Welcome to the home page of my latest development - GSystem!

Let me tell you all about it, but first, about what GSystem is NOT:

• GSystem is NOT an Expert Advisor for MetaTrader.
• GSystem is NOT a Strategy for TradeStation.
• GSystem is NOT a software piece that has to be installed on your computer and trade for you.

GSystem is a Supervised Automated Trading System which trades on a live account and generates trade signals for the subscribers.

• More details about Signal Subscription and signal delivery are on the How it works for you page.
• The system reports the trade results of a main account in real-time to this Web site.
• In addition to the trading to the main account, it has the ability to simultaneously trade a number of accounts set up for the Managed Trading.
  This means that it may trade your account together with its main account. More details about this feature are on the How it works for you page.

The system is built as a standalone software suite which utilizes several technologies, including live link to the executing broker, the signal-sending link to the Web site, remote database link and others.
I choose to develop a separate program rather then a plug-in for the existing charting/analysis platform because of several reasons:

• First, the system's logic requires dynamic time frames for the trading instruments and this could not be achieved in (otherwise) my favorite MetaTrader and TradeStation.
• Second, the system operates with a portfolio of instruments and the Money Management and Risk Evaluation components depend on it.
• So it was easier to develop a program (actually, a set of programs, or components) from the beginning than to adapt a complex logic to the limitations of the existing platforms that I normally use.

Now about a trading logic of GSystem:

• First (and most important), GSystem is a SUPERVISED automated trading system which means that it is always monitored by a live person who might interfere in a case of emergency and prevent the system from doing the critical damage to the account.
  This might include closing the open positions, moving stops to the safe levels, pausing the trading until the better conditions etc.
  This is just a pre-caution, but the ability to intervene is very important when you deal with automated systems, especially on a volatile FX market.
• GSystem operates with a portfolio of 4 Currency pairs: EUR/USD, GBP/USD, USD/JPY and USD/CAD.
• Before starting a new trading week, a special evaluation and preparation procedure is performed. It selects the trading candidates for the next week of trading and it might be 2, 3 or all 4 of the instruments, depending on the actual market conditions.
  This procedure also selects the time frames for each instrument and TA component for the next week.

Trade Entries:

• To enter a new trade, a system follows a set of simple logical rules applied to the set of the Technical Analysis (TA) components:
• Custom-built Market Mode component which defines short- to mid-term Market Mode.
• Custom-built Dynamic Buy/Sell Zones component which defines critical levels for the possible trade entries.
• Custom-built Price Dynamics component which is applied towards Dynamic Zones.
• The TA components are working on a time frame pre-defined for the particular instrument during the evaluation procedure described above.
• When the TA components signal the potential entry, the system evaluates the current portfolio state and follows these procedures:
• Signal Direction Evaluation: If there is an opposite trade (the trade of the same direction on the opposite side pair or of the opposite direction on a same side pair), this signal will be ignored to prevent the trade against its own account.
• Money Management: The system calculates the trading lot size for the new entry according to the actual Funds Available, Margin requirements and Stop Level.
  There is a built-in mechanism which prevents the system from continuous size increasing. This is important as it protects the account from loosing all gained profit on the eventual stop loss trade.
  The Money Management procedure is described here.
• Risk Evaluation: After the money-management procedure, the system calculates a risk evaluation amendment basing on the status of the TA components and adjusts the calculated lot size, if necessary.
• Critical Levels Calculation: The system calculates the Stop Loss, Profit Limit and Profit Protection levels for the trade.

Trade Handling:

• Profit Protection: If the trade's profit reaches the pre-defined level (instrument-specific), the system moves the Stop to the profit zone.
• Exit Signal: If the TA components generate the Exit Signal, the system closes the position.
• Opposite Entry Signal: If the TA components generate the Opposite Entry Signal, the system closes the position and enters a new one.
  If the portfolio logic does not allow the opposite entry at the time, then the position is closed without entering a new one.
• Stop Loss or Profit Limit: If the trade reaches either Stop Loss or Profit Limit level, the system generates an Exit Signal to make sure that the execution broker closes the trade.

Why adjust the Technical Analysis, time frames and trading candidates each week:
The primary problem with static technical trading indicators is that they fail to adjust to constantly changing market conditions.
Some indicators, such as moving averages, perform well in trending markets while others, such as Stochastics and the Relative Strength Index, perform well in sideways markets.
The problem is that all financial markets are constantly in flux, and what worked yesterday will not necessarily work well today or tomorrow.
Fixed indicators simply do not work in markets that are constantly in flux.

So by adjusting the Indicators, their time frames and parameters to the current state of the market the system is kept in sync with the current market speed, timing and development.

Happy trading!
Chuck