Information

1. Definition of the process
2. Difference between "Automating trades" and "Automated Strategies"
3. Do you know the basic differences between trading Stocks (Equities) versus trading Futures?
4. What influences the trading market?
5. How to become an experienced trader?
6. Traditional Trading vs BotTrading™
7. World Future Exchanges
8. Amount of investment necessary for an overnight Trader
9. Sub Accounts
   

Info 1: Definition of the process

Money:
The user deposits the amount of his investment into his own new bank account. The bank is not of his choice but as defined by the Clearing House/Broker of his choice, such that the transactions can be done fast and electronically. Each Clearing House/Broker partnering with StrategyBot provide the list of the Bank branches worldwide and the list of partnering banks if any. A user may add or remove money in this account as wished. If money is lacking to execute the trades, then an error will be generated on the program. Only one main user can run each copy of the StrategyBot software since only one bank account is identifying each user. StrategyBot Inc. and StrategyLand companies have no information about the amount of money deposited in these bank accounts. It remains private to the user. Each open trading day, each user will receive via E-mail the details of the trades and the status of this bank account according to the rate of the currencies used in the trades.

Activation of Contract(s) and Strategy(ies):
Each Clearing House has a defined broker allocated to the user’s account. This broker does not interfere with any of the trades. As shown in the picture, a broker is not in the process of each trade. The broker only needs to be informed by the user of which contract to be activated by the servers. The broker’s role is only to provide service to the user. An E-mail can be sent to the broker for any issues a user may have.

The servers:
StrategyBot needs a set of servers dedicated to its program. One server is used for real accounts, the other is used for paper accounts. Both are located at the Clearing House/Broker. The servers are loaded with the fully automated strategies from StrategyLand. The user’s fully automated strategies will be executed from these servers. The servers have direct access to the Futures exchanges listed on the right side of the picture above. The lapse of time from the decision by the servers to buy or to sell and the receipt at each Exchange is only a fraction of a second. No human being stands in between. No time is lost for execution. A set of 2 servers is needed per 100-150 users.

Reporting:
A user may watch on his own computer screen the results of the trades. The top right side shows in US$ the cumulated amount of the profit and loss (P&L) of all Contracts/Strategies for the day. This amount is a mixture of currencies if the selected contracts are of different worldwide exchanges. Example this shown amount might be including US Dollars, Euro, British Pound, Singapore Dollar, Hong Kong Dollar, Japanese Yen together. Next day’s E-mail report will differentiate the profit and loss by currency.

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Info2: Difference between "Automation trades" and "Automated Strategies"

Some claim that StrategyBot is not the only software worldwide to automate trades. The answer is of course right, but StrategyBot is the only known software worldwide until today to implement fully automated trades where the users do not get involved at all, do not have to watch, nor know how to trade. So let us in this chapter explain the differences. Automating a trade is simply preparing all of the parameters of a trade before placing an order. A trader would automate by setting a Buy or Sell value or a MIT value, the Limit value, the Stop Loss value, the Auto Trailing Stop parameters and potentially the same parameters for the next orders following. The trader still has to know if a Buy or Sell has to be placed upon reviewing technical analysis indicators. Simple software applications offer such facilities. Some offer charting for technical analysis against a monthly fee.

Now as opposed to the above, Fully automated Strategies or BotTrading fully automated Strategies such as available from StrategyLand Research are different. They are also unique worldwide. They are pre-defined algorithms loaded in an executable software code, which will automatically place Buy or Sell orders without any intervention by the trader or a broker. Once clicked for run by the mouse of a user, the fully automated Strategies analyze the market and create orders if the preset conditions of the market are met. They execute for as many days until the trader stops them by a click of the mouse for whatever reason he may decide. These Automated strategies may run for months or years based on the same pre-set parameters until stopped by the user. See how a Strategy is written and which parameters are set for its execution in TBD. Besides with StrategyBot software there is NO monthly fees for the Charting offered nor for the data feeding from the Exchanges.

If you wish to use our automated strategies, you have to make your own choice among our list. We offer fully automated strategies for monthly rental fees for the following 4 US Futures Contracts only (EuroFx Currency, S&P Index, Nasdaq Index, Russell 2000 Index) and for the following 2 European Futures Index Contracts (Dax 30, EuroStoxx 50). With the same amount of money invested a StrategyBot user can activate fully automated strategies for the European market then when these exchanges close daily, the Americanfully automated strategies get running. All automatically for a period of up to 24 hours since Currencies can be traded that long.

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Info3: Do you know the basic differences between trading Stocks (Equities) versus trading Futures?

1. Example with Agriculture (Corn, Wheat, etc..), Metal (Gold, Silver etc…), or Indexes (S&P, Nasdaq, Russell 2000, Liffe, Dax, EuroStoxx, etc….

Comparing Futures or Commodities against Stocks

With $1,000.00 investment, what may a buyer get?
What does buyer get?

	with FUTURES Investing $1,000 Margin amount for Soy Beans 5,000 Bushels of Soy Beans If Bushel = $5.00 Buyer gets $25,000.00 of product with STOCKS Investing $1,000 & 100% margin 400 Shares if Stock = $5.00 Buyer gets $2,000 of Shares Investment is 12.5 times lesser				Outcome Comments
	Win or Loss with FUTURES   WIN If Bushel = $5.25 Buyer gets $26,250.00 Profit = $1,250.00 Results = Excellent investment ROI = 125.00%     LOSS If Bushel = $4.75 Buyer gets $23,750.00 Loss of = ($1,250.00) Results = Loss bigger than invested ROI = -125.00% Win or Loss with STOCKS   WIN if Stock = $5.25 Buyer gets $2,100.00 Profit = $100.00 Results = Modest Profit ROI = 10.00%     LOSS if Stock = $4.75 Buyer gets $1,900.00 Loss ($100.00) Results = Modest Loss ROI = -10.00%

2. Example with Currencies (Euro, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar etc……).

With Stocks you buy 100 stocks of Intel as an example at a value of US$20, it will cost you US$2,000 + the trade fees. In order to double your investment, you would have to wait until the Stock reaches US$40. Simple and straight forward process.

With Futures, other notions do come into consideration.
If you buy the Euro Currency at US$1.20 (which is a Futures purchase), it will certainly not request you to wait until it reaches US$2.40 to double your investment.

With Futures, you do not buy 100 Euro Currency (you could but it would cost you a huge margin).
Instead, with Futures you buy at least one lot of Euro which will cost you the margin set for this currency (on Sept04 US$3,240). Then for every one/ten thousand’s movement of the Euro Currency, you will win or lose US$12.50. Meaning, if the Euro moves from 1.2000 to 1.2001, you win US$12.50. If it moves to 1.1999, you will lose US$12.5 not counting the trading fees.

Upon closing your Futures trading position(s), the Margin amount removed from your account when you did open your position is moved back into your account in its entirety. Only the gain or losses added to the trading fees will change your portfolio.

Therefore since the Euro moves by many Pips (one Pip is one/ten thousand) every day, you could win or lose much more with Futures than you could ever do with Stocks.
You could win US$1,000 in a few minutes and lose it back the next few minutes. It only request the number of Pips to be 80.

Consequently, Trading Futures requires to use Technical Analysis. Emotions usually involved with Stock trading has no room to play in Futures trading. You have to know what to buy or sell and at what time, for how much and what Stop Loss value to set in order to secure your exits. Futures trading is somehow more technical than Stock Trading, more mathematical.

Overall, there are less volume involved in Futures than Stocks since Stocks is practiced by so many traders worldwide, but the Volume of Futures Trading is gaining much more momentum every year than Stocks trading does. However this might be related with the stake of the economy.

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Info 4: What influences the trading market?

Professional Traders get major information from published data reporting on the state of the worldwide economy. Since the US market is an important factor of the world economy, certain of its data give clues in regards to the future direction of the trading markets. The economy is periodically measured with a non exhaustive list below of different factors :

• Size and Growth : of a country’s economy, or output of its goods and services, is measured by its “GNP” (Gross National Product) and its “GDP” (Gross Domestic Product). The “Industrial production” of a country is a published monthly report. The “Consumption” is another periodic indicator as well as “Consumer Confidence”. Trade figures show the Net Exports of the goods and relate on the health of the local economy.
• Inflation : it is measured with “Consumer price Index”.
• Unemployment : Published monthly affects the market deeply
• Currency : its value against major traded currencies.
• Balance of Payments : from supply and demand, or exports versus imports
• Interest Rates : the trading markets watch the “Fed funds rate”.
• Budget : or government spending.
  At the time, each of these above periodical factors are published, the Markets react and move immediately up or down depending not necessarily if the results are bad, but often enough on whether the results were expected or not. It is fairly similar as to what is happening with equity trading. A company may reports better earnings but its stock goes down because the earnings are not as high as expected!!! And vice versa, a company may report poor earnings and its stock does not move down, because the poor earnings were expected. Welcome to the speculative world of trading !!

Info 5: How to become an experienced trader?

• It is sad to say that a trader has to experience losing in order to really know what not to do anymore. Setting up a Stop Loss on each trade does ensure not losing much. Enhancing Stop loss with Auto Trailing Stop makes it even better since a Stop Trailed may end up a Win.

• Always know how to use the trading software offered to you. It will help you gain time and secure the exit of your trades. Many features are built in to help you.

• Being trained is an absolute necessity before trading. StrategyLand Research offers one hour free training in its office per user or if more is requested, we train upon a fee of US$1,995 for 2 to 3 days of training. We also provide a Trading game live where traders can get experience without depositing any money, nor risking a penny.

• Use Technical Analysis as a GUIDE (or 2nd OPINION) to enhance your investment/trading decisions and act ahead of the crowd (as there is no "holy grail" in the markets).

• Be aware that Futures contracts are seasonal. Some are effective for one month, or two or three. Therefore, you cannot leave open position(s) forever. Whenever you see a new contract (new month) showing up on your StrategyBot screen, you'll have to close your position(s) and reopen them on the new month.

• Know your glossary of trading terms.

• Get the Financial news from TV or newspapers or magazines. The news will indicate how the economy is presently behaving. News about the economy will affect the markets up and down.

• Get reports from experts on a daily basis if possible.

  • www.forex-strategy.com
  • www.fxstreet.com
  • www.zacks.com

• Get involved on a daily basis or if you did not trade for some days, get and review past recent reports.

• Review historical data of the Contracts you wish to trade on. That will give you some indication of the past High and Low of each Contract. That is valuable data for your trades today.

• Learn the behavior pattern of the Contracts you wish to trade on. Some Contracts swing a lot more than doing trends. Many Contracts move in the same direction daily but carry different point values so by testing the market with a Contract having low point value may lesser the risks.

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Info 6: Traditional Trading vs BotTrading™

Traditional Trading is defined as either, trading online or trades placed as suggested by a broker, suggested by a magazine, a financial advisor or any 3rd party. Where BotTrading™ is defined as fully automated trading.