Vladimir Lekhovitser: Jewish developer for Trading Forex

[CrackSmokeRepublican]

Various Jewish Mobs (Israeli, US, S. American) run and develop this type of software.......

------
Interview with Vladimir Lekhovitser (PrizmaL)

Vladimir Lekhovitser (PrizmaL) didn't wish his photo to be shown now. He explains his position as follows: "I am not superstitious, but there are certain natural laws I try to follow. For example, I think that it is really possible to manipulate or to change the fate of a person imaged in the photo". However, in case he wins, he promises to send us a picture of him holding the prize. Vladimir works in the Software House Kaful FS, a company that develops and codes AI (Artificial Intelligence) for automated trading on the markets of Forex and Futures. The company has developed over 70 profitable trading systems since 2004.

Hello, Vladimir. Could you tell us about yourself, please? What is your education? What do you do?

I don't think a formal education influences the man's way in life. It is the society's stereotyped world-view which just doesn't exist for me at all. I can give you many examples that break this world-view: It's sufficient to read the biographies of eminent persons or have a look at the statistics of the disasters the persons responsible to which were well-educated constructors or specialists in certain fields of science. There are talents and there are swots. A person who is connected to the "bank of ideas" is well aware of his or her capacity potential and goes in for learning something he or she would love to do in life. I'm an autodidact, so I make my decisions considering the voice of my soul or my intuition. Knowledge and information come to me by my request, I only should find and interpret them sometimes.

I submitted to ATC 2008 an EA I developed together with Mr. Shay S. We represent the Software House Kaful FS, a company concentrated on developing and coding AI (Artificial Intelligence) for automated trading on the markets of Forex and Futures. Our company has been existing since 2004, and today it employs 14 persons. We try to find some structures that suit us to obtain ideal results in our work. For this purpose, we use various tools, programming languages, all kinds of analyses, strategies and systems. During this time, we have accumulated in our arsenal over 70 stably profitable trading systems coded on different bases.

You said you used various tools and programming languages for your work. Could you give us any examples?

Of course, I could, but their list may be very long. Basically, we use such languages as MQL4, JAVA, C++, EasyLanguage.

Vladimir, you said your company was concentrated on developing the AI programs for automated trading. Did you use any developments in this field for your contest EA?

The Expert Advisor itself doesn't represent an AI development, the market is analyzed using Genetic Algorithm (GA), and the EA is based on this GA, correspondingly.

Can you give us any details about the GA?

We use a Fitness function to detect the quality of the indicator's alerts by a recognized model. This procedure goes through a variety of generations (various models) until a quality result is obtained. It is a very technical process that is worth a detailed study. I would recommend you to read a detailed information in encyclopedias, for example, here (Wikipedia).

Your EA trades EURGBP using certain night regularities. How did you come to that solution? Were you anyhow influenced by the EA of Participant winwin2007 much talked of last year?

We knew about winwin2007 only after the Participants of Championship 2008 had started trying to compare us. There is no connection between his EA and PrizmaL. Perhaps only the idea itself is based on similar principles.

In this Championship, not only your EA trades EURGBP in such manner. Were you surprised by that fact?

Surprised - no. It is a normal phenomenon - the "cloud" of an idea is spread widely. Those adjusted to certain waves can get the same idea simultaneously, like it was with that of radio or telephone.

Your EA trades at the moments of minimum volatility on EURGBP. Do you detect such periods using an indicator or did you simply choose the time of day, most favorable for trading, on statistical basis?

Time bands and the behavior of EURGBP were detected using the selected GA results. We obtained the levels of TakeProfit and StopLoss after long optimizations with the Strategy Tester of MetaTrader 4.

Most EAs that have reached the upper lines of the table of Participants with profits received from trading EURGBP make trades by opening positions inwards a certain channel. At the same time, some authors of those EAs feel offended if somebody calls this strategy pipsing, and say that it must be called scalping. What is your opinion about whether there is any difference between pipsing and scalping? If yes, then what is that difference?

As to our EA, PrizmaL, it belongs to the family of PH (Pips-Hunter) strategies. Those comparing it to scalping, or pipsing, are mistaken. Perhaps, they lack information or experience in trading.

The main difference between those systems is that a quality EA based on a scalping strategy observes the price changing bar and catches price leaps up or down. Once having recognized such a leap, the EA opens a position in the direction of price changing or in the opposite direction, according to the trading idea it is based on. There is another, cruder alternative for trading by scalping: It differs from the first one by that the EA tries to open dozens of positions within a relatively short period of time. However, no broker would allow such trading. Both versions of this strategy have similar disadvantages. Testing such EAs in the Strategy Tester, you shouldn't rely on their results. The reason is the logical code of the program, which attempts to overcome the file of historical prices, that's all. This situation vividly shows the relationship between an EA and the Strategy Tester. The Tester doesn't, basically, give troubles processing the requests of such an EA and allows it to open technical positions differing from those of real trading. That was many times tested by comparing the results of real trading to those obtained from the Strategy Tester for the same period of time.

Now let's talk about the strategies of the PH (Pips-Hunter) family. These strategies are based on the alerts of indicators on small chart timeframes, such as M1-M5-M15. Speaking about indicators, we should consider another important aspect: The own, external indicators used for such a strategy are not always able to produce a suitable alertm which is not the case for the built-in indicators of the terminal. The positions are aimed at reaching the distances rather close to the market price, ranging from 3 to 15 points. Open position holding time makes 10-30 minutes, and 1-5 minutes on some rare occasions. The amount of alerts for opening positions in average doesn't exceed 5-7 alerts within a day. In the family of PrizmaL, there are versions that only work one hour a day and have time to open one or two positions. The relevance between the results obtained in real trading and those obtained in the Strategy Tester is about 95%. If we compare the EA's work on demo accounts with the real one, we won't see an essential difference between them. They are practically identical.

What indicators are used in your EA - any custom ones or standard ones, widely reffered to?

In PrizmaL, we only use the indicators written using MQL4 and built-in in MetaTrader 4. The quality of their alerts is higher than that of external ones. As to developing new indicators or manipulating the existing ones, we only do this if we cannot find anything suitable in what we have now.

In the description of your contest EA, you wrote that 17 external parameters had been used in it. Many people (including the well-known authors of books on technical analysis) believe that such a large amount of parameters is an evil and may result in fitting the trading system to history. How would you comment on this?

--------

PrizmaL was made by Kaful FS. a software house
specialized in developing EAs - expert advisors (automated trading systems) for the forex market. The PrizmaLEA team offers vast understanding of the forex market and with the participants in this market. PrizmaL, a EUR/GBP EA belongs to a family of PH (Pips-Hunter) strategies. The EA was optimized for various risk/revenue demands. PrizmaL is a pure technical analysis system, its working on a specific pattern we identified in the market.... [more]

Download1000 KB   US$ 100.00, EU€ 73.65, GB£ 65.79    OS: Windows
License: Free to try
Total downloads: 38
Last updated: 15 May 09
In: System Utilities

http://prizmal2040.com/

I respect people writing books on the topics they don't work at in their life. 17 versions of parameters were obtained during optimizations for the 10-year history, which have been bringing us profits on real accounts for a long period of time. Fitting means the setting parameters obtained within a short-term optimization on history.

Does this EA trade on a real account? Do the profits on a real account and on the Championship differ from each other?

Of course, it does. What, in your opinion, should one do with an EA that produces real money? When discussing whether to participate in the Championship or not, we unambiguously decided: "NO". Then, after I had come home and started thinking of this matter alone, I changed my mind and wrote something that could just participate in a competition: and aggressive and risky version of the EA. In the code of PrizmaL that is now participating in the Championship, two blocks are absent - it is caused by the necessity to adjust the EA to the Championship conditions. According to the Strategy Tester results for the period of the Championship, the EA must have a profit of about $300 000 now. It is an undeniable fact to me that EA PrizmaL can take the first pace in the Championship. Its balance graph is always up-directed regardless the market mood. On our accounts and on the accounts of our clients, we use a less risky but equally profitable version of the Expert Advisor.

Does this trading approach work for other currency pairs? What is the difference between those pairs and EURGBP?

Yes, we work with some other pairs. There are some small modifications made to the EA for each specific pair. We obtained this data during a long-term work, so it is our intellectual property.

We can characterize the trading style of your EA as follows: Better an egg today than a hen tomorrow, as often as possible. Is this the ideal trading system? Why was it this exactly system you had chosen?


Distribution of profits obtained by EA PrizmaL, in points.

There is no ideal trading at all. We have many strategies that hunt hens, too. I chose this strategy for the Championship just because it was the best one considering the conditions published in the Championship Rules, and because it produces stable profits without hoping for a chance. The Ea makes many accurate profitable trades that draw a beautiful balance graph for the Championship, moving up.

What can you say about the Participants of ATC 2008? Whose EA seems to you to be most interesting?

It is impossible to give an accurate estimate of a trading system without knowing how it behaves, for example, on history in the Strategy Tester. For me, the minimum period of testing a strategy is one year in the Strategy Tester and one month on a demo account to make sure that the code is written correctly and there are no essential differences in trading.

I never comment on people or their work - it doesn't produce anything constructive or useful. I'm ready to use my time for enjoying the results of the work, no matter mine or others'. Radiating negative emotions always implies a destructive element. On the forums of and in discussions about the Championship, in the topics devoted to trading, traders often talk about that their EAs are good, but not often profitable: either entering was ok, but closing failed, or flat started and his EA is unlucky on flats; or something happened and the price upset all StopLosses; or today their EA shows itself in all its beauty and tomorrow it omits closing a profitable trade and takes only the rests; and those whose balance charts are moving up accurately complain of that their EAs don't work on real accounts. A depressing picture. The vector of these traders' intentions is initially doomed to failure. And it is not important how much time they would spend on sitting and studying speculations on markets. There are traders of two types only. Traders of the first types are those whose thoughts of their EA working on their account or of their open positions makes them feel that the ground is slipping from under their feet, which at best results in stagnation. Traders of the second type are those just enjoying the results of their work.

If ATC 2009 takes place, what EA would you submit: the same one or another one?

We are developing a system now the indicator of which should be connected to ESA (European Space Agency) or, more specifically, to Kopernikus GMES. This indicator can get information at first hand. It will be connected directly to a space fleet of various sattelites informing about forthcoming crises on the Earth. This will be like getting weekly weather forecasts from meteorologists. Having such information, the indicator can inform us about forthcoming changes on the market before the crisis starts affecting it. This indicator will probably accompany other trading ideas that you may get to know on the Championship in 2009.

You wrote in your Comments that you had received over 2 000 messages offering to buy your PrizmaL. Are you going to sell your EA?

During the Championship, we received and are stilll receiving many messages containing various commercial offers related to Expert Advisor PrizmaL. We discussed on all those matters and, as of the moment, have decided that PrizmaL should be used in various commercial systems within the walls of our office. The services should be divided into groups for different clients, such as banks, investment trusts, brokerage companies, and private individuals. Other systems will be used, too, for variety's sake.

Thank you for your interview, Vladimir. All the best and good luck!

http://championship.mql4.com/2008/news/511