Trade Intensity

The Trade Intensity function works in combination with the Trade Mode setting.

The Trade Intensity function is a proprietary function developed by TrendProphecy to try to diminish the damage High Frequency Trading does to the market.

In most markets and certainly in the international FOREX and also Equity index futures markets there is a small set of very big traders whose entries into the market often have an immediate and very tradeable impact on price volatility. 

These trades are always done by using very powerful computers sending a series of small transactions to the market at intervals close to a fraction of a second, also know as High Frequency Trading.

Because these traders operate from price based models they must get their execution within a very narrow price/time range which means they must execute as much of the volume they want as fast as they can while price is in that range. This results in a huge spike in what we call the intensity of trade.

TrendProphecy FX-Pro analyze the market and try to calculate the Trade Intensity all the time during the trading day.

We try to calculate and find a pattern - the so called "spikes", both their seize, the time they occur and the influence they have on the market when they occur. We then add that knowledge to our algorithms, which then try to classify those trades as more or less important for the overall markets behavior. Based upon that we calculate an Index spanning from Highest to Lowest interference with the trading pattern.

Highest meaning that TrendProphecy FX-Pro react very fast on almost any suspicious behavior in the market, making it very sensitive to Trend Changes.

Lowest meaning the opposite - the reaction is normally very calm to even huge spikes - depending on all the other factors used to calculate the index (size, time, earlier occurrence, time of day and so on).

Highest  High  Medium Medium Default   Low   Lowest

To get a better understanding of the possibility by using these functions  try to test  the different settings and analyze the different results.

Choose one of the 3 Trade Mode's.

Then drag the Trade Intensity slider to the desired setting and watch the result which the chosen setting has produced on both the graphic display and in the trades/profit columns.

Testing the different settings should be done often as the market conditions change all the time, meaning that one setting which has been great for today is maybe not the best setting for tomorrow.

A good practice is to test the market in the morning using the settings from "yesterday" and check to see if they still are optimal.

The Combination (change Trade Pattern Method) - a Unique Trading method developed by TrendProphecy FX-Pro :

After a trade has been entered - one of two thing happens:

1) The position makes a profit of a certain size and the trader takes profit by following a personal trading exit strategy.

2) The market goes against the position. That is where the special trading Method proves to be very helpful.

Start looking to change the Trade Intensity next to the current  settings and eventual find a different setting which is in agreement with the current position.
If that does not produce a result, try if another combination of Trade Mode / Trade Intensity will be in sync with the current position.

If that is the case stay with this Trade Mode/Trade Intensity setting and follow the advice fro this setting, otherwise change or close the current position.

As the day and week progress and the TrendProphecy FX-Pro algorithm 'learn' about the current day and week's trading Trends, the trades normally becomes fewer over the day - proof of how well the Algorithm adapts to the new market conditions.

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