Our View of the Global Markets
Our View of the Global Markets
We view the markets with a global perspective. We believe that we live in an economically, politically and financially interactive world. As a result, markets at different parts of the world interact with each other in generating both trend and volatility trading signals. Market trends are driven mainly by economic and political policies which tend to have longer term effects on the markets and are both predictable based on fundamental research and detectable through monitoring market movements. Market volatility is mainly driven by participants' risk positions which tend to be a short term phenomenon and may be difficult to predict each time.
Our unique advantage is our information exchange and cooperation with Chinese fund management professionals who have close ties with Chinese think tanks and policy makers. We are on top of any potential Chinese macro economic and monetary policy shifts through such information exchange and cooperation.
Risk of loss using managed futures/option investments can be substantial. You should carefully consider whether they are suitable for your composite financial strategy. Past performance is no guarantee of future results Futures trading involves the use of leverage which can generate large gains as well as large losses.
Our Trading Strategy
We have two trading strategies which are run independently but developed jointly by our team. One is discretionary trading strategy. The other is program trading strategy.
Discretionary Trading
Although this strategy uses many fundamental and technical indicators, the trades are entirely discretionary. This trading strategy is focused on identifying both market trend movements and market volatility movements and then making opportunistic investment decisions when we see a predictable trading pattern.
We follow major policy, economic and liquidity news all over the world to identify global market trends. We study technical charts and apply statistical tools in analyzing trading data to both verify our global markets trend views and identify risk positions in the markets. Through the application of both market trend views and market volatility views to our daily entry and exit positions, we strive to attain much higher risk-adjusted returns for the trading capital we manage.
To minimize portfolio risk, we keep overnight risk positions to a minimum. Most of the trades are conducted during the active trading hours for each market.
The typical leverage for our Fund is 2 times.
Program Trading
Our program trading strategy is based on market observations from the viewpoints of technical analysis, market sentiment/breath, as well as correlations among various global markets. The strategy is back tested on over a decade of intraday data and is used to guide our investment process under bull, bear, or trend less market conditions The strategy is developed by combining several sub strategies such as trend following strategy, countertrend strategy, event/calendar pattern strategy, and cross-market correlation strategy to achieve optimization between risk and return. This strategy is still currently under development.
Risk Management
To minimize portfolio risk, both of our strategies will keep overnight risk positions to a minimum. Most of the trades are conducted during the active trading hours for each market. To reduce downside risk we employ a 3% stop loss rule for each position size. The placement of such contingent orders, however, may not always limit losses to the intended amounts since occasionally market conditions may make it impossible to execute such orders. We only trade liquid instruments enabling us to exit nearly all our positions on any active trading day. However, under certain conditions, such as when the market makes a "limit move" it may be difficult or impossible to liquidate a position. Leverage is capped at 2x maximum gross exposure. We occasionally use options on futures to control or manage risk.
Trading Instruments
We trade global equity index futures, and to a lesser degree, bond futures, commodity futures and currency futures. Our global equity index futures trades are focused mainly in the US, Canada, Europe, Hong Kong, Japan, Australia, Korea and Taiwan.
Contact US
Paul Lee, Founder and Chief Operating Officer, Tuck MBA
Address: New York, USA
Tel: (USA) +1 718 986 8124
Email: paul.lee@optoglobalmacro.com
Koston Feng, Founder and Principal Trader, Tuck MBA
Address:Flushing, New York
Tel: (USA) +1 718 886 8768
Email: koston.feng@gmail.com
© Opto Global Macro LLC, 2009. NY
