Global Risk Management Framework Model #2 was designed by Dr. Glen Brown, Chief Financial Engineer at Global Financial Engineering Inc.

The objective of this model is to provide guidance on possible solution to Multiple Time Frame(MTF) Trading when using the Global Algorithmic Trading Software(GATS) 

Global Algorithmic Trading Software(GATS) uses computer codes and chart analysis to enter and exit trades according to set parameters such as price movements or volatility levels. Once the current market conditions match any predetermined criteria within the software, the trading algorithms will execute a buy or sell order on your behalf. It runs on MetaTrader 4, the most popular trading platform in the world. MetaTrader 4 is an advanced trading platform that gives you access to a range of tools and features to help you carry out analysis and customize your trading experience.

The Software consist of two(2) important elements namely:

  • Volatility Based Risk Management  System
  • Volatility Based Position Sizing Management System
  1. For the Global Algorithmic Trading System(GATS) #0,which runs on the One Minute(M1) Timeframe , you should risk 0.125% of free equity with a Trailing Stop Loss of Two(2) times the M15 Average True Range(ATR) of the last Twelve(12) Bars
  2. For the Global Algorithmic Trading System(GATS) #1, which runs on the Five(5) Minutes(M5) Timeframe , you should risk 0.25% of free equity with a Trailing Stop Loss of Two(2) times the M30 Average True Range(ATR) of the last Twelve(12) Bars
  3. For the Global Algorithmic Trading System(GATS) #2, which runs on the Fifteen(15) Minutes Timeframe , you should risk 0.375% of Free Equity with a Trailing Stop Loss of Two(2) times the H1 Average True Range(ATR) of the last Twelve(12) Bars
  4. For the Global Algorithmic Trading System(GATS) #3, which runs on the Thirty(30) minutes(M30) timeframe , you should risk 0.5% of Free Equity with a Trailing Stop Loss of Two(2) times the H4 Average True Range(ATR) of the last Twelve(12) Bars
  5. For the Global Algorithmic Trading System(GATS) #4, which runs on the One(1) Hour(H1) timeframe , you should risk 0.625% of Free Equity with a Trailing Stop Loss of Two(2) times the D1 Average True Range(ATR) of the last Twelve(12) Bars
  6. For the Global Algorithmic Trading System(GATS) #5, which runs on the Four Hour(H4) Timeframe , you should risk 0.75% of Free Equity with a Trailing Stop Loss of Two(2) times the W1 Average True Range(ATR) of the last Twelve(12) Bars
  7. For the Global Algorithmic Trading System(GATS) #6, which runs on the Daily Timeframe , you should risk 0.875% of free equity with a Trailing Stop Loss of Trailing Stop Loss of Two(2) times the M1 Average True Range(ATR) of the last Twelve(12) Bars.

After the above configuration, the software will calculate the proper position size and execute the trade.