New Product Spotlight: Tradesmarter To Launch Strategix With User-Selectable Risk

Whilst binary options platform provider Tradesmarter continues its quest for further funding with negotiations still in progress, the company has engaged its efforts in building further on its corporate direction of further innovating its technology offering.

At next week's Forex Magnates London SUMMIT, the company will release Strategix, a new exotic options product within the user interface which allows traders to select their Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term strategy.

Forex Magnates today spoke to Tradesmarter's CEO Yoni Avital, who explained that, "An important part of this concept is to allow B2B partners to provide engagement tools which increase customer retention, and to separate the new trader from advanced or more experienced traders."

User Participation In Risk Management

Mr. Avital explained the functionality to Forex Magnates, and the reasoning behind adopting this method of offering a customizable risk management solution to clients: " We have been working for 12 months on a new risk management structure and a new user interface which allows trader to choose the level they want by using a slider.

"This can be moved from left to right, enabling the trader to tailor his options by moving the risk management slider on the platform, and can visually see the number go up or down. If it goes up he gets a higher payout, whereas if he moves it down, then he moves to a less risky payout," said Mr. Avital.

This methodology follows Tradesmarter's line of thinking with relation to its adoption of a policy of providing customizable solutions to end-users and B2B partners, as detailed in this summer's launch of the company's integrated social trading facility.

Social Trading Led To Adjustable Boundaries

Four months after having launched the integral social trading function, Mr. Avital explained that the company had tripled its trading volume, although the actual figures have not been disclosed.

Mr. Avital attributes the increase in volume to user confidence due to transparency. "When the options are flexible for the user, this attracts more users. For B2B partners it is a great addition to the offering because until now users had been able to offer their traders certain products to engage them and increase their lifetime value such as external social trading platforms, mobile platforms and short term options, but now they can offer something more advanced for the traders. It includes high/low with dynamic spread, range options with adjustable boundaries, and touch and no touch options with high yield.

'What is common to all of these options is adjustable strike prices and high payouts. Again concentrating on the User interface. Can see on the charts the prices, and the sliders. We view this as an innovation, and instead of copying others, we decided to create something new," explained Mr. Avital.

Tradesmarter has avoided the ladder options products that have become a popular methodology among peers, instead going down the route of doing strategic options. Mr. Avital confirmed that, "This kind of message we want to demonstrate to partners."

Lengthening The Term

Binary options for retail users has become an industry which rose from status as an unknown quantity just three years ago to a very large industry segment today, participated in by a large number of companies, most of which are brands and white labels of technology providers. As a result, the cost of client acquisition has increased, and therefore generating sufficient revenue by purchasing media, only to find that a client deposits twice and then no longer trades is becoming an important consideration.

Many binary options companies are concentrating on retention tools, as explained by Ilan Tzorya, CEO of TRADOLOGIC, in an interview with Forex Magnates in February last year. "TRADOLOGIC has considered this carefully and our solution to fending off the increasing cost of customer acquisition is to concentrate considerable efforts on providing retention tools," explained Mr. Tzorya at the time.

"Existing traders who re-deposit will even out the cost of acquisition and therefore if it costs the same to acquire a new client as the new client’s initial value, the ability to retain the client in future therefore reduces the acquisition cost over the term during which the client trades, therefore making this a viable method," he said.

TRADOLOGIC saw this as a requirement within its platform offering in order to provide more tools to the brands which are directed at maintaining traders’ attention so that they are online and logged into the website for longer periods of time, therefore more likely to trade more volume.

Tradesmarter refers to existing clients who continue to trade as advanced traders. The company detailed to Forex Magnates today that it intends to strengthen its focus on retaining advanced traders. "We aim to provide users with the ability to take existing strategies and control the parameters, profit level and strike price on an intuitive interface, the idea is to empower the trader, which should result in B2B partners being able to offer something new to more advanced traders," stated Rachel Sartini, Tradesmarter's B2B Project Manager.

"We look for high volume and not fast profit for the partner. We are looking for clients to stay long term rather than lose their money in 2 trades," added Mr. Avital.

"The platform includes this flexibility so that it is not something which goes against the client. On the contrary, it is intended to engage the user. We convey the message to the partner that they should think this way when we on-board them."

The Binary Bucket Shop. An Obsolete Model?

According to Mr. Avital, most binary brokers are looking to operate as a bucket shop, whereas Tradesmarter wishes to focus on the long-term, therefore understanding and being able to consider how to cater toward long-term needs is necessary within the software development stages.

The dynamic price indicator is a further case in point. This is a widget which shows which asset is most volatile in the market at a particular time. It does not advise in which direction to trade, but Tradesmarter considers that it provides traders with a feeling that by the calculation it provides, it indicates which is the most tradable in the market.

Boldly and somewhat controversially, Tradesmarter does not see merit in providing FX firms with a means of simply setting up a connection to the MetaTrader 4. Instead, Mr. Avital stated that, "We prefer to offer our binary options platform to FX firms in a way that it can be kept separate from any FX trading software. We are going to do some partnerships whereby FX companies can integrate through their own interface and CRM. We want to keep binary options traders with the whole feeling of trading purely binary options, and do not believe in intregrating a box into MetaTrader 4.

We do offer a shared wallet, but the end result is two different systems rather than integrating it all – keep the binary look and feel separate," concluded Mr. Avital.

The company, whilst concentrating on individuality, has not disclosed any data relating to the increase in brand onboarding as a result of these innovations, however, there are further modifications to the offering in the pipeline, with SmartCompass, a news and Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term tool provider, in conjunction with CorrSight which will be integrated into the platform, following CorrSight's commencement of binary options support earlier this year.

The new Strategix product can be viewed at the demonstration at Forex Magnates SUMMIT's Blitz event next week in London.