio

Trade Robot Client

Forex Automated Brokerage

Development Group - Google Groups

Hot Sites

For Developers