||Technical & Fundamental
||14th Dec 2016
Learn more about RETTANGOLO by FN
1. Strategy: Mainly CONSERVATIVE CARRY trading. This is NOT an EA, but a manually traded strategy by a City veteran. There will be NO style drift, which means: this strategy is a carry strategy and we do not deviate from this by mixing it with trend strategies or momentum strategies or news strategies etc.
2. Leverage: very low leverage (exposure on average between 2-3X balance size). On exceptional occasions, exposure can be 20-30x balance size, this happens very rarely. SEE ALSO point 5. below for optimal copying.
3. Trade duration: between several days and weeks.
4. Drawdown: currently historic drawdown of 11.95% (myfxbook.com calculations). We would leave room for a DD of up to 20%, but only if the carry element plays out in our favor in the medium term.
5. Copying: IMPORTANT We treat this 3.0K GBP master account as a full amount (not a margin amount !!!). That means, we donot over-leverage. Therefore, you can easily increase the risk and the leverage to your own level and preferences.
For example: Monthly return is 2% on this master account with a historic max strategy drawdown of 11%. THEREFORE, you can increase the account's lot size and leverage at your level, to say 3X, in which case the anticipated monthly return will be 6% with a maximum strategy drawdown of 33%. Be reminded however, that we leave room to reach 20% drawdown on the master account when this is justified by the carry element of the strategy.
6. Trading frequency: low. This is NOT a scalping or day-trading strategy and it avoids over-trading and over-leveraging. Only 5-10 trading tickets per week (or a multiple of de-leveraged tickets to scale into a position ). It is possible no trading takes place for several days, until an ideal carry situation/opportunity presents itself. This is not a get rich fast strategy, but a very performant fund strategy which gives decent returns p.a.
7. Capacity: very high. This strategy is the opposite of a scalping strategy and therefore, it is not vulnerable to wider spreads. Unlike most retail-strategies, this strategy can handle large amounts of balance and followers without distorting the results. The strategy can therefore comfortably be traded with 2x risk of the master account, obviously adjusting the maximum drawdown limit above.
8. Broker choice and Rollover swaps: preferably chose a broker who pays fair rollover swaps. The strategy can still be traded if less favorable rollover swaps are paid out, since we mainly play on the market reactions of carry trades and not so much on the rollover payout itself.
9. Professionalism: This is a conservative strategy traded and managed manually by a accomplished market veteran. Only emergency protective stops far away of current market to avoid broker stop runs.
10. Minimum account size: USD 1,000, but then risk is 4X the risk of the master account (see above, point 2 and 5), but monthly returns in percentage terms will also be 4X higher. For large accounts > $100,000, please contact us, as there is a signal maximum lot size set.
Last but not least:
1. the usual DISCLAIMERS apply. Leveraged FX trading is very risky. Only trade with money that you can afford to lose. Past performance is no guarantee for future results. In FX, anything can happen and you should bear this in mind at all times.
2. For large accounts > 100,000, please contact us.
UPDATE FEB. 2019. A second account will be openend to trade the same strategy with a much higher risk profile and full use of leverage.