Systematic trading at Mashreq Bank
Investment Services
Category 2005 2006 2007 2008 2009
AED millions
AED millions
AED millions
AED millions
AED millions
Net Advances 19,985 26,735 34,983 54,883 47,730
Customer Deposits
30,005 34,656 48,287 51,477 53,658
Gross income 3106 2828 3851 3983 4962
Net profit 1739 1571 1901 1642 1000
Total Assets 46,542 56,745 87,627 93,243 94,261
Share Holders Fund
7,259 7,378 9,614 10,065 11,273
Review of Key Highlights 2005 - 2009
The system does all the work for you:
Our systems are watching and analyzing the markets 24/24, looking for the best opportunities to make profits.
Reporting is sent monthly but we also sent a weekly automated report.
Clients can also check their balance at any time
When a client has deposited and has been accepted by the due diligence of Mashreq bank (Known as KYC (Know your client) ).
The trading can finally start.
Mashreq Bank not only is your depositary bank, Mashreq also allocates some of its own resources and trades the models.
Mashreq deals on the same prices as its clients, and has the same risks. Unlike other products, we work together for a common goal: Generation of capital.
Mashreq recognizes the risks of counterparties.
Thus we employ multi feed for multiple reasons:
Best PricesReducing the risk on having a single counterparty in major events.Because we deal in Nostro accounts, we can take the best price of any feed and exit on another feed.
Only through the management of risks can a system achieve and keep its performance.
We have strict risk control on every trade:
The model finds an opportunity and sends an order to one of feeds:
The order comes always with a stop limiting losses.
The order is tracked and updated tick by tick as the stops can move to decrease risks (when the trade is positive).
The model has a feature in which in case of unnatural market conditions, all positions will be closed at market (in any of the feeds, that comes with the first price available).
The model does not take more than a few positions till it has locked some of its positions in profits with stops raised to its entry, only then does it add more positions to the existing portfolio positions
Example of a trade:
Symbol: EURUSDOrderType: BUYLots: 1MOpenPrice: 1.2733OpenTime: 2010.09.07 20:19Take Profit: 1.32010000Stop loss: 1.2689
System PairCapital Start: Capital End Gains in % Gain amount
EURO
100,000 421,001
321% 321,001
USDJPY
100,000 496,309
396% 396,309
USDJPY
100,000 524,753
425% 424,753
All Systems
300,000
1,442,063 381%
1,142,063