The Ricebowl Platform
The idea behind the Six Capital business model, says its founder and chief dealer Patrick Teng, was a brilliantly simple one—that forex trading could be simplified and made relevant to the new state of the market. “Embracing the new paradigm, we developed a business model based on thinking small, and aggregating consistent wins to create substantial profits for individuals,” Mr. Teng explains.
From his long experience of forex markets, Mr. Teng knew that high volatility can cause stress for traders, leading to mistakes or risky decisions. To screen out those stress-fueled emotions, Six Capital developed Ricebowl—a sophisticated, algorithm-based training and trading platform designed to help trainees develop their skills in a calm and disciplined way.
“All our forex traders execute their trades on demo accounts only, where no real money is involved,” says Mr. Teng. “In this way, we are able to remove the emotional aspects of trading.” Six Capital reinforces its “think small” philosophy by restricting trades to a maximum 90-second period. This innovative risk-reduction process helps amplify trades into small but highly consistent returns over time.
Coached and mentored by a panel of experienced Six Capital traders, trainees gain confidence and expertise while their demo-trading patterns generate a vast amount of insight that Ricebowl mines for high-probability trades. Six Capital’s expert panel then converts a selection of these into live trades.
Ricebowl enables Mr. Teng’s team “to map the DNA of our traders to the prevailing market conditions through the use of big data analytics, allowing the intelligent selection of high-probability winning trades to be tagged real-time.” These trades are aggregated and offered to professional and retail traders to tag for a fee.
The system requires large volumes of data. But, as Mr. Teng points out, Six Capital traders generate at least 16,800 trades every hour, 5% to 20% of which are tagged to the live markets. “To ensure we have the necessary data,” he adds, we “recruit and train Six Capital Forex Traders in China, India, Indonesia and Singapore, all on the same pay scale and bonus system, whilst imparting to them the specialized skills of Price Action Trading.”
Another key company milestone was the invention of TAGG, which will “turn the forex market on its head,” Mr. Teng says. “A large number of retail market participants could no longer access the markets in the same way as before, and this convinced me that there were great opportunities for a new player, with a new business model that better reflected the transformed forex markets.”
Understanding that the trader’s main role is to make decisions amid uncertainty and risk, Mr. Teng believes that high performers will be emotionally stable and open to experience. “I try to develop in them emotional stability” he says, “because it immunizes the trader against the stresses and strains of a job that places a premium on maintaining detachment in the face of gains or losses. I also develop openness in them, which is associated with intelligence and the ability to adapt to fast-changing environments.”
Ultimately Mr. Teng’s goal involves “empowering passionate individuals with a life-skill to earn a sustainable income with Six Capital,” he says.