FX MANAGERS
24 hour nature inherent in trading currencies.
JW When was the company born?
ES Spectrum Asset Management, LLC was formed in 2002.
JW How is the company structured
today in terms of headcounts and offices?
ES Te company has
two offices. Te main office is at the Chicago Board of Trade and has six employees located in that office. Tere is another office located in Georgia which houses two others, including myself.
JW Which authorities regulate the company?
ES We are regulated by the CFTC and
NFA.
JW You are in charge of the currency
program. How do you describe your investment strategy?
ES Spectrum has two types of currency
decide to change it?
ES To answer this question requires
that I briefly discuss what lessons I have learned throughout my 45 years of trading experience in both commodity
futures and foreign
exchange. Through trial and error and the experiences that are gained as a result of trial and error, I came to the conclusion several years ago that a successful trader should be
programs. One of them is a Multi- Strategy
trend following system
and the second is a Mean Reverting system. I will concentrate on the Mean Reverting system since it is the vlarger strategy from the AUM point of view.
JW How did you create and develop
your current FX management strategy? Has it changed over time, and if yes, for what reasons did you
FX
very conscious of which “window” he chooses to trade. What I mean by this is that every trader should decide what constitutes a short term and long term window for his style of trading as well as the assets he has under management. It has been my experience that in the course of a given year, there are relatively small opportunities
for for strong
moves commensurate with limited losses
such moves. Way
upside too
often many trading managers see far too many of these opportunities
suffer the resulting losses in assets
and that
come from being wrong. Consensus is the name of the trading
strategy
that underlies both
Spectrum
currency programs. As developed, it requires that several market indicators agree with each other before a position is initiated
and maintained. If those market indicators fail to agree with each other after a position is initiated, the position will be closed. This type of strategy helps to produce low drawdowns, particularly during periods of high volatility. Spectrum’s Multi-Strategy Program is also governed by the same principals as that of the Mean Reverting system. One of the drawbacks of this system is that the strategy may miss moves because of its conservative nature.
FX TRADER MAGAZINE October - December 2011 41
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