Dighton World Wide Investments AG

SFT conservative program

The Swiss Futures Trading Program is a successful combination of systematic, technical chart analysis for the US Markets, the interpretation and analysis of economic and other fundamental data and use of discretion by experienced traders. The trader trades most of the liquid US future markets like stock indices (especially Mini S+P) bonds and notes, energy, corn, grains and other commodities like cotton. The trader analyses thoroughly the charts of these markets every week and monitors them then during the week. Chart analysis techniques include (but are not limited to) wave analysis (Elliot Wave), W.D. Gann principles (angles), Fibonacci retracements, Time cycles, Volume, Trix Indicator, divergences, pattern analysis .... In general the trader tries to locate points where to buy in markets that have fallen and where to sell in markets that have risen. By this the trader is trying to buy when prices are low and to sell when prices are high. This approach is trend anticipating but not really counter trend. When a position is established the trader lets the profits run and exits when the market gets to a point where a reversal in the trend could be expected. As the trader is mainly discretionary he determines in which market he wants to establish a position. The fact, that the trader is monitoring many different markets does not mean that he is always invested in different market and through that would be diversified. It is possible, that the trader will invest only in one market where he sees the highest reward potential. Often the trader will establish positions at different times and price levels in one single market. The trader in general is looking at extreme points where he thinks the market will turn. As these extreme points are only reached in about 30 percent, the trader establishes a part of the position at an earlier moment. If the market reaches the extreme point the trader will establish then the full position, so it is actually good for the trader if the market goes first against the smaller position, so that he can get fully invested. Although the trader is mostly discretionary he has a systematic component in it. He has a set of rules which he applies, but they are not implemented like a model and could be overruled if they i.e. do not make sense in a particular situation. But in general this set of rules rejects 19 out of 20 possible trades, this also explains why often the trader is only invested in one or two markets. The approach is about 75 percent technical and 25 percent fundamental. The program is about 20 percent systematic and 80 percent discretionary. That the program is mostly discretionary is also seen in the high negative correlation to CTA indices. Because of this negative correlation the program would be an excellent diversification to any CTA portfolio, but with a sharpe ratio of bigger then 2 it is also a great standalone investment.