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Suggest more detail for gain function & Security suggestion Discussion

fancypants (fancypants)
Oct 13 2009 at 16:19
1 posts
1. The 'simple' gain function does not discriminate for a trading system that adds funds...these are treated in the gain function as if they are trade performance related. This gives the false impression that a system is making profits but are only resulted from depositing funds. My first clue was observing some of the systems that were showing incredible gains over a short period. An experiment to deposit several multiples of the initial capital in the demo account showed this flaw also.

2. A sharpe ratio function should be implemented as it measures risk and performance. It is an essential industry standard. It would be really nice also if this could be separately calculated on

1. long only
2. shorts only
3. individual currency pairs.

this would allow the trader to measure and to locate what kind of trading within the entire volume of trades are more effective than others.


II. Another suggestion is to show separately how much of the gain/loss is derived from interest settlements. In this way, a strategy that is planned and executed with an interest arb method can be measured solely for that purpose, and likewise, other systems that 'ignore' int arb, would also be measured to see how effective they really are, when int gain/loss are calculated. It would be another level of detail to show the effects of interest (other than simple price risk).

I think you product is very good btw. I am somewhat concerned with security however. I am not sure how confident a professional OPM trader and his clients would be, giving account transactions details and more specifically, account passwords to your third party website.

Here are some suggestions:

1. create a manual file option, as input data. Trader downloads the trans history through their dealer. Makes .txt file, or .htm...and then uses that file as input. This would eliminate the risk of writing an account password to your website form field and the obvious security issues with having all of account identity in the wild. Because IT WILL HAPPEN...NOT IF! Security hacks know what I am talking about. Nothing worse than having a compromise and the dealer tells you...sorry, we did not authorize that...YOU DID! ouch. it only takes only mistakes.

2. Work with the dealers to create a separate 'read only' access password for direct internet account access. This is something that would be much more helpful in other areas also, as many traders who are directing opm funds, would prefer to give clients full access to account trans & history directly to their dealer servers anyway...But something short of permissions to change or modify trade operations...Imagine a client how wants to have 'hands on'...more common than some believe is true. The answer? Sometime in the future, here is a conversation taking place:

T: here is your account trans/history read only password. You can read, but you can't touch.

OPM: great, that is what I want. I want to see what you are doing and KNOW that the performance is what you tell me that it is, so I can get account details.

T: you might also want to look at another independent review of that data, where you can summarize the raw data...It's called, myfxbook...use the same read only password and there you go!

OPM: wow! magic!


:-)

aloha
forexhaole


Staff (Staff)
Oct 13 2009 at 16:33
1389 posts
forexhaole, thank you for your suggestions.


fancypants posted:
    The 'simple' gain function does not discriminate for a trading system that adds funds...these are treated in the gain function as if they are trade performance related. This gives the false impression that a system is making profits but are only resulted from depositing funds. My first clue was observing some of the systems that were showing incredible gains over a short period. An experiment to deposit several multiples of the initial capital in the demo account showed this flaw also


This is the reason two types of gain calculations are used: cumulative and absolute. You can read more about it here: https://www.myfxbook.com/help#help_11

fancypants posted:
... I am somewhat concerned with security however. I am not sure how confident a professional OPM trader and his clients would be, giving account transactions details and more specifically, account passwords to your third party website.

... Work with the dealers to create a separate 'read only' access password for direct internet account access. This is something that would be much more helpful in other areas also, as many traders who are directing opm funds, would prefer to give clients full access to account trans & history directly to their dealer servers anyway..



We do not ask <b>under no circumstances</b> for any kind of login information such as user names or passwords . Our platform is solely based on a <b>read only access</b> to your trading account.

Moreover, when viewing your private data, the connection is encrypted with a 256bit encryption - this assures the safety of your data.

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