FX MANAGERS
MH The market is changing all the time and your strategy needs to adapt to those changes. That doesn’t mean any fundamental change in your investment process but it does mean you may have to tweak some of those inputs. For example, we found moving our time horizon for our technical inputs after our flat year in 2009 to a shorter term paid dividends and contributed to our +10% return in 2010. We are still using the shorter term technical inputs.
FXTM Do you use any form of optimization? If so, how do you make sure it doesn’t create curve fitting and confirms robustness of the model?
MH No, we don’t use any form of optimization.
FXTM Do you favor any particular time frame in your strategies? What is
your average trade duration and trading frequency?
MH Our strategy is short term as our trade tenure averages 3-4 days. We only trade on medium and high conviction trades and disregard any trade idea that rates as a low conviction trade, therefore we usually have only 10-15 core
FX
to trade to, and then decide which is the most suitable time frame.
FXTM What is the average leverage that you normally use? And the maximum leverage?
MH We typically use no leverage. We feel we can usually achieve our desired r isk/r et u r n profile without the
need for leverage.
FXTM How many e x e c u t i o n brokers do you use? How do you split e x e c u t i o n b e t w e e n electronic and voice?
trades per month.
FXTM What should an inexperienced trader watch when choosing a time frame?
MH Risk management, not necessarily time frame, is the real key. I would suggest to establish the risk parameters and profile you want
MH We have 5 executing broker relationships. We
only use
person to person execution as we find the information flow we receive from talking to our brokers is invaluable. Also, we would only want an executing broker, and not a machine, watching a stop loss order we place.
FX TRADER MAGAZINE October - December 2013 55
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