LeapRate interview: Pavel Kulko in talks about KeySoft Group’s METAfx products

LeapRate interview… Pavel Kulko is the founder of METAfx and Integral Technology Ltd., which has later become an integral member of the future KeySoft Group. KeySoft Group was complete in 2017, when KeySoft Holding Limited acquired all the assets of METAfx, Inc.

Since then Pavel Kulko has been responsible for the development of new KeySoft products.

He joins LeapRate today to discuss in details KeySoft Group and its products.

LR: Hi, Pavel, thank you for joining LeapRate. As a start, please tell us more about the company and when it all started.

Pavel: KeySoft Group is a consortium of international IT companies, which is engaged in joint marketing, maintenance, and technical support of platforms and products using proprietary software developed by the founders of KeySoft Group.

Each company is independently owned and operated but all marketing is performed in a centralized fashion under the KEYSOFT and KEYSOFT GROUP brand.

Each company has a specific function – for example, KeySoft Holding (BVI) directs and coordinates the global development and marketing strategy and oversees the overall performance, Integral Technology (New Zealand), has core competencies in maintenance and technical support, while KeySoft Holding (US) is more experienced in distribution and upgrades. KeySoft Group provides 24/7 almost nonstop services to its customers in all markets.

KeySoft Group was born as a start-up back in the early 2000s by a group of young software engineers, including myself. At first we made custom trading strategies for traders, developing forecasting models and automated trading systems for financial markets. Later we started working with the brokers as well who required server-side solutions for the asset managers.

LR: So this is when the MAM (Multi Account Manager) product appeared?

Pavel: Yes, indeed. The first trials of the proprietary MAM software showed a great potential, this is why we started an initial funding in order to complete the work. The formation of KeySoft Group was complete in 2017 and now we all collaborate under this brand.

Pavel Kulko

LR: What are KeySoft Group products?

Pavel: KeySoft Group proprietary software includes a suite of products that support MetaTrader 4 and MetaTrader 5 multi-asset platforms for trading Forex, exchange instruments and futures. The products support advanced financial trading functions and offer superior tools for technical and fundamental analysis.

METAfx Multi Account Manager (МАМ) for MetaTrader 4 and MetaTrader 5 is a system designed to provide the professional trader the essential integrated software tools to quickly and conveniently allocate and manage funds under master account arrangement in live trading conditions with minimum risks.

METAfx MAM4 and MAM5 represent KeySoft’s implementation of the well-known MAM solution for the money managers and allows to manage multiple accounts utilizing Expert Advisors (EAs). MAM broadens the functionality of the MetaTrader platforms by enabling the money manager to effectively trade and manage multiple accounts from a single MT interface. All processing is centralized and server based, which allows the fastest and most reliable integration. Hundreds of accounts can be traded with one click and virtually no delay in allocations.

METAfx MAM client application is a centralized control interface for assets managers, which allows instant change of allocation parameters, provides control of all the managed accounts from a single interface, real time equity and P&L monitoring of the managed accounts, real time control of open positions of all the managed accounts, “Group Order” execution, historical reports and commission calculation.

METAfx MAM administrator application is a tool for back office control, which provides control of all the accounts from a single Interface, has all the functionality of the MAM client application, allows to add/remove master and sub-accounts, manage trades and accounts, calculate and withdraw commissions.

METAfx MAM Web API provides platform-independent access to the MAM and is a full-featured web application with all the functionality of the MAM client and administrator applications.

METAfx MAM server plugin allows deep integration with the MetaTrader server, provides instant execution of trades with guaranteed execution prices due to “post-trade” allocation method, full compatibility with the STP Bridges/Gateways and dealing desk execution, broker control and server updates.

METAfx MT4-to-MT4 bridge is used to establish connection between two or more MetaTrader 4 Servers and redirect trade requests from one server to another. The MT4-to-MT4 bridge consists of two server plugins. The TradeServer plugin is installed on the MT4 Server of the liquidity provider and is used to accept incoming connections from the client brokers. The TradeCoverage plugin is installed on the server of the client broker and connects to the liquidity provider.

The MT4-to-MT4 bridge is capable of connecting two or more MetaTrader 4 Servers and redirect trade requests from one server to another. The TradeCoverage plugin allows redirecting trade requests from the individual client accounts and execute them on the coverage accounts of the MetaTrader 4 Server of the counterparty broker. It also allows connections from many MetaTrader 4 servers. The trades are confirmed remotely, no local dealing desk is required.

METAfx Smart Hedger is a plug-in for automatically managing risk in MT4 server. It saves time and cost of manual dealer control of the broker’s overall position, and maximizes his profit using smart cover logic. Smart Hedger is designed for hedging ‘toxic’ clients. Hedging is carried out by the targeted opening of the offsetting broker positions on the Liquidity Provider side, which offset the loss caused by the client positions.

Smart Hedger continually monitors the overall broker position and the market conditions. Smart Hedger instructs MetaTrader Server to open Cover positions in the Liquidity Provider account (hedges) based on two requirements:

  • risk reduction part – advanced mathematical modeling is used to accurately forecast possible losses of the broker due to client positions (this quantity is referred to as Value at Risk, or VaR). If overall VaR of the position exceeds custom-set limit, Smart Hedger makes smart Cover trades to reduce the risk.
  • cut-loss part – Smart Hedger monitors instantaneous mark-to-market PnL of the overall broker position in each currency. In the unlikely case that currency PnL is negative Smart Hedger finds the optimal currency pair to produce a Cover trade.

LR: What makes KeySoft Group products different from competitors?

Pavel: Our METAfx MAM was the first product for the Asset Managers which was designed for MT4. Being a server plugin allows it to be deeply integrated with the server workflows and ensures the fastest and most reliable execution of trades. It is the most feature-rich platform with the most number of different allocation methods on the market, which makes it the most appreciated MAM plugin on the market.

There are 14 allocation methods which cover the most sophisticated requirements of the asset managers. Also, there is the MAM Client application which is given to the asset manager and allows him to change allocation parameters, track opened positions, request reports etc.

There is the MAM Administrator application which allows you to control all the master and sub-accounts and create client licenses. The MAM software doesn’t have limitations on the number of the managed accounts or the servers under the same license which make it cost-effective solution at scale.

LR: What are the advantages of KeySoft METAfx MAM?

Pavel: KeySoft METAfx MAM has many advantages, including the posibility to change Allocation method for each trade, along with closing the suborders individually in both LAMM (Lot allocation Method in Vol) and PAMM (…in %of P&L).

The software has a responsive user interface, diverse commission calculation methods, sophisticated closed trade reports for all the subaccounts, as well as a diverse range of different allocation methods (14), LAMM, PAMM and Trade Copier style allocation methods.

KeySoft METAfx MAM is fully compatible with STP bridges.

LR: What are the advantages of KeySoft METAfx SMART HEDGER?

Pavel: The Smart Hedger allows you to internalize smartly non-risky client trades on the B book with the help of AI to limit your LP hedging costs. It uses internalization of the client trades to significantly reduce the flow with LP.

Customized risk-limits can be set to accurately control the amount of internalization and to reflect broker risk preferences, customer trade flow details and changing market volatility conditions.

The Smart Hedger allows a mixture of STP trading with 100% A-book hedging, as well as smart risk hedging with partial customer flow internalization and reduction of the trade flow to LP.

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