Sticking to what works with currencies >>>


a repetitive, uncorrelated and positive series of risk- adjusted returns. We want to harvest alpha from market noise – or in other words track the “animal spirits” and capture them! We recognise that markets “range trade” rather than trend for the majority of the time. So we created two groups of trading models. One set of models are centred around mean reversion, selling the highs and buying the lows of the recent trading range. Te other group of models becomes active when markets are short-term trending and those models trade in the direction of that trend. One of the problems of currency investing is that prices tend to breakout and then trend and then stop and range trade for long periods before breaking out and trending again. Some managers do well in trending markets others do well in range trading markets, rarely do managers do well in both types of markets.


We have developed a process that seeks to ensure that we do well in both environments. Our key strength is that we are very experienced investors who have lived through almost every type of market condition. We don’t try and think up great theories and then relentlessly test and optimise them until they fit the real world. We take the real world, and what we have seen work in the real world, and we systematise that.


What style of trading do you undertake to execute strategies and do you have any particular preference for specific trading time horizons, such as intra-day or medium to long term?


We use a comprehensive range of filters in order to screen out most sub-optimal trades. We prefer to be out of the market rather than to be active in trades which we believe may have a lower probability of success and we don’t mind sitting in cash waiting for attractive opportunities. We use multi factor models that generally involve the following groups of market studies: pattern recognition, statistical distribution, fractal analysis, momentum oscillators, directional filters, technical analysis and proprietary studies.


Our trading horizons currently vary from about five minutes to eight hours. We can hold positions overnight, but because we thrive on volatility if markets become becalmed we usually exit. Tere are


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