New Indexes. iSelect, iImpulse and iImpulse+. Migration program “Vasya”.

New indices will be created and launched any time soon.

The rationale behind this is due to the following reasons:

1. I have for several times said in the comments that we are not done yet with formation of indices, since our traders are not our slaves, but the same people with whom we need to negotiate work. Particularly major problems arise in our work contract in an offshore broker, who has no management license against European managers that have such a license. Being included in an index serves as a kind of stimulus and a pressure tool from us on such managers. There is not always (more precisely, almost never) the opportunity to determine whether we need a specific manager in the team for a long time. As a consequence, in order to retain all potentially important managers, we have to “bribe” them with something. Of course you know with what. This leads to the fact that iComposite and “A” rating as a whole do not at times have the best managers at the moment, because “they can still show a good result, therefore, they can be useful.”
At the moment, we can consider only iMain as the index with good results for most CIS-retail investors. We cannot ignore this fact since we plan to have a quite large share of retail in our investment audience in the coming years.
I agree that in the Forex, any income above zero is already good news, and each investor can create a portfolio independently. But, unfortunately, the vast majority of investors do not do this, or they start doing it only when there are no ready-made portfolios. Cancellation of provision of ready-made portfolio solutions is also being considered, but not in the near future.

2. From the very beginning of the company, I have constantly observed managers, indices and other components of the investment system.
At the moment, we have gathered at least enough history to be able to draw conclusions. Any time soon, I will try to write an article about my observations of the work of indices, the algorithm for their creation and the competence of this in terms of portfolio theory and statistics.
Simply put, I am of the opinion that we keep sinking accounts in an index for too long, and they need to be removed earlier. Of course, the most difficult thing is to find the exact time to remove them.
In the future, I plan (maybe when I retire) to develop a theory about calculating the time moment when an asset should be removed from a portfolio. In the article, you will see its rudiments.

One of the possible solutions to both problems is by creating additional indices in which managers will be duplicated with the main indices, which will give the investor a choice without infringing on managers’ interests and making the company to refuse to work with prospective managers.

Unfortunately, the architecture of indices at the moment is such that creating and maintaining their functionality would require funds equal to the minimum investment in PAMM accounts of the managers included in its structure (more precisely, the minimum investment in the PAMM of the manager with the maximum value from managed accounts in the index, multiplied by the number of managed accounts in the index). In addition, each index has 6 multiplications. Summary: creation of a new index costs us about 100-200k of investment.
Therefore, we cannot stamp them for every taste and color.

The second negative factor is the worldwide tendency of decreasing the leverage on Forex. The reason for this is constant influx of complaints to government agencies from clients who have merged their depo, using very huge risk. Bureaucrats always like solving one problem by generating another one (it’s difficult and slow); so they choose an easier way – “to restrict/prohibit something.” Forex is a market with a negative expectancy for random movement of pairs. Therefore, in bulk, it is a drain by definition. To cut down the leverage is just to slow down this sink, which will change nothing in a qualitative sense, but will reduce the density of flow of complaints, and this is the main thing.
Almost now, it is extremely difficult to agree with liquidity provider on granting a leverage above 50, especially without restrictions on the total amount or depo amount.
This also imposes restrictions on creation of new products, especially those requiring big margin requirements.

Now more about indices:

iSelect

Structure (in equal proportions):

  • Polar
  • ProfitLine
  • Multitrend
  • Asmodeux
  • Clever
  • Solandr

The index will be a kind of a “sample” from “A” rating, as its name suggests.
In creating it, there will be no specific logic and clear criteria. In fact, it will be a freer and more dynamic version of iComposite, and, to a greater extent, will reflect the opinion of another employee of the company.

We have modeled this index, based on the current trading history of its managed accounts.
Let me note that this applies to all indices: The index was first compiled, and then modeled, and not vice versa. Although there could be retrospection issues.

The indicators of this index are shown below:

iSelect

iSelect*6

iSelect*10 (it is not in existence yet, we looked at the future for a break in extremum)

This history will be available on the page of the index (separated by a line with a note that the index was not in existence in this period).

iImpulse и iImpulse+

Structure (in equal proportions):

iImpulse

  • Polar
  • ProfitLine
  • Asmodeux
  • Solandr
iImpulse+

  • Polar
  • ProfitLine
  • Asmodeux
  • Solandr
  • Celdic
  • Naragot
  • SmartQuant

As it is clear from the name of indices and structures, these are indices consisting of managers using a particular kind of post-news trading system, which are also called impulse strategies.
iImpulse contains the “chosen” impulse, while iImpulse+ serves as its expanded version containing all or almost all impulse from “A” rating.
Despite the similarity of the ideas underlying the trading system of managers included in these indices, the correlation of results, compared to iComposite, is not critically higher – 0.53 against 0.44 (weekly results).
As can be seen from the history of the last 3-4 years, impulse strategies show very good results. One can say that at the moment, they are a kind of “grail”. It is unknown how long it will last, so it is reasonable to try to use it for those who have the desire. There is a high probability that all or most of the trading systems will go down simultaneously, and the likelihood that they will show good results for a long time.

The indicators of these indices are shown below:

iImpulse

iImpulse*6

iImpulse*10 (it is not in existence yet, we looked at the future for a break in extremum)

iImpulse+

iImpulse+

iImpulse+*6

iImpulse+*10 (it is not in existence yet, we looked at the future for a break in extremum)

This history will be available on the page of the index (separated by a line with a note that the index was not in existence in this period).

iAnton index or reincarnation of hibrumix, as well as migration program “Vasya”.

iAnton

Readers of Vasily Dedlovskiy’s blog have realized that accounts managed by them recorded a more than 50% drawdown about a week ago. As a result, all trades were closed and trading stopped.
Vasily decided to take a break for several months, which was absolutely a good decision, and to be able to compensate investors for the drawdown. A number of managers started trading on their accounts. The exact list will be published on his blog any time soon. The portfolio will be presented to ICE FX and Alpari, and Anton Rybin will be saddled with the task of managing the portfolio.
The structure of the strategy portfolios is likely to differ, since not all traders from those with whom negotiations are ongoing are on both platforms.

The last portfolio structure in ICE FX I was told will look like this:

  • Solandr*6 – 25 %
  • ProfitLine*6 – 25 %
  • Naragot*6 – 25 %
  • Polar*6 – 25 %

We modeled the work of such an index on history and got the following:

Vasya migration

That’s how I jokingly call a joint program (with the hib blog) by which clients, who have suffered a drawdown on hibrumix account, are transferred from Alpari to ICE FX.
We agreed on the following:

1. Clients migrating from Alpari go through the Alpha migration program instead of the usual migration.

  • The rebate bonus for a depo is 8% against 6%
  • Partner’s bonus is up to 40% against 30%

Full terms and conditions of the Alpha migration program can be found here: https://ice-fx.com/Competitions/AlfaMigration#review

2. The HWM level shifts in proportion to the amount of client’s losses in the hibrumix account and Vasya (short form for Vasiliy) does not receive compensation up to the loss level, that is, the drawdown suffered by the client will be processed despite a change in account.
Moreover, at Vasiliy’s discretion, we can arrange for a certain “bonus” for HWM level of any clients (for example, the client sank by 50%, and a 100% profit is required to compensate for the drawdown. In addition, a bonus of 20% of the losses is paid to him, and the client does not pay Pfee to the manager until he makes another +20%).

3. Offer level for referrals.
Just as a manager can now set the offer level using a privileged status and/or the investment amount, an offer level can be implemented for referrals. That is, Vasily’s referrals will go on a different offer level than ordinary investors.

4. Reduced Pfee value.
Remuneration to the manager in ICE FX account will be lower than in Alpari account.

To expand the potential audience, we are extending the Alfa migration program to all clients, who are migrating from Alpari (as from Alpha), regardless of whether they will raise funds in hibrumix account or not. Both those wishing to migrate and partners (up to 40% bonus) need to pay attention to this.
Full terms and conditions of Alpha migration program can be found here: https://ice-fx.com/Competitions/AlfaMigration#review

Despite this, Alpari, unlike Alpha, still works with clients from Russia, and it would be incorrect for us to spam everywhere with such news. Therefore, information about this will be posted only on my blog and on Vasily’s blog.

Duration of the promo is not regulated.

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