Cancel Send invite. Info Stats General. TWR measurement is required by the Global Investment Performance Standards published by the CFA Institute. Its distinguishing characteristic is that cash inflows, cash outflows and amounts invested over different time periods have no impact on the return. Loading, please wait Pips Lots Change Percentage Profit Pips Export HTML CSV PDF.

Chart Growth Balance Profit Drawdown. No data to display. Trading Periods Goals Browser. Tip: Hold shift to select a period to zoom into. M1 M5 M15 M30 H1 H4 D1 W1 MN. Open Trades Closed Trades Events. Pips Profit. Growth Pips Profit Lots. Winners Vs. Losers Longs Vs. Shorts Longs Profit Vs. Shorts Profit Winners Profit Vs. Losers Losses. Pips Gain Profit. MAE Vs. Trade Outcome MFE Vs. Trade Outcome MAE Vs.

MFE - Winners Vs. Trade Length: 1h 55m. A GHPR GHPR: 1. Data includes last transactions based on the analysed history. Trading Activity Open Trades Open Orders History 0 Exposure. Open trades are private.

Change Profit Lots Pips. Monthly Analytics Terms Privacy Site Map Site Map Calendar. Português Brasil. Português Portugal. All Rights Reserved. HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure.

Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose.

Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results. All Quotes x. EURUSD 1. Dear User, We noticed that you're using an ad blocker. Myfxbook is a free website and is supported by ads.

In order to allow us to keep developing Myfxbook, please whitelist the site in your ad blocker settings. Thank you for your understanding! You're not logged in. This feature is available for registered members only. This is commonly referred to as a white box, although it is sometimes called a clear box or a glass box.

Within financial markets, the increasing use of black box methods poses a number of concerns. A black box model is not inherently risky, but it does raise some governance and ethical questions. Investment advisors who use black box methods can conceal the true risk of the assets they recommend under the guise of protecting proprietary technology. That leaves both investors and regulators without the facts that they need to accurately assess the risk that is being undertaken.

Do the benefits of black box methods offset the drawbacks? Opinions differ. The use of black box models to analyze investments has gone in and out of style over the years, usually depending on whether the financial markets are up or down. During volatile patches in the financial markets, black box strategies are singled out for their potentially destructive nature. The risk levels being undertaken may not be evident until extreme losses reveal them. Advances in computing power, big data applications, artificial intelligence , and machine learning capabilities are increasing the use and adding to the mystique surrounding black box models that use sophisticated quantitative methods.

The use of the black box model in psychology can be traced to B. Skinner, father of the school of behaviorism. Skinner argued that psychologists should study the brain's responses, not its processes. There have been several notable instances that included extreme losses in portfolios devoted to black box strategies.

Black box strategies were not to blame for these events. However, investors who were dependent on those strategies suffered from them. as did many other investors who were caught in the storm. These events include:. Machine learning techniques that have greatly contributed to the growth and sophistication of black box models are closely related, particularly relevant to machine learning.

In fact, it has been argued that the workings of black box predictive models that are created from algorithms can become so complex that no human could work through all of the variables involved in making a prediction.

The black box model is used in engineering to build predictive models that exist in computer code rather than in physical form. The variables can then be observed, analyzed, tested, and revised without the expensive and time-consuming process of actually building them in the real world.

A black box model designed for use in the financial markets is a software program that analyses market data and produces a strategy for buying and selling based upon that analysis. The user of the black box can understand the results but cannot see the logic behind them. When machine learning techniques are used in the model's construction, the inputs are in fact too complex for a human brain to interpret. BlackBoxStocks is the name of an internet-based trading platform for stocks and options traders.

The company says it uses "'predictive technology' enhanced by artificial intelligence" to identify rapid changes in prices that can be exploited by day traders.

The site Day Trader Review calls it "an incredibly good value. A review in The Stock Dork calls it "the real deal and one of the best market scanning systems available. Note that the reviews are evaluating BlackBoxStocks as a consumer trading platform.

They are not drawing conclusions about the degree of accuracy of its predictions. The black box model of consumer behavior is drawn from the academic field of behavioral psychology. Behavioral psychologists view the human brain as a black box. The human mind responds to stimuli. In order to change behavior, the stimuli must be changed, not the mind that reacts to the stimuli. This theory has been adopted by marketers as a way to analyze the consumer decision-making process. The analysis attempts to understand and influence buying decisions by observing the consumer's response to certain stimuli.

In the field of artificial intelligence, a black box model uses a machine-learning algorithm to make predictions while the explanation for that prediction remains unknowable and untraceable. A white box model attempts to incorporate restraints that make the machine learning process more transparent.

Transparency, or "interpretability," could be an ethical and legal objective in models used in healthcare, banking, or insurance, among other industries. Black box models are increasingly being used to create software not only for applications in the investing world but for use in healthcare, banking, engineering, and other fields. The black box model is developing in tandem with machine learning capabilities, and both are increasing in the complexity of their processes.

In fact, they are becoming more opaque. That is, we are relying on their results without understanding how those results are produced. Science Direct. Association for Talent Development. Harvard Data Science Review. Simulate Live. Day Trader Review. The Stock Dork. Automated Investing. Stock Markets. Financial Advisor Careers. Podcast Episodes. Quantitative Analysis. Wealth Management.

Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News. Your Money. Personal Finance.

In the arena of active trading, a wide range of participants strive to sustain profitability and achieve specific objectives. Whether one is trading equities, futures or currencies , competitors from around the globe implement nearly infinite strategies on a daily basis. One such approach to the marketplace is known as black-box trading. Black-box trading is a rules-based, fully automated method of engaging the financial markets. The term "black-box" alludes to the proprietary nature of the system or strategy that governs functionality.

Black-box trading applications are also referred to as "quant," " automated " or "algorithmic" systems. In addition, they often employ big data analytics and play an integral role in many disciplines including high-frequency trading HFT. As technology has evolved, black-box systems have come online to the masses. No longer must one be a large institutional participant to become a practitioner, as individual retail traders also have numerous options readily at their disposal.

How Do Black-Box Trading Systems Work? The exact specifications of a black-box trading system are typically shrouded in secrecy. Lines of intricate programming code define operations governed by specific trading rules and guidelines. In short, each system is unique, proprietary and protected from public scrutiny.

Why Trade Shares with FXCM? Low Margin Requirements Open Account. Every black-box system begins with a trading strategy. The strategy is then translated into computer coding language, integrated into a software trading platform and plugged into the market.

However, no matter how intricate the code or robust the platform, a black-box system includes functionality local to three standard areas of trading: Signal Generation : In accordance to a concrete set of analytical parameters, the black-box scans a selected market or markets for trading opportunities.

Upon the defined criteria being met, a market entry point or "signal" is created. Each signal is a prompt for the automated system to enter a specific market. Signals are based on a vast array of methodologies, with a few of the most common being momentum oscillators , market reversal points or trend following protocols. Trade Execution : Upon a signal being created, the black-box automatically places orders at market in accordance with defined parameters.

In the event an entry order is executed, the newly opened position is managed by the system's automated framework. Concrete rules govern the location and order type placed upon the market, including stop losses and profit targets. Countless trade management strategies are employed, with a few examples being trailing stops , scalping and scaling.

Risk Management : Provisions for risk management are regularly included in the makeup of the black-box trading system. Aligning risk to reward on a trade-by-trade or account equity basis is a primary method of controlling levels of market exposure. Portfolio optimisation, position sizing and hedging strategies may then be integrated into trading operations.

It's important to remember that the supreme goal of each black-box system is to create and preserve a quantifiable "edge" in the marketplace. An edge is the means by which a strategy or system consistently gains market share. It may be extremely sophisticated or very simple, depending upon the type of trading and methodology involved in its construction.

The Black-Box Debate: Pros And Cons. Over the last decade, the rise of black-box trading practices has been a hotly debated topic. Pieces of legislation such as the Markets in Financial Instruments Directive MiFID in the European Union have formally addressed the role of automation and quant trading in the contemporary marketplace.

MiFID II puts forth official guidelines to ensure greater transparency and efficiency surrounding automated trading systems within international markets. Opponents of black-box trading contend that widespread trade automation serves to undermine the integrity of the financial markets.

Essentially, the case against boils down to three main arguments: Increased Volatility : The use of automated strategies that instantly place a large number of orders upon the market are capable of spiking periodic volatility.

A sudden increase in order flow can enhance the velocity of price action, thus bolstering risk exposure and creating chaotic market conditions. Potentially Dangerous : Negative chain reactions or "flash crashes" are often attributed to black-box trading practices.

The August flash crash of the Dow Jones Industrial Average was largely blamed on momentum algorithms employed by black-box traders. The price fell 1, points in minutes, prompted by a flood of sell orders hitting the market instantaneously.

Competitive Disadvantage : Ultra- low latency options for market access are commonly cited as creating an uneven playing field. Direct market access and server co-location are often viewed as favouring participants with sophisticated black-box capabilities.

Conversely, proponents argue that the markets and participants benefit from automated systems trading. The following points are commonly made in defense of the practice: Efficiency : Higher levels of market participation optimise the process of price discovery. With an abundance of traders and investors interacting with one another, ongoing trade is more likely to reflect the efficient market hypothesis.

Liquidity : The enhanced trade volumes ensure greater market depth. This enables traders to engage markets more economically. Trader Competency : A major advantage of using black-box systems is the reduction of the human element in active trading.

Through taking a hands-off approach to the markets, errors associated with human intervention are eliminated. Emotional trading and client-side latencies are reduced, while precision in execution is promoted. As technology advances, the role that automated black-box systems play in the marketplace is likely to grow. For instance, one-third of the staff at financial titan Goldman Sachs are computer engineers, many of whom specialise in the automation of currency trading.

Retail traders are also joining the ranks of black-box practitioners. Pre-made systems are readily available online for purchase or lease, with many priced affordably. In addition, software trading platforms offer custom programming options for automated system development. Regardless of the size or resources of a firm or individual, integrating a black-box trading system into operations is no longer a monumental task. Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.

The Dow Jones Industrial Average DJIA is one of the oldest and probably best-known stock indexes in the world. It is composed of 30 U. Four of the 10 largest U. companies ranked by market capitalisation were members of the DJIA as of 8 June These are the 10 largest publicly traded companies in the U. Familiarity with the wide variety of forex trading strategies may help traders adapt and improve their success rates in ever-changing market conditions. A futures trading contract is an agreement between a buyer and seller to trade an underlying asset at an agreed upon price on a specified date.

Due diligence is important when looking into any asset class. However, doing one's homework may be even more important when it comes to digital currency, as this asset class has been around for far less time than more traditional assets like stocks and bonds and comes with substantial uncertainty.

Conducting the proper research on cryptocurrencies may require a would-be investor to explore many areas. One area in particular that could prove helpful is simply learning the basic crypto terminology. Certain lingo is highly unique to digital currency, making it unlikely that traders would have picked it up when studying other….

Bitcoin BTC , Ethereum ETH , Litecoin LTC , Bitcoin Cash BTH and Ripple XRP are leading cryptocurrency products. Each provides volatility and opportunity to traders. Learn more about them at FXCM. Forex trading is challenging and can present adverse conditions, but it also offers traders access to a large, liquid market with opportunities for gains. Determining the best forex platform is largely subjective. Trading Station, MetaTrader 4, NinjaTrader and ZuluTrader are four of the forex industry leaders in market connectivity.

Although similar in objective, trading and investing are unique disciplines. Duration, frequency and mechanics are key differences separating the approaches.

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Commission-based pricing is applicable to Active Trader account types. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice.

The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination.

Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication.

The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

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