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ssiFX Basic Strategies

Introduction

All of ssiFX Real-Time Systems, Inc. forecasting system trading strategies rely on the fact that the GCB, the GCA, and CSX (currency sets) panels generate forecasts with relatively different strengths and time-horizons. The varying strengths and time-horizons in order of magnitude are the GCB, followed by the GCA, and finally the CSX panel.

Trading strategies can thus be designed to precisely risk-control both the entry and the exit of a trade. This is best illustrated by way of exemplar strategies.

 

The Confirmed GCB, GCA, CSX Entry / CSX Breakdown Exit Strategy (most conservative)

Confirmed Entry

This strategy is implemented by first inspecting the GCB panel for a pair of currencies forecasted in opposing directions. A strong forecast in a given direction is visually and numerically (in absolute or percentage terms) indicated by the ssiFX Core Flows (see sub-menu tab Forecasts Page).

The scope and intensity of the confirming Core Flows can be determined based on the risk-tolerance on a specific trade. Other indicator groups/columns in a similar direction simply add strength to the forecast.

Once a pair of currencies have been identified as having strong opposing GCB forecasts, a similar exercise is conducted on the GCA panel for the exact pair of currencies. Once the pair have been observed as having similar strong opposing GCA forecasts, an associated CSX panel is examined for a confirming forecast of the corresponding currency pair (consisting of the opposing GCB and GCA currency forecasts).

A GCB forecast confirmed by both the GCA and the corresponding currency pair within an associated CSX panel, is a ssiFX system signal to execute a trade in the direction of the forecast.

 

Breakdown Exit Strategy

Once a trade has been initiated for a currency pair using the Confirmed GCB, GCA, CSX Entry strategy, the CSX panel is monitored for a breakdown of the currency pair forecast. A breakdown is defined as an indeterminate ssiFX Core Indicators, [specify...] pattern. A breakdown of the currency pair forecast is a ssiFX system signal to exit the trade.

 

The Confirmed GCB, GCA, CSX Entry / CSX Reversal Exit Strategy

This strategy is similar to theConfirmed GCB, GCA, CSX Entry / CSX Breakdown Exit Strategy except that trade exit is effected only when a CSX currency pair forecast reversal as opposed to a forecast breakdown occurs. It is therfore a relatively less conservative strategy than the Confirmed GCB, GCA, CSX Entry / CSX Breakdown Exit Strategy.

 

Other Basic Strategies

One can extrapolate the foregoing to derive a large number of feasible trading strategies with varying degrees of risk. All strategies exploit the relative forecast strengths and time-horizons magnitudes of the GCB, the GCA, and the CSX forecasts, respectively.