 | | | | | | | | | |
|
|
| | |
 |
Our primary investment strategy is based upon changes in market liquidity and the absence of any material economic or financial event. By measuring market sentiment of a currency and key support and resistance levels when liquidity is significantly increased, we seek to ride underlying trends as liquidity pushes new valuations. When the underlying trend of a security is clear, there are no material events on the horizon, and we have established a support or resistance zone through confluence of Value Area, Fibonacci Clusters & Pivot Points, we will seek to enter the market via a reversal or through trade.
Our secondary strategy is premised on the notion that our investments in the the foreign exchange and futures markets are very short term (i.e. typically in and out within 6 hours), offer highly attractive returns, but also a high level of risk. As we build capital, we also need diversify that capital and invest for income. Non-directional index option trading provides us with an opportuntiy to obtain gains of 3% - 5% per month with lower risk, with trade longevity of 10 - 40 days.
Our tertiary investment strategy is based upon economic and financial events releases - there are literally hundreds of economic and financial events occurring each day from all over the world. We identify and concentrate on a small number of those events that are likely to have a material impact on the markets and currency valuations.
| Event |
USD |
GBP |
CAD |
EUR |
NZD |
AUD |
CHF |
JPY |
| GDP |
X |
X |
X |
|
X |
X |
|
|
| CPI |
X |
X |
X |
|
X |
X |
|
|
| Interest Rate |
X |
X |
X |
X* |
X |
X |
X |
|
| PMI/ ISM Manufacturing |
X |
|
X* |
|
|
|
|
|
| PMI/ ISM Non-Manufacturing |
X |
X |
X* |
|
|
|
|
|
| Housing (New & Existing) Sales |
X |
|
|
|
|
|
|
|
| Trade Balance |
|
|
|
|
|
|
|
|
| Retail Sales |
X |
X |
X |
|
X |
X |
|
|
| Central Bank Statement |
X |
X |
X |
X* |
X |
X |
X |
|
| PPI |
X |
|
|
|
|
|
|
|
| Employment/ NFP |
X |
|
X |
|
|
X |
|
|
* refer for specific guidance on country page
The consensus of market followers is best described by surveys done by organisations such as Bloomberg and Reuters, whom survey a small number of esteemed economists, and ask them what their expectation of an event will be. Once a consensus view is established for the event of interest, it is important to know what level of deviation (i.e. the difference between the actual release number and the consensus number) will likely cause the valuation of the market to shift. When events occur, sometimes a revision will occur of a previous release, usually the month before. It can impact the market if the revision is large, so can magnify the impact of the current release, neutralise it, or outweight it. Our secondary investment approach in a nutshell is that every major planned economic or financial event has a consensus expectation determined by economists ... if the actual release figure is different from the consensus by a minimum deviation, the market is surprised and will react to the release sometimes immediately, but in many cases over a period of time (15 mins to 2 hours). Based on historical data, we can predict that a particular deviation will trigger a minimum amount of valuation shift. We do not form an opinion before the event - we will wait for the event to come out, and then take a position.
Always remember that trading derivatives on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade derivatives you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with derivatives trading, and seek advice from an independent financial advisor if you have any doubts.
|
|
| | | | | | | | |
|
|  |
