Singapore IT Firm Developing Robust Algo Trading System Seeks Capital

Opportunity Snapshot

Investment Opportunity

We are developing Algorithmic Trading System for an online trading platform called Metatrader 4. The seed capital that we require is $100,000.

The company is registered in Singapore to strategically position our products in the market capturing a larger market share in Asia and around the world.The firm aims to give solutions to all online retail traders of FX and Commodities market who are having hard time making profitable trades by doing manual or discretionary trading. We will be providing them an alternative and better way to trade which is a tested and profitable algorithmic system or popularly known as automated trading system. We will also provide coding service for those traders who have their own strategies but require skilled and reliable programmer with deep knowledge in MQL programming and at the same in the FX market to develop their own algorithmic trading system.

The Current Trend, Demand and Opportunity

One of the most dynamic and lucrative businesses today is the currency market with an average daily transactions of $4 trillion a day. Thousands to millions of dollars are being made or lost all around the globe. Algorithmic trading is becoming a popular way of trading among individual and institutional traders. In 2004, only 2% of FX trading was algorithmic. In 2010 that number changed to 45%. This is an exciting era of opportunity for both entrepreneurs and investors who innovate towards developing algorithmic trading systems.

Company, Product and Services

We are a software development firm that will focus on delivering high quality MQL4 (MetaQuote Language 4) products and MQL programming services to aid individual traders trading the foreign exchange and Commodities market using the Metatrader 4 Platform. Our services include development of Automated Trading System (Expert Advisor), custom-built Technical Indicators and scripts (plug in).

Target Market

Everyone who is trading the FX and Commodities market and using the Metatrader Trading Platform 4 will be benefited by this system. Currently the majority of retail traders and some institutional traders who are trading the FX market are using Metatrader 4 Trading Platform and this platform is widely offered by almost FX brokerage and banks in the world.

Revenue Generation Model

The company source of income will be twofold:

Firstly, the company will develop the Algorithmic System and sell it online and off-line through contacts and partner merchants in different countries. The end product which is known as “Expert Advisor” will be sold at a price of $400 - $800 depending on the type and profitability of the system.

Secondly, we will offer MQL programming services, so that if a trader has their own strategies but has no knowledge on MQL programming, we will offer our customized coding service at a price that will start from $400 and depend on the complexities of the strategies the client wishes to apply. Aside from custom EA, we will also offer coding service for custom technical indicators and other scripts or plug in.

Company Stage and Project Timeline

The firm is in pre-revenue stage and was registered in July 2013. Initial stages of Research and Development are currently commencing and several trading strategies are already conceptualized and are ready for next development cycle which is programming for fully automated trading system.

We will develop and test 4-6 different types of expert advisors simultaneously and select the best yielding strategies to be sold. The best strategy will also be used in the firm’s proprietary trading. Each product (Expert Advisor) Development cycle is approximately 6 months. We are ready to launch our first product by March 2013.

**Please see Schedule A: Project Timeline

Competitive Advantage

Competitive Edge

For each product (Expert Advisor) we will follow a thorough five Development Life Cycle. This is to ensure that the product or EA that we will release in the public is yielding positive results. The final stage is trading the product live by using real money and documenting the results for the next three months. We will only release the expert advisor once it is yielding two months positive out of three months. All trade entries and exits will be properly documented.

Our company will be built by reputation. We will publish documented live trading results of each product so the client will be able to see that it is really yielding profitable results and can help them make money. This new practice of documenting live trading results of each EA before selling it will set new standard in the market because currently most of those companies and individuals who sell custom made EA were only run through back testing and did not go through demo trading and live trading. Among top and direct competitors of our firm in this market are Boston Technologies and

Rationale for the deal

Management Team

The foreign exchange market is in period of remarkable transformation and technology has changed the markets and the way trades are triggered and executed radically in the last two decades. The founders of this firm have the necessary skills and experience to deliver what has been promised. We are offering you to capitalize in our expertise and get an opportunity to become part of this growing industry.

A.A,is an experienced trader and is involved in heavy trading of currencies, research on different trading strategies, giving workshops about FX trading and mentoring novice traders. The last position he took in the corporate world before he begun day trading for a living, trading on behalf of others and co-founded the firm was a Head of FX Trading Desk in Dubai, UAE. He started his career in trading as a proprietary equity trader of US market then slowly moves to currency and commodities. . A.A main responsibility aside from directing the entire operation of the firm is to conceptualize strategies for trading the market.

R.R, is an experienced Software Engineer with focus on research and development, support and process automation, with extensive experience in applying full lifecycle software development. In his career, he has worked with several multinational companies including Accenture, JPMorgan and UBS. R.R main responsibilities are to program all strategies to fully automated trading system and direct the activities of information technology outsourcing, implementation and system development teams of the company.

Marketing Strategy

We are in the process of closing a deal with select companies in Singapore, Dubai and Philippines with operation in the FX and equity market and with wide presence in their area to be one of our channels of distributions. These companies will help us in marketing the product in their area. By doing this we can fully focus on R&D and significantly reduce our overhead expenses.
Aside from partnership, the firm will also engage online advertising particularly social networking sites such as Facebook and Youtube. These two sites alone have over 1 billion active monthly users from all over the world.

Use of financing

Funding Needs

The seed capital that we require is $100,000 and this will be used on the following:
(1) Research and Development stage, testing the end product in live market situation using real money. Allotment for each product is $1,000.
(2) Setting up and renting of new small office space that will serve as R&D workshop.
(3) Acquisition of additional computers with at least 6 more laptop computers. We will also need printer and furniture
(4) Marketing and Advertising – Advertising will start on the latter stage of R&D.

**Please see Schedule B: Use of Funding

Opportunity for the investor

Financials: Revenue Sample

Name of Product: Expert Advisor A
Price: $500 per license
Total Number Sold in 12 months: 300 licenses
Gross Sales: $150,000
**We will launch 3 expert advisors for 2013

**Please see Schedule C: Statement of Income and Expenses

Opportunity to Investor

We are looking for an investor who understands the risks and rewards of IT firm dealing in the financial market and is willing to invest a single stage investment amounting to $50,000 or $100,000 in a form of equity investment. We offer a very competitive return and terms to our investor.
• We will issue you 5% stake (for $50,000) or 10% stake (for $100,000) in our firm.
• Your exit is at the end of 2014 through buyback program of shares and return of capital.
• Based on a strong demand and the rising trend in this industry coupled with the firm's sound business model we see an ROI of 120% in 2.3 years.
• We will give 10% dividend by 2013 and 2014.

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