E-Forex_UK_April

TRADERTALK
built an in-house position keeping system which issues Business Development:
‘red ﬂag’ alerts if one of the risk parameters is broken. Our mission in life is performance. Symate is geared to
Every single trade is limited with a volatility adjusted deliver the best risk adjusted returns. What all investors
hard stop-loss and trailing stops are moved along to want is capital protection and to maximize returns. In
protect gains.The sum of our net open positions does our view, hedge funds are able to satisfy the demands of
not exceed 3x the portfolio’s total equity and we are capital preservation because they can actively manage
avoiding excess concentration risk. the downside risk compared to long-only funds. What
happened in 2008 made investors very nervous about
Do you think some currency managers tend to markets in general, but they are deﬁnitely starting to
ignore operational risks and how do you go about re-invest. For 2010, we believe the industry will recover
mitigating these? and will be starting to gain market share as investors
realize the value it provides. Our strategy returnedWe are trying to outsource all non-core related
14.19% net of fees in 2009 at an annualized volatilitybusiness activities which allows us to focus on our
of 8.06%. Of course many long-only funds have donetrading competences. A ‘red-ﬂag’ report has been
better than hedge funds last year, but investors recognizeput in place linked to
that hedge funds willopen positions and
have much less volatilityensuring correct proﬁt/loss
in the long run. In thisattribution. We have an an
context, we will try toindependent and accredited
match our investors’fund administrator who
needs and offer themis reconciling our trade
efﬁcient solutions toactivities on a daily basis
gain exposure to the FXand also calculates the
market – either via aNAV of the fund on a
direct investment intoweekly basis. On the other
the Symate G-7 L/Shand, we have a solid
currency fund or viacustodian where approx.
Managed Accounts.70% of the assets is held in
cash. Contrary to long-
only investment strategies, those based on trend-Steps are being taken in various parts of the world
following programs are currently facing a toughto signiﬁcantly increase the regulation of the capital
market environment. Especially due to the highmarkets, which may also include OTC derivatives.
intraday volatility which is challenging for theIn what ways might increased regulatory oversight
trade management of a position. During the endeffect the currency management landscape and
of the year 2009, developing trends got repeatedlyyour own activities?
interrupted by short-term corrections.This is theRegulation is the important issue of 2010. One key
reason why our fund ﬁnds itself currently in a draw-thing to realize is that regulation will be by EU-
down phase. Nevertheless, we are convinced thatwide rules and will be done by EU regulators.The
systematic, non-discretionary investment and riskproposed Alternative Investment Fund Managers
management processes will lead to out-performance(AIMF) Directive will impact the hedge fund industry.
over discretionary investment styles in the long run.However, at this stage the effect of this on our business
is still vague. Especially as the proposed directive is built Trading Systems Development:
on the proposal to regulate the hedge fund managers We are currently working on a new trend-following
rather than the funds. We are, of course, following the model and another trading approach where we eliminate
developments on the regulatory front very closely. the time scale from trading.The concept of the trend-
follower is to trade off the daily charts and capture theLooking to the future how do you plan to expand
main trends of an underlying currency basket duringyour business and the value it offers to investors?
the year.The system will be fully automated and will
also consist of Emerging Market currencies.The secondWell, if talking about the future of Symate we should
project we’re working on is to eliminate time fromprobably differ between Business Development and
trading. We’re trying to focus on pure price action.newTrading Systems Development.
|168 april 2010 e -FOREX
Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 | Page 36 | Page 37 | Page 38 | Page 39 | Page 40 | Page 41 | Page 42 | Page 43 | Page 44 | Page 45 | Page 46 | Page 47 | Page 48 | Page 49 | Page 50 | Page 51 | Page 52 | Page 53 | Page 54 | Page 55 | Page 56 | Page 57 | Page 58 | Page 59 | Page 60 | Page 61 | Page 62 | Page 63 | Page 64 | Page 65 | Page 66 | Page 67 | Page 68 | Page 69 | Page 70 | Page 71 | Page 72 | Page 73 | Page 74 | Page 75 | Page 76 | Page 77 | Page 78 | Page 79 | Page 80 | Page 81 | Page 82 | Page 83 | Page 84 | Page 85 | Page 86 | Page 87 | Page 88 | Page 89 | Page 90 | Page 91 | Page 92 | Page 93 | Page 94 | Page 95 | Page 96 | Page 97 | Page 98 | Page 99 | Page 100 | Page 101 | Page 102 | Page 103 | Page 104 | Page 105 | Page 106 | Page 107 | Page 108 | Page 109 | Page 110 | Page 111 | Page 112 | Page 113 | Page 114 | Page 115 | Page 116 | Page 117 | Page 118 | Page 119 | Page 120 | Page 121 | Page 122 | Page 123 | Page 124 | Page 125 | Page 126 | Page 127 | Page 128 | Page 129 | Page 130 | Page 131 | Page 132 | Page 133 | Page 134 | Page 135 | Page 136 | Page 137 | Page 138 | Page 139 | Page 140 | Page 141 | Page 142 | Page 143 | Page 144 | Page 145 | Page 146 | Page 147 | Page 148 | Page 149 | Page 150 | Page 151 | Page 152 | Page 153 | Page 154 | Page 155 | Page 156 | Page 157 | Page 158 | Page 159 | Page 160 | Page 161 | Page 162 | Page 163 | Page 164 | Page 165 | Page 166 | Page 167 | Page 168 | Page 169 | Page 170 | Page 171 | Page 172