What kind of trading does SMI run?
What kind of trading does SMI run?
As detailed in In which assets does SMI operate? We operate, with fully automated trading algorithms, on the 28 pairs resulting from the crosses of the 8 main currencies. In the first 10 months of activity our robots have opened trades on all 26 target pairs.
We only generate operations in a 4-hour and 24-hour timeframe and we try do not carry out transactions during the hours where spreads are opened. We also do not operate on weekends for the same reason, despite the systems can be operational and active 24x365.
We actively work the 3 trading sessions, the trading volume is distributed in
SMI only closes operations as explained in How does SMI manage risk? either by reaching the Take Profit (or the Stop Loss), or because the opening conditions of the operation are no longer met.
Regarding the time of exposure to the market, SMI carries out operations that last from a few hours to operations that can exceed a week in duration, with an average per open operation of aprox. 2 days (in late May 2022).
Regarding the trading volume, SMI is designed to carry out 2 per day , we initially rule out that the number of operations may increase significantly, but if even so, in order to meet the portfolio's risk objectives, the operating volume of all systems would be reduced to compensate for the portfolio's risk.
SMI combines trend, anti-trend and mean reversion systems. Systems with win-factor from 20% to 75%, in fact once we have operating systems with high reward-risk objectives with low win-factor, we seek to implement opposing systems that work with high win-factor and consequently with objectives of low reward – risk (even around 0.5).
Our systems work both on the long side and the short side, all with the aim of maintaining full operation under any market environment.
SMI has active and passive safety elements. So far these elements mean that we have not had a month with a loss of more than 5.5% (the internal objective is set at a maximum of 15% drawdown).
At any time you can consult the SMI data updated in real time and audited by Darwinex at the following link: