Capricorn fxST (Lev1) Strategy

Capricorn fxST (Lev1) aims to profit from short term moves in the currency markets. To achieve this, the firm employs a technical and discretion trading approach to currency investment management; an approach that seeks short term intra-week investment opportunities.

The product seeks to achieve superior returns by engaging in “pair trading the most liquid currencies” which involves taking a directional position in a particular currency while simultaneously taking the opposite position in another currency, in an attempt to take advantage of relative valuation differences between the two.


The Investment Process

Our investment strategy is categorized as being short term, technical and discretionary; the success of this methodology comes from a high degree of discipline and years of currency trading experience.

Idea Generation Process:

  1. Analyse daily movements of FX majors
  2. Evaluate developments in equity markets
  3. Build technical picture of market patterns
  4. Consider potential investment cases
  5. Interpret fundamental macro factors
  6. Form a short term view on market

The investment process is designed to channel the best trading ideas in the model portfolio which is then generated into a trading signal. Utilizing technical analysis and discretionary judgment, the investment team searches for investment opportunities, wherever they occur in the G-10 currency markets and seeks to deliver superior returns. Our robust internal controls ensure that the defined parameters for risk that the investment team are willing to absorb, is actively managed under the duration of the trade.

Capricorn fxST Idea Generation

Each trading signal details the strategy entry and exit levels along with the stoploss and take profit targets, and are executed under client instructions. All signals are monitored by the investment team should the target or stoploss of the strategy be revised due to a shift in its risk/rewards profile. Clients and their brokerage execution relationships are immediately notified of these modification to adjust the portfolio accordingly.


Sound Judgement and Risk Controls

We believe it’s key to understand how markets are functioning using our sound judgement before generating strategies that based on technical analysis and signals. Thus, the discretionary assessment of a technical view is an important part of our trading process; it is where we have an edge and bring value.

At this stage of the investment process, the investment team is ready to proceed with a discretionary assessment from the idea generation process and to evaluate the macro and external view inputs.

Discretionary Approach

For further information on the investment process of the Capricorn fxST (Lev1) strategy, please contact us at info@ctastrats.com to request the full product presentation.

 

Capricorn fxST (Lev1) Strategy

Updated on 2017-02-20T16:08:29+00:00, by admin.