Innovations Company: Automated portfolio management
Parameters "automatically hedging":
Individual approach to every investor can establish independent monitoring of accounts, selection of individual tools (used in commerce), insurance, individual selection of contractors (prime brokers), the repayment schedule. This system gives the performance an investor of investment independent of other investors and hedge funds in general. This is - additional insurance against the risks of scalability and availability of all the same all the benefits of the strategy.
Investment capital is divided into 2 parts: trade and stabilization. Stabilization Fund (amounting to 20-30% of total capital) is designed to meet the challenges necessary to prevent resetting the account in case of approaching critical levels Equity to the level of stop-outs. Practice shows that the level of Equity does not fall below 20-30% relative to the size of the Balance Sheet. However, such insurance bills provide for future periods of trade risk-free combination of technical and strategic account management tools.
Stabilization Fund is the general strategic reserve investments and connects to the solution of commercial risks of individual accounts of all investors.
Investment in one currency is translated in equal installments of 10 or more currencies, which makes hedging falling base rates.
Automated system of internal transfers of funds between the accounts of the investment pool gives extra stability ratio Equity / Balance and does not allow to incur losses in the event of a fall in the equity of individual accounts.
The distribution of investment fund (within the same account) on a variety of tools (over 100 currencies, metals and contracts for difference), ie Volatility trading using multiple tools allows interdependent management tools in one account (one hedge instrument by others).
Each account is distinct from other accounts (earlier and later switched to the active stage of the trade) a set of tools. That is, it is different for each of the accounts.
Trading on the part of the allocated number of accounts equal to the trading period (1.5-2 months). The gradual introduction of capital in the trade risks associated with trading and substantiated not repeatable market fluctuations. In the case of formation of the negative vibrations of tools, their impact will occur on a limited number of accounts, rather than all at once.
Due to the fact that you are using the distribution of investments by the number of days of trading period, the question is not only the gradual introduction of fund investment in trade, but also the phasing out of trade, ie secure profits. Thus, the graph has a smooth removal of profit rising curve.
Trading period and is associated with preservation of profit, ie at the end of active trading ASH system switches to a passive trade, and after 20-30 days, will close all orders, providing no subsidence approximation to the Equity Balance.
After the closure of all orders are removed from the account of the necessary funds, as well as part of the funds goes to the Stabilization Fund, located on unused accounts to trade.
The automatic system provides an opportunity to profit from both the low volatility of currencies and the volatility of longer periods (weeks to months). This system gives an advantage over other systems is that the availability of profitable trades is about 90%.
The presence of an automatic exchange system and calculate the change profitable base rates makes it possible to obtain additional revenue in the amount of 2-3% per month on investment.
Stabilization Fund in addition to the direct purpose of using it as a stabilization in some accounts, the reallocation of resources between accounts is used to profit from arbitrage situations in the market for immediate delivery through the exchange of Reuters SPOT / FWDS Matching attached to «ASH-Arbitrage." Since the instantaneous exchange transactions, then the need for the base currency of the trading accounts can be implemented immediately, without any loss.
Trading strategy, implemented in the automatic schemes ASH, makes a profit regardless of the direction of the tool, which is implemented by means of multidirectional trade, which would enable the simultaneous closure of unprofitable trades through profitable.
The system can carry out transactions and monitor thousands of accounts. Staff shall be the controlling function and is not directly involved in trading operations, while the system performs a few thousand trades per month for each of the accounts.
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Global company "Automatic systems hedging"