What Does the Notion “Processed” as Well as Processing of an iPA-Manager’s Trading Signals Mean?

The iPA technology is a key element of the iPA system and a technology of capital management. The uniqueness of the iPA technology lies in the application of special algorithms of intelligent processing of an iPA Manager’s trading signals in order to reduce the risk level and increase the yield level when executing transactions. Risk management algorithms are the basic ones among the algorithms of the iPA technology, which determine a necessity to modify (change the transaction direction from Sell to Buy or vice versa), block or use trading signals in their initial form in order to generate trading orders. Thus, there are two types of trading orders:

  • Original (using an iPA-Manager’s original trading strategy);
  • Processed (using special algorithms of intelligent processing of the iPA technology).

The processing of trading signals is a technological process of analyzing/forecasting an iPA-Manager’s activity with subsequent optimization of his/her trading results on the basis of the developed system classification. According to our research, when executing transactions guided by own assumption of the further change in a quote, the most of the erroneous decisions taken during trading activity relate to the acceptance of false statements as correct ones, in other words, it is just wishful thinking.

Each trading decision made by an iPA-Manager should be processed and estimated by the algorithms of the iPA technology against a number of parameters according to the current market trend. Subsequently, there is a necessity to adjust results of an iPA-Manager’s trading operations according to the obtained assessments laid down in the basis of the activity model of each iPA-Manager. The system classifies iPA-Managers’ trading activities based on the individual behavior of each trader:

    How an iPA-Manager Opens an Order

  • on the basis of the analyzed market situation;
  • without a preliminary estimation of a trend;
  • due to sharp market changes.

    How an iPA-Manager Closes an Order

  • when the specified positive profit value is reached;
  • when the assumed negative profit value is reached;
  • if the positive profit value is lower/higher than the forecasted one;
  • if the negative profit value is lower/higher than the assumed one.

Thus, analytical estimation and classification of an iPA-Manager’s trading decisions applying the iPA technology algorithms are the basis for determining areas for further response of the iPA system using his/her trading signals — generation of an original/modified trading order or blocking his/her trading signal transmission.

Please note that the degree of trading predictability and consistency influences the efficiency of trading signals intelligent processing. If an iPA‑Manager is not consistent while trading and starts creating orders randomly, then the evaluation of the correctness of his/her activity will be low. In future, the iPA technology algorithms based on an iPA-Manager’s history of his/her trading activity and the forecast of his/her behavior generated by the system will recognize the correctness of each new trading signal, as well as the possible risks and probability of receiving profit when a trading order corresponding to this behavior is executed.

Based on statistical data, approximately 30% of accounts, in which iPA-Managers following their original trading strategy execute transactions with low or negative income, can be considered as profitable Processed accounts if he/she complies with the iPA trading principles.

In general, on the one hand, Processed trading orders generated by the iPA system is an attempt to minimize the number of low-quality (unprofitable) transactions and, on the other hand, to increase the execution speed of orders and their profitability.

You can find additional information on how to increase the trade quality of an iPA-Manager in the article How to Increase the Trade Quality (Recommendations for an iPA-Manager)

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