ZIGMA AI
METATRADER 4 - THE PLATFORM BETWEEN THE CLIENT AND THE BROKER
MT4 - Metatrader 4
The platform/program most used to connect to the market. Even Algorithms are often programmed for MT4.
Download MT4 below:
For Mobile and Android here:
For Mobile and iOS here:
For PC and Windows here:
DICTIONARY AND EXPLANATIONS
Broker/supplier/Broker
Our broker: FP Markets. The role of a Forex broker/Broker is to:
• Provide a secure, reliable platform (Usually Metatrader 4 or 5) that allows money managers and investors to interact.
• Facilitate money managers' trading activities within the framework of permitted regulations.
• Facilitate account management, deposits, withdrawals and related activities.
• In addition to a common trading platform, allow transparent review, feedback, rating and related mechanisms for investors and money managers to choose and interact with each other.
How do we charge?
We charge but only on the profit that the trade generates for you. If you earn SEK 100, we take SEK 30 of it, i.e. 30% of your profit weekly. It is called Performance Fee - "PF" and is charged according to "HWM" = High Water Mark which means that we can only charge our part once on the same rise. A fair system that all serious players apply.
Drawdown = "DD"
DrawDown is the account balance taking into account the positions that exist or if the account is free to trade. A low DrawDown indicates less risk in the trade but also less volatility and lower returns.
• Absolute DD: compared to the initial balance, i.e. invested capital
• Maximum DD: largest DrawDown (measured in currency), how many $ the account, if any. decreased by
• Relative DD: largest relative DrawDown (measured in %), i.e. taking into account the open positions
A typical relative DrawDown (DD) in different risk allocations is:
- Very low risk: 1-3%, bond funds and which ZIGMA AI has never exceeded
- Low risk: 4-6%, index funds
- Normal risk: 7-11%, mixed funds, free shares
- High risk: 12-21%, small company shares and shares on smaller share lists
- Very high risk: 22-30% and above, Hedge funds, direct investments in individual companies, start-up companies, new issues and trading yourself on the FX market. Or like when Norweigen Airlines diluted its shares so the value went to a few percent.
Be aware that those who trade individually on the FX (Forex/currency market)
lose 75-95% of their entire invested capital. That's why ZIGMA AI exists
which does this with a predetermined risk allocation and completely
automatically and with 80-90% positive trades!
Size of each trade = Lot
Is the size of the position that you are buying or selling. Like you buy 1 share or 100 shares in the stock market. Previously, spot Forex was only traded in specific amounts called lots. The default lot size is 100,000 units. There are also mini, micro and nano lot sizes which are 10,000, 1,000 and 100 units respectively. Lot number of units:
• Standard 100,000 = 1 Lot
• Mini 10,000 = 0.1 Lot
• Micro 1,000 = 0.01 Lot
• Nano 100 = 0.001 Lot
ZIGMA AI with an invested capital of $1,500 usually trades from 0.01 to 0.03 lots in its positions
The change in currency value relative to another is measured in "pips", see below, which is a very, very small fraction of a unit of the currency's value. To take advantage of this minute change in value, you need to trade large amounts of a particular currency to see any significant gain or loss.
Pip
"PIP" stands for Point In Percentage. More simply, however, a pip is what we in FX would consider a "point" for calculating profits and losses.
The unit of measure to express the change in value between two currencies is called the "pip". If EUR/USD moves from 1.0737 to 1.0738, that increase in value is $0.0001 = (1) one pip.
A beep is usually the last decimal point in a quote. Most pairs go to 4 decimal places, but there are some exceptions such as Japanese yen pairs (they go to 2 decimal places).
Important: There are brokers that quote currency pairs beyond the standard "4 and 2" decimals to "5 and 3" decimals. They quote FRACTIONAL PIPS, also called "pipettes".
For example, if GBP/USD moves from 1.27090 to 1.27091, the $0.00001 move higher = (1) a pip.
Since each currency has its own relative value, it is necessary to calculate the value of a pip for that specific currency pair. In the following example, we will use a quote with 4 decimal places. To better explain the calculations, the exchange rates will be expressed as a ratio (ie EUR/USD at 1.2500 will be written as "1 EUR/1.2500 USD").
Security in trade - Hard-stop
ZIGMA AI allows a minus of 5% in open positions and stops trading if it exceeds >5%.
Then there is a security stop with the broker of 10% minus on the account. So the security is very high, higher than e.g. the stock market causes one or more of your shares to go down several percent on one or more days in a row.
In normal cases, we are at a maximum minus 1% in open positions, but as an example, in closed positions in 2023, we had only 0.38% in a total drawdown, then with an annual plus of +93% in return.
Margin call and hard stop
If the account is loaded with too many lots, each broker has a security level where the account is closed. That limit is 80%, it can be reached when you have bought so many and large positions that they have eaten up most of the invested capital together with open losses.
ZIGMA AI rolls between 3,000-6,000% (the higher = the less load on the account) when the positions are open so it is so far that it can never go towards a hard stop but good to know what it stands for.
How much of your invested capital is traded with?
It varies between 1-5% of your invested capital. If you have deposited $1,500, "the positions (trades) that are bought" cost between $15 and $75, the remaining capital is only in the account. This means a small load = a low risk.
Fairness and balance
The balance with open positions is called equity: The balance if you were to sell all open positions. Equity can be either above or below the "balance" depending on whether total open positions are plus or minus at the time. SD").