Trading Strategy and Money Management Principals
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Thursday, October 1, 2009
Trading Advisor utilizes technical analysis of the Forex markets as the primary determinant of its trading strategy. Technical analysis operates on the theory that market prices at any given point in time reflect all known factors affecting supply and demand for a particular market. Technical analysis is of particular concern in the timing of entry and exit positions, in ascertaining the development of trends, and in evaluating the extent to which the market price reflects the underlying value.
The inherent structure of most investment (mutual) funds is reliant on a directional market (on the long side only) – whereas the Advisor is indifferent to market direction (long or short). The focus is on precision of market entry/timing signals and favorable risk/reward algorithms.
The overall trading program is not only diversified by its use of multiple systems, but also by markets and timeframes. These layers of diversification are intended to expand the range of opportunities, reduce overall program risk, and provide a high degree of non-correlation between the returns of the GMF Managed Account program and global stock and bond markets.
The focus is on risk reduction, capital preservation, anticipation of significant technical levels, efficient trade entry and exit points, and continual evaluation and adjustment of portfolio exposure.
Attempt to eliminate large losses and show profit day in and day out through ANY market condition.
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