One of the trends we have seen this recently is the arrival of Russian based technology providers to the global trading scene. The majority of these firms had created trading systems and platforms to support the Russian capital markets sector, usually for firms trading with the RTS and MICEX. Using their existing technology and ‘know-how’ many firms have begun to target the rest of the world. Examples include Trading Solutions provider Devexperts which recently worked with Tradable on the creation of their new trading platform after working for over eight years with major Russian brokers. Similarly, Kalita-Finance has been marketing their GUI-Robot automatic trading platform to a global audience this year. Another Russian company that is quickly developing a global presence is Faunus Analytics.
Faunus Analytics is a business intelligence and data analysis company that’s main line of work in the past was acting as financial consultants to Russian investment companies. This included using its mathematical analysis to provide market forecasts, individual asset analysis, and ad-hoc data research to study internal copy financials. Faunus’s target customers included banks and asset managers such as Alfa-Bank, VTB24 Bank, and NordeaBank. After working mainly with the Russian market, Faunus Analytics decided to apply its analytics know how to the forex and binary options market. This is part of a diversification process at the company that also includes the eventual goal of launching its own asset management division based on the firm’s proprietary trading signals.
To learn more, Forex Magnates spoke to Pavel Bykov, Chief Development Officer at Faunus Analytic. Bykov explained that for forex, Faunus Analytics has created two services. The first is a market forecast product. Based on its mathematical analysis, the service provides a 24 hour target price for major/minor forex pairs and CFDs and also provides the probability for the forecast. The forecast is aimed at providing traders an estimate of market direction for the underlying asset to assist them in their self trading. Faunus’s second service is an exact trading signal which provides a specific price target, stop loss, and volume size for each trade. The trading signal is based on Faunus Analytics proprietary trading strategy which incorporates target annual gains and drawdown limits. Delivery of the forecasts and signals can be provided in numerous methods including through emails, directly pushed through a client’s platform, or auto traded.
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After applying its analysis methods to forex and other commonly traded assets among retail traders, and back testing its results, Faunus Analysis recently launched its services to the forex market. In December, US broker FXDD, and Cypriot binary options broker iOption became the first two companies providing Faunus Analytics services to clients. Bykov added that the company is in discussions with other global brokers and plans to launch with more firms soon. In addition, Faunus is working on partnering with Social Trading networks to provide its trading signals to users of the system.
The two big questions though for Faunus Analytics are how it differentiates itself from existing trading signals, and what are the regulatory issues as they in an essence providing advice to clients? In answering to how Faunus adds value compared to Trading Central and AutoChartist, two widely used tools in the market, Bykov explained that the fact that Faunus provides both a forecast and exact trade separates their offering. Bykov also believes that the diversity of choices to distribute their analysis goes beyond the level of existing products. When it comes to regulation, Faunus Analytics isn’t registered under any financial body. As such, clients using their products need to agree to a disclaimer that indicates that they agree to receive the signals.
During 2012, one of the trends we have seen has been greater interest from brokers and clients for copy trading solutions. By applying its signals with an easy to apply deliver system, Faunus Analytics appears to have created a product that fits well with current market demand and could see widespread adoption over 2013. Overall though, the long term success will come down to whether clients using the product are profitable or not.