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About Excel Capital Management - Forex Management Account
Summary:
The Excel Forex program is a volatility measured break-out and momentum FX trading strategy that is 85% systematic and 15% discretionary. The discretion that is taken in this program is either to opt out of trades or modify/eliminate them based on fundamental factors. Occasionally the trader will take trades off before significant announcements based on the volatility at its approach. Six main currency pairs are traded including EUR/USD, USD/CHF, USD/JPY, GBP/USD, AUD/USD, and EUR/JPY, however the program mainly trades USD/JPY and GBP/USD. The program averages two trades per day and average trade length is less than two days. Most of the trading is done at the beginning of the UK trading session when liquidity is highest. Something that differentiates this program from other momentum FX traders is that position size can vary eight or nine times while the trade is on depending on volatility. Static stops are placed on every single trade but the stop-loss range varies between each trade depending on volatility levels. For example, if the previous day’s volatility is 500 points than the stop will be placed that far out but if it was only 100 points then the same principal applies. The client can pre-define capital protection levels, however the trader recommends 30% risk because that has been the program’s maximum draw-down. The program does not accept ANY notional funding and is firm on that order. The program itself uses between 30% and 45% leverage depending on the clearing firm. Each trade risks no more than 2.5% but that translates to 5% and 7.5% when there are two or three trades in the account on at one time. Minimum account size is currently $10,000 and AUM are currently $2.6MM of client funds spread over 60 accounts. The trader also trades $2.2MM with the same strategy in a proprietary account. Fee structure is 0X25% monthly and shares 20% of the incentive fee with the IB. High Water Marks are used and trades are carried into the next month if applicable. The head trader is Shaun Madden and there is a trader under him to carry on the program if he is incapacitated. The program currently clears and executes at Dukascopy and FXCM and is preparing to also execute and clear with PFG. All accounts clear where they are executed. There are no give-ups. The program trades at $100 per million and there are about 700 round trades per million per year. The $100 cost he is currently paying is quite high and we are working with him to obtain better pricing…
From DDoc:
General Discussion. Futures/FOREX traders basically rely on either of two types of analysis for their trading decisions, “technical” or “fundamental”. Technical analysis uses the theory that a study of the markets themselves will provide a means of anticipating price changes. Technical analysis generally include a study of actual daily, weekly and lower time frame price fluctuations, volume variations and changes in open interest, utilisation of charts and possibly computers for analysis. On the other hand, Fundamental analysis relies on a study and evaluation of external forces which affect the price of traded instruments, such as supply and demand, changes in money supply, weather, exchange control programs, national and international political and economic events, and changes in interest rate differentials and yields.
The advisors Excel FX program is a systematic entry approach based solely on the advisors propriety systems. The system incorporates different strategies which fully complement each other. The strategies are mainly intraday and short term in nature.
We firmly believe that price reflects the fundamentals that we are not already aware of, however in some cases a “surprise” may occur in which case we would assess how this would affect our current positions and make changes accordingly.
System 1: Intraday Trend, Reversals & Volatility Breakouts:
Our first system comprises three distinct strategies, all designed to work in synergy with one another.
a) Intraday Trend – We look to take advantage of intraday trends, and trade only in the direction of the prevailing trend.
b) Reversals – We look to take advantage of reversals, usually after spikes caused by news etc. These trades do not come as often as the others, but they are very high probability and offer the best risk reward ratio.
c) Volatility Breakouts – We look to trade break-outs, but in a very different way to most traders. We look for certain conditions to be met before trading. We must see both volatility and momentum to initiate a position.
Instruments Traded: EURUSD, USDCHF, USDJPY, GBPUSD, AUDUSD, EURJPY
For more information or to request a disclosure document please contact your representative at Managed Capital Advisory Group, Ltd. This report does not take into account the investment objectives, financial situation, or particular needs of any particular person. Investing in securities and other financial products entails certain risks, including the possible loss of the entire principal amount invested. Certain investments in particular, including those involving structured products, futures, options, and other derivatives, are complex, may entail substantial risk, and are not suitable for all investors. The price and value of, and income produced by, securities and other financial products may fluctuate and may be adversely impacted by exchange rates, interest rates, or other factors. Prior to effecting any transaction in options or options-related products, investors should read and understand the current Options Clearing Corporation Disclosure Document, a copy of which may be obtained on request from your Managed Capital Advisory Group, Ltd. representative. Certain securities may not be registered with, or subject to the reporting requirements of, the US Securities and Exchange Commission or any comparable regulatory authority. Information available on such securities may be limited. Investors should obtain advice from their own tax, financial, legal, and other advisors and only make investment decisions on the basis of the investor’s own objectives, experience, and resources.
