Felix is an exclusive algorithm that trades major currency pairs. It typically takes on either intra-day or short-term duration positions. Felix succeeds by identifying a higher percentage of profitable transactions, by considering over 800 data points.
Felix is deliberately written in a modular format using C++ to improve speed and security. It is stored on NY4 – the New York server that processes many global financial transactions. The software is written in C++ and in a modular format. which makes detection and duplication considerably more difficult. In addition, the algo benefits from the security of the NY4 server which houses information from the world’s central and global banks. The algorithm utilizes over 800 data points, primarily focused on technical analysis, supplemented by select macroeconomic indicators. Many of these data points contribute to proprietary indicators that have been calibrated and refined over several years. The algorithm processes signals from the data points, which are then sent to the confirmation engine. The confirmation engine evaluates the strength of each signal to determine whether to enter a trade. Once validated, the trading signals are directed to the order management system through the broker and subsequently routed to the liquidity providers. Although the trade entry process is fully automated, the signals are also transmitted via Bloomberg for independent verification by the Trading Team, who manually validate the trading positions.
Felix trades over a regulated broker, ATC Brokers Ltd, based in London and the investors cash is held by ATC Brokers Ltd in a segregated client account in Barclays bank in London. Barclays is deemed to be systemically important bank in the United Kingdom and have PRA coverage. The PRA coverage on deposits is GBP85,000 per depositor, should the cash holding bank default. Should the broker go bankrupt then the investor monies would be isolated in a separate account that could not be claimed by the creditors of the broker. Felix is traded over London LD4, London’s equivalent to NY4 a very high-quality server with the highest levels of security surrounding it.
Trades typically last just below two and half days and the longest trade been 3 months. The trading uses the logic of an intraday strategy so it should be highlighted that the algo holds trades longer than the average scalping strategy but this has helped the success of the strategy. However, it does not force close open positions as some of the industry’s intraday strategies.
The core Trading Team, in the UAE and in the United States, have the following core functions;
a. To verify all algo driven decisions with a manual technical analysis
b. To monitor, and take appropriate action, as larger positions develop
c. To mutually decide to take off specific or all pairs based on trading positions
d. To be aware of key market information and news announcements
e. To look at feedback to be provided to the coders for enhancement.
The Trading Team have collectively over 150 years of experience with a broad range of financial institutions and banks. Out of circa 132,000 trades undertaken between 10th April 2023-24, 23 manual interventions were required. In addition, to manual interventions the Trading Team also very occasionally intervene to turn off specific currency pairs for short periods of time to ensure the utilization of credit limits does not exceed 65% at any moment of time. The Trading team never undertakes back testing as it provides too many false negatives. It also does not accept paper traded accounts for similar reasons. Felix traded $4.5 billion of currencies per month in 2024 and this was the same level as a mid-sized commercial bank.
The first 20% of profits are sent on a monthly basis to the team that wrote the algorithm and the traders as per their engagement terms. The balance is then split equally between the investor and Demeter. This is because for each $1 of capital the investor invests Demeter adds $4 of its own capital. Demeter is therefore ‘subsidizing’ the investor as it provides 80% of the capital. Demeter feels that by doing so, it can maximize investors funds, which in turn allows Demeter to make more profits which can then be used for the benefit some of Demeter’s other non-trading activities.
2% is charged up front for the issuance costs and this is used to pay for the costs associated with running the programme with third party service providers. There are there no on-going management fees and no redemption costs. There is daily liquidity (on trading days) and positions are closed out after US trading hours. Funds are remitted from the brokers account to Demeter’s bank and then back to the investor. This typically takes no more than 3-5 business days depending on the location of each of the parties.
Investors are invited to subscribe to a 3 year promissory note issued by Demeter. This note has its own ISIN and CUSIP number and is being listed on the Cayman stock exchange. A promissory note is a debt instrument. A registrar of holders is also maintained. Any investor must undergo KYC first, whether the investment is made in an individual or corporate entity. The KYC process is the same as for any other financial services firm that is regulated – passport, proof of address, source of funds etc. Once the KYC is cleared then a subscription form needs to be completed and the cash sent to Demeter’s bank account as detailed in the subscription agreement. The investors have the benefit of an assignment over the net proceeds of the cash accounts held with the broker's bank. The net proceeds are the balances remaining after any margin has been consumed by the exchange. Demeter, is not a fund due to the fact that it provides the technology, traders and the majority of the capital and believes that a fund structure is inappropriate given the unique set of structural circumstances. Capital is always at risk in whole or part and investors must be aware of this point before investing. Investors should take independent legal/tax/financial advice before investing since this is not for retail investors.
For sure - either you are doing out of the goodness of your heart because you want your friend to know about this OR you want to make some commission from your friend OR you have a significant distribution network and would like to know terms for doing so.
Yes to any account in the world. Any costs with relation to currency exchange or TT fees are borne by the IFA and no amounts under $500 will be paid to save administrative costs.
Historically, IFAs have been spoon fed contractual long term, high commission insurance products because it was the only thing around. Latterly, due in part for a number of reasons but mainly regulation, commission disclosure, commission sacrifice, client awareness, technological alternatives, licensing costs, AML/KYC and so on, IFA started looking at alternatives. Firms looked at diversifying into realty, structured notes, passports and more recently loan notes all of which have a high probability of failure or not yielding what the IFA/Client thought it would. Financial advice loses out to financial product because most clients are unwilling to pay or the IFA is not adept. FX is a part of any overall strategy but brings potential rewarding returns without the lock up of capital. It should form part an IFA suitability report and fit comfortably within the risk appetite of the client. An IFA giving financial advice rather than what is vogue this month.
There will be regular updates on the website and in the GlobalIFA LinkedIn page highlighting performance and new product launches. Your clients will have their own online login for their FX portfolio, can check GlobalIFA LinkedIn but best you keep them updated for top ups and referrals to other prospects.
Should you wish to offer this to your clients, you will need the application, suitability report, AML/KYC and details of the draft promissory note. Once the client is happy to proceed, you submit the paperwork to GlobalIFA for onward approval with the FX admin team. Once accepted, they will provide TT details for the client to open their segregated account within Barclays and once the funds reflect, the returns start. They will also be given online login details to monitor the performance of their portfolio and receive updates from the FX manager from time to time. The IFA is then onboarded to include professional credentials, open a commission account showing monthly revolving balance and banking coordinates for the commission payments as instructed.
The income is 0.5% per month based on the initial investment and coupled to the performance of said investment. Based on $100k invested and the last 12-months performance, this would have equated to the equivalent of 9.8%. For illustration purposes, should the performance remain the same for years 2 and 3, the commission would be 32% and 85%. This would be paid direct on a monthly basis to an account of your choosing. While these figures look impressive, had the commission income been reinvested in the same FX strategy, the figures would significantly increase again. For the full commission workings and forecast in XLS, contact us today.
FX is a high risk strategy unless you have the skills and/or management to do it effectively. Solo day traders have to marry themselves to the markets 24/7 and HNW investors deploy FX experts to manage their portfolios. The advent of tech and AI means that small movements in FX prices can be capitalized efficiently and quickly bringing a new advantage to investors in this asset class combined with the expertise of seasoned "human" traders.
Yes. There is a list of the service providers and regulatory bodies in the site. The clients money never comes to GlobalIFA, the FX trader or any other third party other than the custodian which is Barclays (London). For HNW clients with Private Banking facilities, there is a CUSIP/ISIN should they prefer to use this method of investing.
Felix takes 800 data points, most of which are internal forms of technical analysis scanning USD, CAD, EUR, CHF, GBP, JPY, AUD, NZD only. From these data points a signal is generated which is sent to a decision-making box that assesses the strength of the signal and then makes the decision to trade. It trades in a segregated account with Barclays using ATC Brokers ensuring clients assets are ring fenced and Felix has conducted over 132,000 trades so far.
Note to be confused with a Structured or Loan Notes, Promissory Notes are a debt instrument that facilitates investors access to the FX programme. Unlike the aforementioned, this strategy is daily liquid so investors can exit their positions whenever. The full details of the Note will be supplied as part of the onboarding process with all the other suitable documentation.
No. The FX returns listed are net to the client, no other charges involved. The IFA commission revenue is derived from the trading profits that the FX manager creates.
Unlike Structured or Loan Notes where the IFA is a paid a one off % of the capital invested, this is designed on an income basis. The aforementioned Notes typically lock capital up for the client, have dubious regulatory credentials (if any) and offer lack luster performance. This FX strategy not only pays a commission based on the monies invested but also the growth of the portfolio too. Naturally this figure will fluctuate should the client top up, take a redemption and/or close the account altogether. Traditional commission from the one-off hit from illiquid, poor performing and old hat products to an increasing residual commission income stream that also offers clients flexibility and great returns will ultimately enhance referral networks and new business opportunities.
Reach out today and we can share all the details of the programme, paperwork and your onboarding so we can pay you!
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