Risk Management & Trading

Normal Trading Performance:

Under regular market conditions, our trading operations operate autonomously, with automated execution of trades (both purchases and sales) constituting 99% of all activity. Our trading team is on hand 24 hours a day 5 days a week to oversee all market sessions and to monitor the market activity and open trades.

Diversification:

Embracing the importance of diversification, we distribute our trading capital across various currency pairs and CFD instruments through our 10 proprietary strategies. This strategic allocation mitigates the impact of adverse movements in any single asset and bolsters the resilience of our portfolio. By harnessing a spectrum of strategies, each uniquely engineered to capitalize on specific market nuances and opportunities, we are able to navigate ever-evolving market conditions with resilience and adaptability. The amalgamation of 10 strategies dispersers risk and enhances the probability for consistent profitability.

Performance Review and Adaptation:

Monthly assessments of each strategy's performance, alongside comprehensive analysis of performance data, constitute a cornerstone of our operational diligence. Recognizing the fluidity of market dynamics, we attach paramount importance to the ongoing optimization and alignment of our algorithmic strategies with prevailing market conditions.

Drawdown Mitigation and Strategy Recovery:

A key facet of our risk management protocol is the mitigation of drawdown risks. In instances where a strategy’s drawdown exceeds 35%, a comprehensive response protocol is initiated, encompassing several strategic steps:

• • Pausing the strategy experiencing excessive drawdown to prevent the opening of new positions.
  • Activation of an autonomous “Recovery Strategy,” designed to achieve three pivotal objectives:
    1. Curtailing further drawdown: The Recovery Strategy neutralizes the net open positions contributing to the excessive drawdown by initiating hedging trades with commensurate exposure.
    2. Drawdown reduction: This strategic approach proactively opens new positions while closing older positions responsible for the elevated drawdown. Gradual reduction of drawdown is a core objective, exemplified by a potential decline from 35% to 30% over five trading days.
    3. Profit realization: While primarily focused on drawdown mitigation, the Recovery Strategy simultaneously capitalizes on profit-generation by partially closing existing positions and initiating new trades.

• Once the drawdown is ameliorated to 20% or below, the temporarily paused strategy is reinstated. Simultaneously, the Recovery Strategy continues to navigate the drawdown of previous positions.

Volatility Monitoring and News Filters:

During periods of heightened volatility such as world events or significant announcements, we exercise heightened vigilance over market behaviour and exposure. While direct intervention is rare, algorithms are augmented with a "News Filter." This mechanism can autonomously disable trading for a stipulated duration under select scenarios, thereby enhancing our responsiveness to fluctuating market dynamics.