TradingPro Co. Market Analysis

Transcription

1 TradingPro Co. Market Analysis Contents 1. Product overview 2. Market trends 3. Competition 4. analysis 5. TradingPro Co. - strengths & weaknesses 6. Pricing model 7. Intellectual property 8. Improving market positioning

2 1. Product overview TradingPro Co. is an all-in-one suite of indicators comprising of mainstream indicators readily available with some brokers or trading platforms, and their own proprietary technology. TradingPro Co. has 3 core products, which fall within the area of expert advisor (EA) algorithmic trading, also known as trading robots; for binary options, stocks, indices, gold, silver and the FX market. Each individual product is a suite of mostly different features and indicators within it. Trading robots are sold under the premise of automated trading with little or no human intervention. Core products and summary of TradingPro Co. Product Main selling points Price Product 1 Automatic loss recovery Automatic losing trade reversal Buy-sell strategy Product 2 Automated trading Shows or acts on the best entry and exit points Product 3 Non-repainting alerts

3 2. Market trends Trading and retail traders The majority of retail traders (70% according to brokerages, 90-95% independent or self-reported data) eventually lose money trading The majority of retail traders are risk takers, with no trading education 20% of traders will state that they made a big loss in the last month Despite this, the number of retail traders grows (e.g. in the UK, by ~125,000 new traders) Algorithmic trading The emergence of AI and algorithms in the financial services sector to drive demand Algorithmic trading market to be worth US$ 21,807.6 Mn by 2026 However, some more experienced retail traders see EAs / trading robots sold commercially for low fees as a scam: Regulations China imposes a ban on certain foreign FX brokerages causing some trading restrictions No plans to ban FX trading in the US and UK and other major markets Marketing Marketing of EAs is often angled to suit the high risk-taking and limited education audience (e.g. automate trading with high returns and no losses for 400)

4 Trading-related marketing is mostly occupied by brokerages who rely on digital marketing and media buying (bidding system driving costs up ) More conventional marketing methods such as Facebook PPC restrict trading ads The majority of trading products rely on content marketing and affiliates In Europe, brokers need to have bigger guarantees of client funds Marketing restrictions on promises of future wins may impact EAs, similarly to brokers Sources: Statista.com inancial-services-sector-to-drive-demand-tmr html Fxcm.com 3. Competition The EA market is fragmented and saturated with a wast choice of competing products and alternatives - TradingPro Co. competes directly and indirectly with a number of players Similarly to TradingPro Co. - many EAs come with a complex suite of different indicators which make product-by-product comparison difficult The majority of EAs are sold via EA-specific marketplaces that have customer trust gained by independent rating systems In most likelihood, customers value confirmed results and ROI of the trading bot over the strategy itself Where does the competition come from? MQL5 marketplace (official marketplace for MT4) with thousands of providers Paid EAs Free EAs Ebay marketplace Direct competition - standalone companies offering one or more EA products Retail traders - retail traders are able to design their own EAs, using: MetaEditor (development tool for non-experts) Forex Expert Advisor (development tool for non-experts) Hiring a developer (MetaTrader offers marketplace matching developers and buyers) Coding it themselves (using their coding knowledge) Learning how to code

5 an abundance of online courses, e.g. Udemy, in addition to an industry teaching how to code EAs

6 4. analysis Method: 1. Google search for specific keywords (e.g. best trading robot, buy trading EA) 2. Research and rank order results for best performances (i.e. marketplaces sort by best, independent review sites) 3. s catering to the same audience (small retail investors) Source name Link MQL5 marketplace - best 3 EAs for MT4 in category experts Standalone companies* Method: selected by an independent reviewer (high rank in Google) Ebay marketplace *Independent ROI review of direct competitors (source: ) [screenshot of best performing EAs by ROI, drawdown and duration redacted] Scoring criteria Feature Performance Manual involvement Trust Complexity Differentiation Description ROI Fully automatic vs manual management Trust in the seller (e.g. credibility, reselling platform, reviews) The complexity of solution - one or more products Different from competition Price Price range: $0 - $1000 Market access Support Difficulty to find buyers Buyer support

7 The best performing competitors from MQL5 marketplace offer free solutions with a single feature and were excluded from the analysis To get a total number of 5 competitors, 1 of the abovementioned direct competitors was not included in the analysis Qualitative analysis Performance Manual involvement Trust Complexity Differentiation TradingPro Co Claims good performance, corroborated by videos. But no independent ROI analysis Claim little to no manual involvement An underoptimized website, no trust indicators (ratings, user reviews) High, 3 products with multiple features each Offers proprietary trading methodology #1 top performance independently monitored #2 top performance independently monitored, live account tracking (FX blue) Claim little to no Claim little to no manual involvement manual involvement Independently monitored Med, 1 product, 2 main strategies, 3 settings Independently monitored, live account tracking (FX blue) Low - copying trades/trading signals Med, Known strategies, automated low low Price Average price (price redacted) (price redacted) (price redacted) Market access Limited (underoptimized website and SEO) #3 top performance independently #4 top performance monitored, independently live account monitored Claim little to no manual involvement Independently monitored, live account tracking (FX blue) Low - copying trades/trading signals Claim little to no manual involvement Independently monitored, live account tracking (FX blue), money back guarantee, backtested. But missing social media and contact Low - continually adopts to market and predicts based on past, volume management Med, Known strategies, automated Optimized website, featured on different high ranking websites Optimized website, featured on different high ranking websites #1 Google result for a google listing Varies product to product. #1 ranked product no involvement Rating system and ebay platform add to the credibility, but bad individual product rating n/a n/a (price redacted) (price redacted) (price redacted) Optimized website, featured on different high ranking websites Good website design, but missing core information and pages, featured on different high ranking websites # Google result - very good Support address, social media, Skype, but no chat or 24/7 support access claim Contact form 24/7 No contact options Active support channel via ebay

8 Performance summary (quantitative) Scale 1-5 TradingPro Co = low Performance = high Patterns: Manual involvement Trust Complexity Differentiation Price Market access Support All products claim little to no manual involvement 2. None of the products display high trust signals (i.e. both valid results and optimized website and supports channels) 3. All products apart from TradingPro Co. are low to medium in complexity

9 5. TradingPro Co. - strengths & weaknesses Strengths A wide range of products A more complex offering of different solutions for different trading personalities and strategies than the competition Some marketing collateral, e.g. Youtube channel Weaknesses A big pool of direct and indirect competitors with little competitive advantage Better performing competitors don t bundle features into such complex all-in-one products Low access to market and underoptimized marketing Low trust 6. Pricing model EAs generally work on the one-off fixed fee pricing model Internet research for specific keywords such as: EA subscription or Trading robot subscription didn t result in finding similar products to TradingPro Co. sold on a subscription basis There are 3 other related types of investing which which work on the subscription model: 1) Trading signals (sometimes with market forecast) ) Trading platforms with own set of indicators (brokerages or brokerage affiliates) 3) Social trading - this in a way mimics EAs the most. It s in real time copying of trades of different traders, whereby as soon as trader A opens a trade, trader B (and other followers) automatically open the same trade. These are usually based on subscription models (management fee based on allocated capital) + percentage (one of the biggest social trading platforms ayondo.com charges 25% win fee) There were some exceptions 1) EA subscription: But the company doesn t look very professional and it was the first found after an extensive search

10 2) - automated trading and signals, but focused on cryptocurrencies only 7. Intellectual property Differentiation With thousands of different indicators and strategies readily available, the software is likely to be unique, but so are other competitors (there is,, of course, a possibility that someone has developed an indicator that is very similar/same, but bundling them in this way into 3 separate products seems to be the real differentiator for TradingPro Co.) Creating a different EA is the way of differentiating of the majority of robot providers - creating a pool of different solution It s likely that the real differentiation can happen On the front end: displaying verified results and a live account Backend: free demo which will support the results and produce real value However as seen from the competitive analysis, some competitors already provide 1) Differentiated solution 2) Claims of high ROI 3) Confirmed ROI on a live account 8. Improving market positioning suggestions 1. Product marketing a. Focus on specific 2-3 key and specific features b. Link specific features to outcomes in marketing c. Break down selected elements and offer independently leading to a bigger purchase (even for free) d. Focus on innovative marketing strategies outside the industry e. Don t claim any manual involvement, experienced traders understand there can t be complete automation at this level of EA sophistication 2. Improve marketing - optimize website a. Less content b. Optimize UI/UX c. Mobile responsive

11 3. Form key relationships d. Affiliate websites ( niche sites ) e. PR/3rd party blog posts f. Major trading publications 4. Expand sales channels g. Recruit re-sellers h. Offer white label solution i. Include free versions in marketplaces j. Partner with brokerages (e.g. to be offered during sign-up process) 5. Improve trust k. Submit to independent reviewers l. Testimonials / testimonial videos i. Follow 2-3 independent users and track progress on Youtube m. Add real person(s) to represent the brand on the front-end (buyers will buy from the brand representatives) n. Track progress internally and display daily/weekly/monthly/yearly ROI