Hello all, I would like to briefly introduce you to my trading system I have been using for some time. It's different than what most systems consist of and after looking around in the forums on this site I couldn't find something similar.
So, to start with, I use fundamentals and economic forecasts as the "why" I go in a particular trade. Technical aspects are more of a "when" to enter after having the fundamentals in place. To be more accurate with how I operate, first I make a research on a given currency, not pair but just a single currency. The research is usually done at the end of each quarter for the next one. In addition, at the end of each year, I create a more general outlook for the next year. Those things form my bias about each currency. Than I pick strong/weak currencies and combine them taking into consideration factors like swap, average monthly trading range, etc. As you probably understood the system is not a short term one but let's say weekly to monthly with targets of about 200-300 pips. If things start going south, positions are hedged with correlated instruments (commodities, options, etc.), no stop losses what so ever. The system is low-risk one, some of you may seem the volumes I trade as laughable compared to the account size but this gives me the opportunity to diversify my trades and give them space to breath, not hedge them when they have a 50 pips DD. The system gives an annual return of about 30%, which I consider a good result since it is a low risk system, max DD so far is 2,3%, and that's from running balance not closed. So far net from hedged positions no losses but some positions may take more than a month to close which may not be appealing to some.
If anyone is interested in understanding more about the system, please contact me, preferably someone with knowledge about instruments correlated to FX. This way we can be of use to each other. To be more precise it would be a lot of help to me if someone works on fundamentals and correlations with me because there are to many things to take into consideration and I cannot do that completely on my own, so the potential of the strategy is not used to its fullest.
So, to start with, I use fundamentals and economic forecasts as the "why" I go in a particular trade. Technical aspects are more of a "when" to enter after having the fundamentals in place. To be more accurate with how I operate, first I make a research on a given currency, not pair but just a single currency. The research is usually done at the end of each quarter for the next one. In addition, at the end of each year, I create a more general outlook for the next year. Those things form my bias about each currency. Than I pick strong/weak currencies and combine them taking into consideration factors like swap, average monthly trading range, etc. As you probably understood the system is not a short term one but let's say weekly to monthly with targets of about 200-300 pips. If things start going south, positions are hedged with correlated instruments (commodities, options, etc.), no stop losses what so ever. The system is low-risk one, some of you may seem the volumes I trade as laughable compared to the account size but this gives me the opportunity to diversify my trades and give them space to breath, not hedge them when they have a 50 pips DD. The system gives an annual return of about 30%, which I consider a good result since it is a low risk system, max DD so far is 2,3%, and that's from running balance not closed. So far net from hedged positions no losses but some positions may take more than a month to close which may not be appealing to some.
If anyone is interested in understanding more about the system, please contact me, preferably someone with knowledge about instruments correlated to FX. This way we can be of use to each other. To be more precise it would be a lot of help to me if someone works on fundamentals and correlations with me because there are to many things to take into consideration and I cannot do that completely on my own, so the potential of the strategy is not used to its fullest.