Illusions and discoveries of a forex trader

In Inspiration

I got into Forex trading while still in campus during my 3rd year through a friend of mine.

When I first got into Forex trading my interest was in stocks market but found Forex to be more attractive because of its high liquidity and ability to short sell a currency unlike the stocks market where you can only go long a stock and the liquidity is relatively low especially in our local market.

Before I got into Forex trading, I was always keen about financial markets and technology but considering the course I was taking in campus, Business Management, I had a lot of research and studying to do by myself to figure out the best way to get into those areas and build a career. Forex trading was my answer.

At start I found Forex trading to have huge investment potential, however at that time I did not fully understand the risks involved which I later came to understand generally exist in all financial markets.

All my savings

With basic training from online research I put all my savings in a live account and started trading. At start things were really good as I grew the account by more than 100% in less than 2 weeks.

At that moment I did simple compounding calculations on how I was going to grow my portfolio by doubling the account every month and realized an investment of USD 1,500 was going to grow to over USD 1 million in less than 12 months.

For sure I believed I was going to be a living proof for compounding as the eighth wonder of the world, LOL.

Huge losses

The Forex market did not spare me and in the 3rd week my bubble of making USD 1 million in less than a year burst when I made huge losses and my account was wiped out. Nevertheless, I did not give up on building a career in this industry and embarked in a new learning process this time more advanced than when I started.

More successful

I realized there was so much I had not learned in my first try and went ahead to open my second live account. This time round I was much more successful than in my first try as the account lived for a longer period though my profits were not much but eventually wiped the account again.

READ: Fear of failure keeping off many would be entrepreneurs

I embarked on a third round of learning process this time round very keen on the qualitative trading skills mostly managing trading psychology and risk management. I started reading more about automated trading and realized it would really solve most of my trading psychology and risk management challenges.

Coding

After I was convinced that automating all my trading process was going to give me better odds of profitability and stability, I embarked on mastering the programming language for automating Forex strategies. After a while I started automating simple strategies and started enjoying coding so much.

Build a career

At this point my trading started stabilizing and finally I was sure I was going to build a career in financial markets combined with technology.

I would later meet with other traders in Kenya who were doing well for themselves and started working together on joint trading ventures. In 2015 I decided to register my company Meta Capital and decided to focus on offering innovative Forex trading solutions.

READ: How differentiate yourself for personal success

Our solutions attracted both retail and institutional clients especially on strategy automation and overtime ended developing more than 200 strategies for my company and clients.

Automated solutions

We now specialize in creating automated solutions for retail traders and institutional trading desks. These are basically solutions that automate the decision making processes for traders in financial markets. They are rule based applications following pre-determined set of instructions to make trading decisions in the market. These applications are able to do quantitative analysis in the market, make actual trades, manage the open trades and exit the trades by themselves.

Human error

A recent study shows that almost 80% of Forex trade executions are made by automated systems which contributes to reduced odds for profitability for manual traders basically because when you are not as fast enough as the automated systems you get late on opportunities or even bad pricing.

Automated trading has helped me and my clients solve the following trading challenges: having to sit in front of your computer all day waiting for trading opportunities; monotony of repetitive tasks; eliminates chances for human error and emotional attachment to trades; enhances efficiency and speed in making trading decisions and executing trades; ability to run simulations and back-tests on a system before taking it to live trading.

Picking up well

Just like any other career it takes time to master trading skills and for me it has been worth every time and penny. This year we are focusing on developing fully automated hands free trading solutions with minimal supervision for retail traders and institutional investors and our first product, MetaQuant, is in the market and picking up well.

 

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