The Theory Behind The “Robust Pawn” strategy :
The PAWN was coded strategically with an emphasise on preservation of capital rather than high returns.
We have developed a proprietary FX trading indicator and strategy (“The PAWN”) which is based on modelling the FX markets using principals in digital signal processing combined with machine learning regression models. The proprietary indicator alone predicts short-term price movements based on a cycle theory with a 64% Win/Loss ratio. This is a unique AI tool which gives traders a simple edge when deciding whether to go long or short any given currency pair.
The PAWN strategy generates an average of 20.01% uncompounded returns annually with a maximum 6.85% drawdown, averaging 42,000 trades per annum, assuming 2 FX basis points in gross fees including commissions and spread per round trip.