FAQs.

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My Velvet X

What is the Investor Password?


The Investor Password can be used to login to MetaTrader 4, but only gives read-only access. When accessing an account with an Investor Password, no trades can be influenced. Velvet needs your Investor Password to determine the commission amount, you set it during setup.




Does Velvet have access to my VPS?


Velvet only has access to your VPS for maintenance and updates.




If I withdraw, how soon do I get my money back?


The payout of your money is managed by your broker. In the case of IC Markets Ltd. payouts via Paypal are made immediately, by credit card in 3-5 working days. Link




How can I monitor my positions mobile via Smartphone/Tablet?


To do so, you need to connect your MetaTrader platform to your smartphone. Under this link you will find instructions: Video




What are the transaction fees for positions?


The amount of transaction fees depends on your account and broker. In the example of IC Markets' Raw Spread Account, this is 5 EUR per lot. This means for a position size of 0.01 lots: 5 cents per position.




How can I track what the algorithm does?


With the Velvet X Allrounder and Business Package you can easily dial into your VPS and watch the algorithm live. Alternatively, you can connect MetaTrader 4 to your smartphone or tablet and track your positions on the go.




How much manual effort do I have when operating Velvet X?


Almost none. Velvet X is designed to act 100% autonomously, according to start parameters. The algorithm does not require any input from you once it has been started correctly. The VPS should be checked and updated occasionally. You can check your account balance and positions via App or VPS and intervene manually as you wish.




Which broker should I choose?


Velvet does not give any guidelines or recommendations regarding the choice of your broker. All you need is a high degree of leverage (optimally 1:300+) and a broad product portfolio. Example: IC Markets.




Should I invest all my capital in Velvet X?


This is entirely your decision. However, you should be aware that investing with Velvet X is exposed to risks, as with other investment opportunities. You act on your own responsibility.




Do I have an overview of the individual transactions?


Of course, via MetaTrader 4 or the MetaTrader App you can view and freely shape your portfolio.




Can more Velvet X be opened with different parameters?


Yes, but only on a single brokerage account. Your Velvet X version is limited to one account number - on this account you can start as many Velvet X variants as you like.





General & Getting started

How can Velvet generate such returns?


Velvet's recipe for success is an adaptive trading logic, active risk management and intelligent diversification. Despite the high returns, the client must be aware that returns can only be generated with the corresponding risk. That is why the relationship between risk and return is of particular importance to us when developing our products.




Why don't you just manage my assets?


We only act as a software development company, as we see this as our core competence at this point in time. This allows us to invest more time and effort in the development of unrivalled algorithms.




Is there a webpage?


... what a question.




What is the minimum investment amount?


In general, there is no minimum investment amount. However, this depends on your personal settings of Velvet X. With the default settings an average of 5.000 EUR per 0.01 lots of position size is required.

Invest only as much as you can lose without changing your current standard of living! Your investment is subject to a risk of total loss.




Are there more products than Velvet X?


Not at the moment, unfortunately. Our team is constantly developing new strategies to help our clients to beat the overall market efficiently in the future.




Can I check the performance of Velvet X before I get on board myself?


Sure, we have several live accounts that are tracked and verified by Myfxbook Ltd:

Performance 1

Performance 2




Where can I see the performance and more statistics about Velvet X?


There:

Performance Daten 1

Performance Daten 2




Why is Velvet not a financial service provider?


We only act as a software developer and reseller, as we see this as our core competence at this time.




How can I become a customer?


Simply request a non-binding offer by clicking on "START NOW". You will receive an offer after a short time. After choosing your package and submitting your broker account data you will get access to your Velvet X (optional incl. VPS). The setup and start of the algorithm then takes only a few minutes.




Are there any system requirements?


With the packages Allrounder and Business, there are no system requirements, because you get a VPS provided. In the package Lite: Windows 2000 or higher, with a CPU with 2.0 GHz or faster and at least 512 MB RAM (1 GB recommended). Screen resolution of 1024 x 768 or higher and an Internet connection speed of 56 kbps or faster.




How does the process work after I have contacted you?


You will receive a non-binding offer after a short time. After choosing your package and submitting your broker account data you will get access to your Velvet X (optional incl. VPS). The setup and start of the algorithm then takes only a few minutes.




Can I become a customer although I do not live in Germany or Austria?


We'd be glad to welcome you. Our product can of course be used in all countries.




Is the cancellation free of charge?


Of course. If you cancel, only the total amount outstanding at that time will be commissioned.




How can I cancel my Velvet X subscription?


Simply contact us by e-mail at info@velvetfx.de with your account and customer number.




Who can I contact if I have any questions?


By sending an e-mail to info@velvetfx.de you can reach our support team, which will help you with all your questions.





Logic Velvet X

Why have my positions not been closed even though the price has turned?


The trading logic of our algorithm is determined by two indicators. Only if both indicators match, a signal is generated and trades are opened or closed. Therefore, a change of direction in the price does not necessarily mean that positions are closed. Possibly the algorithm anticipates that this is only a short-term reset and that the price will soon return to the original direction.
You can also easily check the status of the indicators in your VPS. The described logic corresponds to the standard settings - these can be changed freely.




The positions were in high profit, this has now become less again. Why did the algorithm not close the positions?


If positions are not closed, it is because the trading logic parameters are not met. This may cause positions that were originally positive to turn negative. Do not be unsettled, the algorithm anticipates an even higher/lower price level (buy-side/sell-side) than was previously reached. The algorithm is designed to hold each position for 2-3 months, so consider using the algorithm to manage the positions long enough before you intervene manually.
The described logic corresponds to the standard settings - these can be changed freely.




What do the arrows on the overview show when buying / selling?


The arrows on the interface of your MT4 Velvet X algorithm show you the signals of each indicator on the respective currency pair. A green arrow up means "Buy", a red arrow down means "Sell", grey arrows or grey X mean "Neutral". For the algorithm, only the common signal of both indicators counts. This means that only when both arrows are green or red does the algorithm act. If the colors of the arrows are different or if one signal of both is "Neutral", the algorithm does not act.
The described logic corresponds to the standard settings - these can be changed freely.




Why is the grid of different sizes?


Initially, the grid has the size you entered in the "Gridsize" input (default value: 5). It can happen that grids are partially filled and the course then rotates, so that the algorithm deletes the remaining pending positions and thus creates a smaller grid. Larger grids than your input can be created if several signals are generated at different times in a similar price region.




What does VV TR tell us?


VV TR is one of the indicators for the decision making of the Velvet X algorithm. VV TR is a so-called trend sequence indicator. Using moving averages, it calculates the strength of a single currency across the entire currency portfolio and thus determines its general trend direction. The arrows for VV TR in the user interface show the anticipated trend direction (arrow up / arrow down / neutral).




What does VV HL tell us?


VV HL is one of the indicators for the decision making of the Velvet X algorithm. VV HL is an indicator that measures the fluctuation range of the price and can use this information to make decisions about whether the current price is relatively high or low. The arrows to VV HL in the user interface show the valuation of the current price. Arrow high = price low i.e. rising prices are anticipated. Arrow down = price high, i.e. falling prices are anticipated.




How many positions does the algorithm open?


By default, there is no fixed limit for the number of items. However, your broker may set a maximum number of positions (e.g. IC Markets: 200). The algorithm recognizes your broker and shows you in the user interface the maximum number of trades allowed with your broker and the number of your currently open trades. On average, the algorithm has constantly opened about 130 positions with standard settings. With a lot size of 0.01 lots per position this corresponds to 1.30 lots.
The described logic corresponds to the standard settings - these can be changed freely.




What happens if the number of trades reaches the maximum number allowed?


If the number of open and outstanding trades on your platform reaches the maximum set by the broker (displayed on your Velvet X user interface) it is impossible to open further positions. In this case you should consider closing positions manually (e.g. open profit) to maintain the algorithm's ability to act. Under normal market conditions this maximum is rarely reached. In such a case, you will be contacted and assisted by support.




How long are positions being held?


This depends on the setting parameters you have defined. With the standard settings, the algorithm holds positions for an average of approximately 56 trading days. This corresponds to approximately 2.5 months.




How long or short term is the strategy of the algorithm?


In general, you can determine this yourself via the setting parameters. According to the standard settings, the algorithm acts on a medium-term time horizon - positions are held for about 2.5 months. With these settings, no day trading / high frequency trading will take place.




Why were pending orders canceled?


The algorithm automatically deletes pending orders that no longer match the analysis of the respective pair.




How many positions are opened / closed per year?


This depends on your personal settings. With the default settings, the algorithm opens and closes about 700 positions per year.




How does the risk management of Velvet X work?


To reduce risk, Velvet X trades diversified on many currency pairs. In addition, positions are disposed of when market conditions change and hedged with negatively correlating positions. If desired, Velvet X can also weight currency pairs with low risk and protect your capital with a hard stop in case of doubt.





Investment Basics

What are swaps? Can they be influenced?


A swap, also known as a "rollover fee", is charged when you keep a position open overnight. A swap is the difference in interest rates between the two currencies of the pair you are trading. It is calculated depending on whether your position is long or short. You cannot influence the SWAP fees, they are set by the market. Swap fees are already included in all performance presentations of Velvet.




How are swaps calculated?


Swap = (pip value * swap rate * number of nights) / 10 Example:
Trade 1 mini lot or 10,000 units of GBP/USD (long) with an account denominated in USD.
Pip value: $1
Swap (long) rate: -3.3154 Swap fee: (1* -3.3154 * 1) / 10 = -$0.33




What's a pip?


A pip is the smallest change in value of the exchange rate of a currency pair. Because currency prices usually move in tiny steps, they are quoted in a standardized unit called pips. Traders often use pips to refer to profits or losses. The actual amount of money a pip represents depends on the pip value of the currency pair. For example, if the EUR/USD rate moves from 1.2250 to 1.2251, this is ONE pip. In most currency pairs, one pip is 0.0001 of the currency.




What is a lot?


Lot is the unit of measure for position size commonly used in foreign exchange trading. A full lot is a very large unit of measure, corresponding to 100,000 units of the underlying currency. By default, the Velvet X algorithm trades with a fixed position size of 0.01 lots (1,000 units). This is the smallest available trading unit for most brokers.




What is roll-over?


Rollover is the process of moving open positions from one trading day to another. Most brokers and trading platforms perform the rollover automatically by closing all open positions at the end of the day and simultaneously opening an identical position for the next business day. During the roll-over, the algorithm temporarily suspends trading (15min). During the rollover, the swap is calculated.




What is an indicator?


Indicators are mathematical calculations that are usually used to forecast price changes in the financial market. They are calculations that take into account the volume and price of a particular financial instrument. By using indicators, traders and algorithms can make decisions about market entry and exit.




What does Forex mean?


Forex stands for "Foreign Exchange" and refers to the buying or selling of one currency in exchange for another. The foreign exchange market is a global marketplace where currencies are traded and where exchange rates are set for each currency. It is a decentralized or over-the-counter (OTC) market. In terms of trading volume, the foreign exchange market is the largest financial market in the world, with an average daily trading volume of USD 5.1 trillion.




How does foreign exchange trading work?


Foreign exchange trading is the simultaneous purchase of one currency and sale of another. When you trade in the foreign exchange market, you buy or sell in currency pairs. Each currency in the pair is listed as a three-letter code. For example, USD stands for the US dollar and CAD for the Canadian dollar. In the USD/CAD pair, you buy the US dollar by selling the Canadian dollar. In most cases, foreign exchange trading for retail investors is done through CFDs (Contracts for Difference).




What is a trading algorithm?


A trading algorithm is a software that analyses and trades the financial market using statistics and mathematical formulas according to user specifications.




What is a VPS?


VPS stands for "Virtual Private Server". This is a server that you can access from your PC or Mac. A VPS acts like a PC that you control remotely and that runs around the clock. Ideally, your algorithm runs on a VPS to be able to react to the market around the clock.




Why is equity not moving on weekends?


On the weekends, the foreign exchange markets are closed, so no transactions can be made between Friday and Monday and the account balance remains unchanged. You can check the trading hours of the respective instruments with your broker.




What does margin level mean?


The margin level is the percentage value based on the amount of equity versus used margin. The Margin Level allows you to know how much of your funds are available for new trades. The higher the Margin Level, the more free margin you have available for trading.




What is a broker?


A broker is a financial intermediary that brings together the counterparties to a transaction without being involved in it. In foreign exchange, a broker is an agent or company that executes orders to buy and sell currencies for its clients. They act as intermediaries between banks, bringing together buyers and sellers in exchange for a commission paid by the initiator or by both parties. Brokers are agents who work on a commission basis, not principals who act on their own account.





Investment

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Velvet GbR

Claude-Dornier-Str. 25, 73760 Ostfildern

T.:  +49 711 67443682

M.: info@velvetfx.de

W.: www.velvetfx.de

Gesellschafter: Julius Franck-Oberaspach, Jonathan R. Hirsch

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