Frequently asked questions
Everything you need to know about the product and how it works.
Opus is an innovative platform dedicated to creating cutting-edge models for Currency trading. We have chosen to specialize in this intricate asset class, recognizing the unique challenges and opportunities it presents to traders worldwide.
Our primary goal is to make fundamental analysis accessible to every type of trader, from novices to seasoned professionals. We understand that fundamental analysis is a crucial aspect of currency trading that often goes unexplored due to its complexity and the extensive knowledge required to generate meaningful trading ideas. We aim to change this paradigm.
At the heart of it there is a sophisticated statistical model that revolutionizes how traders approach fundamental analysis. We've developed a system that effectively removes the guesswork and subjective interpretation often associated with economic data. Instead, our model allows the numbers to speak for themselves, providing clear, data-driven insights.
By leveraging analysis techniques, we transform complex economic indicators into actionable trading signals. This approach ensures efficiency and objectivity in decision-making, allowing traders to base their strategies on solid, quantitative analysis rather than intuition or speculation.
Our model is designed to tackle one of the most challenging aspects of Forex trading: interpreting the vast array of macroeconomic factors that influence currency movements. We've streamlined this process, making it possible for traders to quickly grasp market dynamics without spending years studying economics.
In essence, Opus is more than just a trading tool; it's a bridge between Macroeconomics and practical trading strategies. We empower traders by providing them with a robust Global Macro framework for understanding market fundamentals, ultimately helping them navigate the Forex market with greater confidence and precision.
Whether you're new to Forex trading or looking to enhance your existing strategies, Opus offers a unique solution that brings the power of comprehensive fundamental analysis within reach. Our goal is to level the playing field, giving every trader the opportunity to harness the full potential of economic data in their trading decisions.
The model framework operates using a Top-Down Global Macro strategy, focusing on key economic indicators to evaluate current market conditions based on historical patterns. Here's a breakdown of how it works:
Top-Down Global Macro Approach:
We start by examining major economic indicators, analyzing their past behavior to understand the current economic scenario. This historical perspective helps us predict how similar situations might unfold.
Core Economic Models:Our framework is built on the BEER (Behavioral Equilibrium Exchange Rate) and RPPP (Relative Purchasing Power Parity) models. These models guide our assessment of currency valuation by considering inflation and purchasing power changes.
Currency Valuation:We evaluate the economic health of each country's currency in a pair, focusing on inflation nuances that affect purchasing power and currency strength. This dual analysis provides a comprehensive view of each currency's value.
Standardized Assessment:
By standardizing our assessments, we ensure that each country's economic conditions are evaluated on a comparable scale. This allows for an accurate comparison between the two currencies in a pair.
Relative Analysis:
We conduct a relative analysis to compare the standardized assessments of both currencies. This step identifies which currency might be stronger or weaker based on current economic conditions.
Consensus and Trading Ideas:
A trading idea is formed when all layers of analysis—historical behavior, economic models, and relative assessments—align in the same direction. This consensus provides a strong basis for a trading bias.
By integrating these elements, the Opus model framework removes much of the guesswork and complexity from fundamental analysis, offering traders clear, data-driven insights into currency trading opportunities.
The Opus model is designed to handle the complexities of fundamental analysis for you, providing a solid and stable foundation from which you can build your trading assessments. By analyzing key economic indicators and historical data, the model generates reliable insights that you can seamlessly integrate into your own trading strategy.
Whether you're interested in day trading, swing trading, or position trading, our model offers the flexibility to apply these strategies without requiring extensive knowledge of macroeconomic factors. It simplifies the process by delivering clear, data-driven signals that you can trust, allowing you to focus on executing your trades with confidence.
In essence, the Opus model acts as a powerful tool that complements your trading approach, enabling you to blend its insights smoothly with your personal strategy. This means you can make informed decisions and adapt to market conditions more effectively, all while leveraging the robust analysis provided by our model.
The beauty of our model lies in its accessibility – it does all the heavy lifting for you in terms of fundamental analysis. You don't need extensive knowledge or experience to work with it, as it delivers clear and straightforward biases. This means that even if you're new to Forex trading, you can benefit from the model's insights.
However, while the model provides robust analysis and clear trading biases, a minimal level of trading knowledge can be beneficial. This is primarily to help you navigate market conditions and optimize your entry and exit points. Here's why:
Timing: Sometimes, the model might identify a bias that's correct but slightly early. A basic understanding of market dynamics can help you fine-tune your entry points.
Volatility Management: Recent news can sometimes cause wild volatility and create sketchy chart patterns. Some familiarity with market behavior can help you recognize when it might be wise to wait for markets to settle before entering a trade.
Risk Management: Basic trading knowledge can help you avoid unnecessary drawdowns and know when to hold or exit trades.
Market chaos: There are times when markets experience extreme turbulence. A bit of experience can help you recognize these situations and potentially stay away from trades during periods of excessive noise.
It's important to note that experience and some trial and error with the model are key to mastering this tool. As reported by our users, becoming proficient with the model is a journey. While the model provides valuable insights from the start, users have found that their ability to interpret and apply these insights improves over time. This hands-on experience allows traders to better understand how the model's biases play out in various market conditions and how to best incorporate them into their trading strategies.
In essence, while our model is designed to be user-friendly and doesn't require extensive trading experience to start, a basic understanding of market dynamics and dedicated practice with the tool can significantly enhance its effectiveness for you. The model provides you with a solid foundation of fundamental analysis, and your role is to apply these insights wisely, considering the current market environment. With time, practice, and a willingness to learn from both successes and mistakes, you'll likely become more adept at blending the model's biases with your own observations of market conditions, ultimately maximizing the benefits of this tool.
The model is designed to be a comprehensive, ready-to-use solution that doesn't require customization from the user's end. All parameters, criteria, datasets, and weightings within the framework have been carefully balanced and set by our team of experts. This approach ensures that you're working with a robust, professionally calibrated tool right from the start.
It's important to understand that the model's strength lies in its carefully constructed framework, which is the result of extensive research and testing. The parameters are not customizable by individual users, as this could potentially compromise the model's effectiveness and reliability.
However, this doesn't mean the model is static. We recognize the dynamic nature of financial markets, and our team regularly conducts revisions and updates to keep the model in step with evolving market conditions. During these periodic reviews:
Existing parameters may be adjustedSome datasets might be removed if they're no longer relevantNew datasets could be added to enhance the model's predictive power
These changes are implemented based on thorough analysis and testing by our team, ensuring that the model remains accurate and relevant without requiring input from individual users.
By maintaining control over these aspects, we can guarantee that all users are working with the most up-to-date and effective version of the model. This approach allows you to focus on applying the model's insights to your trading strategy, rather than worrying about the intricacies of parameter adjustment. In essence, while you can't customize the model's internal workings, you can trust that you're using a tool that's continuously optimized by professionals to deliver the most accurate and useful trading biases possible in the ever-changing Forex market.
The model's data is updated weekly, specifically over the weekend. This timing is carefully chosen to ensure that all relevant datasets from various countries are included, as different countries release their economic data on different days and timeframes. By updating over the weekend, we can balance out these discrepancies and prevent premature valuation of countries that release their data earlier in the week compared to those that take longer.
Regarding new features, the model undergoes periodic reviews and enhancements to ensure it remains aligned with the dynamic nature of the Forex market. While the exact frequency of feature updates can vary, our team is committed to continuously improving the model. This involves incorporating user feedback, integrating new analytical techniques, and adapting to changes in market conditions.
These updates are implemented with the goal of enhancing the model's functionality and accuracy, providing you with the most effective tool for generating trading insights. By keeping both the data and features up-to-date, we ensure that the model remains a reliable and powerful resource for your trading strategy.
While our model is designed to provide robust and reliable trading insights, it's important to understand its limitations:
Timing Precision: The model generates long-term biases based on fundamental analysis. However, it doesn't provide exact timing for entry and exit points. Traders may need to use additional tools or their own judgment to fine-tune trade timing.
Short-term Volatility: Our model focuses on medium to long-term economic trends and may not account for short-term market volatility caused by unexpected news or events. During periods of high volatility, the model's predictions might temporarily diverge from market movements.
Dependency on Data Quality: The model's accuracy is contingent on the quality and timeliness of the economic data it receives. Delays or inaccuracies in data reporting from various countries could potentially affect the model's output.
Market Anomalies: In cases of extreme market conditions or unprecedented economic events, the model's historical-based analysis might not fully capture the impact of these anomalies.
Technical Factors: The model primarily focuses on fundamental analysis and may not incorporate technical indicators that some traders rely on for decision-making.
Adaptation Lag: While we update the model regularly, there might be a slight lag in adapting to new economic paradigms or shifts in market behavior.
User Interpretation: The effectiveness of the model partly depends on the user's ability to interpret and apply its insights in conjunction with current market conditions.
Despite these limitations, our model remains a powerful tool for Forex trading. It provides a solid foundation of fundamental analysis that, when used in combination with other trading tools and personal judgment, can significantly enhance trading strategies. We continuously work on refining the model to minimize these limitations and provide the most accurate and useful trading biases possible.
The Opus model is delivered as a comprehensive package of interconnected spreadsheets, designed to provide a thorough analysis of the Forex market. Here's how our service is structured:
The model consists of 12 specialized spreadsheets:
Endogenous Analysis Spreadsheets (10):
These spreadsheets form the core of our model, each dedicated to assessing the intrinsic valuation of a specific country's currency. We cover ten major currencies:
US Dollar
Australian Dollar
Canadian Dollar
EuroSwiss Franc
New Zealand Dollar
Japanese Yen
Swedish Krona
Norwegian Krone
British Pound
COT Report Spreadsheet:This spreadsheet incorporates data from the Commitments of Traders (COT) report, providing insights into market positioning and sentiment.
Main Analysis Spreadsheet:This is the central hub of our model. It collects and integrates data from all other spreadsheets to perform several crucial functions:
Aggregates data from the Endogenous Analysis spreadsheets
Conducts Extrinsic and Relative valuations
Generates the final Long/Short biases for each currency pair
Includes additional tools to give users an extra edge in the markets
Our delivery method ensures both security and personalization. All spreadsheets are protected to maintain the integrity of our proprietary algorithms and calculations. Each license is tied to a single user, allowing for individual access while preventing unauthorized sharing or distribution.
This structure allows for a comprehensive, yet user-friendly approach to Forex analysis. By breaking down the analysis into specific components (individual currency valuations, market sentiment, and comparative analysis), we provide a multi-faceted view of the market. The main spreadsheet then synthesizes this information, delivering clear and actionable trading biases.
Our model's design reflects our commitment to providing a thorough, professional-grade tool that covers all aspects of fundamental Forex analysis, from individual currency strength to overall market dynamics.