The idea behind the trading system is a HedgeFund strategy which has been implemented to foreign exchange market. The automated system analyzes the market on a quantitative basis and opens trades on correlating pairs simultaneously in different quantities.
Technically FX-Sync trades on the discrepancies between two or more instruments. It is important what quantitative weights are used for the instruments. To determine the proper alignment we use linear regression between the two or more instruments. The exact weights are further analyzed with advanced statistical tools, e.g. quantitative stationary series and entropy functions so the trading system creates a unique chart with high predicted probability of positive returns on the positions.
Quantitative legs are arranged in portfolios to achieve a high, appropriate risk/reward ratio which is managed by the system dynamically to minimize risk. As the strategy is arranged in a quantitative portfolio we can provide above-average stability and monthly returns. Risk is further diversified by taking hedge positions in correlated instruments based on quantitative trading which is present on the currency markets. The advantage of the quantitative system is that it uses quantitative trading and as a result it can quickly react to changes in the market.