Quantised Trading Desk

QTD is no longer available for sale.

Quantised Trading Desk (QTD) is an assistive market timing and risk management expert systemsoftware in a subfield of artificial intelligence that uses a knowledge base of human expertise for problem solving for automated foreign exchange trading.

Introduction

Wouldn’t it be productive if independent portfolio managers and traders can delegate their work and employ trading specialists to focus on specific parts of a thorough vertical trading process? We would be able to focus on our trades and not be distracted by the many intricacies of portfolio management in the heat of the battle. Quantised Trading Desk enables this freedom in the form of an assistive-trading expert system.

Pick an instrument. Choose a direction. Go have a cup of tea.

Initialising screen

Quantised Trading Desk is a program built to scratch a need. How do you trade a 24 hour market when you can’t stay at the screen 24 hours a day? Or are you spending too much efforts timing your trade entries and exits that you’re missing the big picture and the big money?

With the use of QTD, you …

  1. choose a currency position that you want to take based on your own analysis
  2. set a percentage risk level that you are comfortable with
  3. then, let the program monitors the market for you 24 hours a day to time your trade entries and exits while optimising your idiosyncratic risk to reward ratio.

QTD is not a program that trades for you; rather, it is a program that trades with you.

It’s like having another trader at your command.

In an ideal world, we can have our own legion of trading specialists like in a hedge fund to do our bidding. Nonetheless, we can exploit the fact that much of trading is very quantitative in nature because of the inherent numerical basis of the financial market. QTD enables small teams and individual traders emulate a hierarchical trading process by employing a trading desk expert system to your team without having to pay for a trader’s salary.

Aside from supplementing your trading process, QTD can be used to complement it too. Even if you are a competent one-man army, you can use QTD to place hedging bets on your less-observed currencies to reduce your systematic risks. It is simply a matter for you to identify a candidate hedging currency, assume a long or short bias, then let QTD seeks the best entries and exits while you do your regular trading in your primary currencies.

The possibilities of exploiting this trade-monkey are plentiful.

Clean and precise quantitative risk management, even in the heat-of-the-moment.

Watching pip-by-pip action of the forex market is both tiring and stressful. Exploit the quantitative nature of the market and let the computer do what it does best — calculations.

Simply specify a percentage amount of your account that you are willing to risk per trade and another percentage for the total allowable drawdown. QTD will estimate expected risks of a trade, convert risk value to your account currency, and put on trades that are appropriately sized for your risk level.

Moreover, QTD constantly monitors all its positions to make sure it doesn’t go over your drawdown limit. If it does, the system will disable any new trade entry and only scale out of the existing positions.

Automated entries and exits

“It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”

Reminiscences of a Stock Operator

QTD is not afraid to wait for the right moments.

  • Typical number of trades per month for each instrument is less than 5.
  • Sometimes QTD doesn’t trade at all for weeks if the conditions are not good.
  • Typical holding period of a QTD trade is measured in hours.

The goal is to ignore the price ripples and noise to catch the big swings for maximum risk to reward ratio.

Statistical algorithms that adapt to market conditions.

The core of QTD is based on the fundamental principle of buy low and sell high. It combines time series statistical analysis techniques and technical analysis indicators to assess time, volume, and price conditions. If the price is deviating too much within a bullish trend, it goes long, and vice versa.

QTD achieves this with a divide and conquer approach to assess questions like:

  1. How strong is the major trend?
  2. How much is the minor correction?
  3. How likely is it to continue trending?

There are several analytical components within the grand algorithm; each performing a particular real-time stochastic analysis on the instrument data. An entry is made if and only if the price is ‘low’ according to an aggregate temporal probability.

There is no hardcoded or backtest optimized parameter involved so the algorithm is not curve fitting to historical data.

The exit is simply a trailing stop because nobody knows for sure how far high a price jump or how deep a dive can go.

Use case example

Quantised Trading Desk is a low-level automated forex-trading expert system. It relies on your assessment of the market as inputs to its model. If you expect a particular currency to go up in the coming days or weeks, you tell QTD to go long on that instrument, and vice versa for shorts. The following is an example of how to integrate QTD into your trading process.

  1. Conduct your high-level market analysis.
  2. Identify a currency that will go up or down in the coming days or weeks.
  3. Launch QTD on that currency and specify your bias.
  4. Let QTD run as long as your bias exist.
  5. Repeat process for other currency pairs and run multiple-instances of QTD if needed.

Furthermore, you can manually trade along with QTD on the same currencies as the system is aware of its own positions only and will not interrupt other trades.


Results

We are confident enough about QTD that we are using it to trade our own forex accounts. Check out our forex and systems blog to see real forex trading using QTD.

We do not dazzle you with false promise of easy money with back-test results because:

  1. We trade the future, not the past.
  2. Back-test results are easy to game.
  3. Past results do not indicate future performance.

However, don’t let us stop you from testing QTD yourself. Test it, stress it, break it, and do whatever to the system so that you can find out if QTD can make your trading easier.

Limitations

1. QTD is not a money machine. Let’s make this clear, if you are seeking an ‘expert advisor’ that will turn your $1,000 into millions, look elsewhere. QTD is for hardworking traders that is willing to put in efforts. It merely delegates the tedious work for you so that you can focus on the big picture.
2. QTD relies on you. If you tell QTD to go long during a financial crisis, it will go long during a financial crisis. Granted, QTD will try to find local lows to get you optimal long entries. In fact, QTD should yield statistically significant (p-value < 0.05) less worse result than a normalized trade if you are diametrically wrong about the trend (e.g. bullish in a strong down trend). However, losing money is never good. So losing less should not be viewed as a consolation prize. Thus, do your due diligence so that you don’t throw QTD and your money into a headwind.
3. QTD is as risky as you make it to be. The risk level parameters, risk per trade and maximum drawdown allowable, that you enter in the startup screen are the values that QTD will internally use in its risk management algorithms. Leverage can work for you to make money but it can also work against you. Never risk more than you are willing to lose as there is no guarantee in trading.
4. QTD is not for everyone. Trading is a very personal and specialised endeavour. There are as many trading methods as there are traders. As such, there is more chance that QTD is not right for you than it is. Nobody can decide that besides yourself. So take advantage of our limtied free trial offer and take QTD on a spin in the market.

Free Trial

Email us at info@quantisan.com to request a limited free trial for use with a DEMO account at Dukascopy Bank or for backtesting on the Dukascopy JForex platform. Quantised Trading Desk is currently only available for Dukascopy Bank. QTD is no longer available for sale.

Terms and Conditions

Quantised Trading Desk (QTD) and information provided should not be relied upon as a substitute for extensive independent research before making your investment decisions.

By using downloading, accessing, or using QTD, you agree to be bound by the terms of our End-User License Agreement.