FX FX MANAGERS


JW How do you manage risk in the


company?


ES We absolutely believe in the


effectiveness of stop losses and our position sizing reflects a pre-set maximum risk as a percent of NAV.


JW Do you use a blend of strategies


or one only one?


ES Spectrum employs two


strategies. The Multi-Strategy (Trend Following) Program which was established nearly seven years ago and the Mean Reverting (Counter Trend) Strategy begun in CY 2006. The Mean Reverting Strategy came about largely as a result of a request by one of


Spectrum’s customers so as to give clients a choice between two strategies.


JW What are the market conditions


that you consider ideal, and which ones are the most challenging, for the performance of your strategy?


ES Less volatile markets rather than highly volatile markets.


JW Can you give us an example of a memorable winning trading decision?


ES Spectrum’s trading style does not necessarily believe in looking for home runs, but rather small and consistent returns while maintaining small drawdowns.


JW


When developing a strategy, do you give a higher priority to building entry signals, exit signals or money management rules?


ES


Risk Management has the highest priority.


JW Do you think that every strategy loses its accuracy sooner or later, or do you believe in long lasting market rules? Have you ever found a strategy that became profitable again after a long negative phase?


42 FX TRADER MAGAZINE October - December 2011


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