We use the term countertrade / counter trading / counter trade to describe a signal in contradiction (opposite direction) to a previously given signal. As we DO NOT use a stop loss (SL) per position we therefore make use of countertrades to balance out our account(s) and stay as beta neutral as possible to reduce […]
Money Management
Understanding hedging
Hedging is a way to reduce the amount of loss you would incur if something unexpected happened. With respect to our signals if you intent to protect an existing position from an unwanted move in the opposite direction you could enter into a hedged position. As we DO NOT use a stop loss (SL) per […]
Spreading risks
Spreading risk in your account does not guarantee against a loss, but diversification is an important component to help you minimize equity drawdown and reduce systematic and single sided risk. Always try to diversify the trade you are taking. Do not take more than one trade in the same direction (long/short) and in the same […]
Minimum account balance
The minimum initial deposit to successfully follow our trades should be around 10’000 £/$/€. Most of our followers deposit a multiple of this. We strongly believe that proper funding is part of being successful and we do not believe that trading small accounts with high leverage can be a successful long term strategy. You need […]
What is risk management
To minimize the likelihood of a financial loss, each investor needs to have some risk management strategy in place . Trading is about managing probabilities. Using our signals will give you a very high probability to win a trade but drawdowns are a reality and WILL happen to you at some point or another. Anything can […]
What is money management
Successful trading will by definition have a positive expectation. But what does this mean? It means that in the long run, S1X Financial trading system will make money. It does not mean you will win every single trade. We may take a position in the market when our algorithm expect a profitable outcome, but due […]