FX MANAGERS while it’s great to have strong
convictions, being biased towards a particular move could be your strength but also your weakness!
FXTM Do you use a blend of strategies or one only?
GO We are definitely a blend of strategies in terms of utilizing what works best for us at any given time. Today it might be technical analysis, and tomorrow fundamentals may play a larger role in what happens in the markets. We can say the same about quantitative analysis as well as using market intelligence. Everything
can be used to our
benefit, if, when we are looking to take, the situation and strategy allow. We definitely try to leverage everything that is available to us when it comes to research.
FXTM What are the market conditions that you consider ideal, and which ones are the most challenging, for the performance of your strategy?
GO The way we approach our trading is by remaining adaptable and agnostic in any particular market environment. Going through past experience, May 2012 was for us
the most challenging month. It was a pure trending market. We were mainly trading it the way we had been during the previous 12 – 18 months. That is, we took advantage of a relatively predictable range. So when the USD became bid, for example, we kept on expecting a reversion. By doing so, we got caught on the wrong side of the market a few times. We have since put in place parameters that enable us to adjust, and more importantly help us identify certain trends. The relative inability to spot emerging trends was our main weakness back in May 2012.
FXTM Can you give us an example of a memorable winning trading decision?
GO EURCHF
on September 6th
2011 definitely has to be one, only because we were on the right side of the market when the SNB announced the 1.20 floor rate for the EURCHF! We were long at 1.08, tried to get out around 1.15ish, but didn’t get a fill until about 1.19…It has been one of the few times a trader could get something like this in his favor when trading electronically. This was the first and last call about a trade I got in the middle of the
FX
night from Richard Campbell in our UK office!
The other memorable trade was the long USDJPY position we entered on September 13 & 15 of 2012 for an average long of 77.61. Our initial targets were 82, 84 and 88, which were all met. We finally got out with an average of about 100 USDJPY. This was a collective effort, with Amit Patel working under my guidance. That trade was something we had been focusing on for some time. Looking ahead at the BOJ elections and other macro elements, we had identified a great risk/reward ratio that supported the idea of taking the trade.
FXTM Do you use Emerging Markets currencies? And do you think individual traders should use them, considering they don’t have to worry so much about liquidity issues?
GO We trade them if and when an opportunity presents
itself. We
need to feel comfortable with the risk involved, and of course the upside potential of the reward must make sense given the potential for a loss. I think trading EMFX is better suited for longer term traders who can walk
FX TRADER MAGAZINE January - March 2014 65
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