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Managed Account

  • CTA Name : Wallwood Consultants, Ltd.
  • Program Name : Managed Account
  • Start Date : 2001-01-01
  • Trading Strategy
  • Systematic : 100%
  • Discretionary : 0%
  • Fundamental : -
  • Technical : Yes
  • Diversified Market Strategy : -
  • Sector Specific Strategy : Yes
  • Trade Duration
  • Long-Term : -
  • Mid-Term : Yes
  • Short-Term : Yes
  • Multi-Term : Yes
  • Markets Traded
  • Stock Index : -
  • Interest Rates : -
  • Currencies : Yes
  • Metals : -
  • Energy : -
  • Grains : -
  • Meats : -
  • Softs : -

Wallwood Consultants, Ltd.

Managed Account


Wallwood managed accounts are traded using their own swing trading system that was in development for three years it is a medium term trend-following system that does have in place a set of shorter term trading rules. Its profit goal is to establish a position as a persistent market move begins and stay with the move until it is exhausted and reverses direction. However, such persistent moves are not always present in the market, and many trend following systems fall victim to market congestion or choppiness while waiting for a trend to develop. If the system does not detect a price trend, a "neutral" trading signal will be generated. While this neutral signal is designed to filter out high-risk "whipsaw" markets when markets are range-bound within narrow bands, as there are fewer opportunities, however when any breaks occur, the trading system has orders in place to take advantage determining that a market trend could have been formed on a break. The system's overall objective is to return profits over time; its energy rules and focus are almost exclusively toward the management of risk from trade to trade. At onset of any position maximum loss is always defined. The system's starting point is to take a trade in the current market direction as the market rises, the system goes long. As the market falls, the system reverses and goes short. Ideally, the market will continue to go in the same direction for many days, in which case the system will profit from most of that trend. However, the system not only recognises that the ideal case isn't common, but it goes even further and makes an initial assumption on every trade that it has made a mistake about the market's direction. When an entry point is determined, the system also determines a loss/reversal point usually between 30 and 70 points depending on product and market volatility. If the market hits that point, the system will reverse and try again to the other side. If the market doesn't hit that loss point but also doesn't display profitable behaviour, then it becomes a waiting game and patience persists awaiting the next market trend. If the market moves a certain distance in the right direction, the system moves the stop to break- even and then to a small profitable level, the system looks to achieve "a free trade scenario" as often as markets allow, thus reducing risk on the trade (and also positioning the system to get an earlier and better reversal price if the market resumes its congestive behaviour). If the trade becomes sufficiently profitable, the system declares a trend to be in effect and it relaxes the reversal point to allow the market more room to correct. At some point, the market will reverse direction (or correct too strongly), and the system will reverse, returning to its original pessimistic state of tightly controlling its stop-and-reverse point. This type of trading system seeks to close out losing positions quickly and to hold portions of profitable positions for as long as the trading system determines that the particular market trend continues to offer reasonable profit potential. The number of losing transactions may exceed the number of profitable transactions. However, with Wallwoods approach, these losses should be more than offset by gains. The currency pairs traded on the forex program are USD/YEN and EURO/USD as these are the most liquid and cover the three global trading areas; at times by being long EUR/USD and long USD/YEN we have a synthetic EURO/YEN cross position. Each account uses conservative gearing of 6:1 or 15% margins, therefore an account of $100 000 would have positions of $600 000 assigned. This is split $300 000 USD/YEN and 300 000 EUR/USD. Larger gearing can be used by mutual agreement. Positions are monitored 24 hours a day to maximize on any potential market moves. When an account is first opened and traded a smaller gearing of 4:1 may be employed by Wallwood at its discretion.

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