Saturday, 17 October 2009

What clients do you prefer?

I prefer clients who have some knowledge of markets, who knows that the decline in trade is inevitable, and who will not suddenly panic. The client must be patient and able to assess market risks.

Who are your customers? What are your goals? What services do you offer your customers? Your customers, for example, tend to diversify when you entrust your money?

Currently, I am wealthy private investors, however, my trading history is connected with institutional investors and when there is a good opportunity, they transfer me to new investors. The client requires some diversification, which seemed to them a variety of markets and trading strategies.

You are trading money for its customers: what risks they take? When they take their money?

My clients are ready to take the risk of 12-15%, however, with losses of 20%, they collect their money.

What should you make a profit for its customers to earn their admiration?

Customer covers euphoria with profits of more than 35%, and always difficult to achieve such results in the following year with the same risk parameters.

What is your fee? How much is deducted in a month or a year from the customer's account? And how high must be a profit to the client still remains happy despite these payments?

There are currently paid for the work of 25%, but there is no fee for the administration. Since there is only paid for the work, the money paid only from profits. This is effective on a monthly basis. Profit should be in the region of 27-30%, so that the client had income 20%. As long as these profits are achieved, the client is willing to pay a fee.

How high your trading opportunities? How do you achieve this? What do you do once it is achieved? Whether it is your trade?

Trading opportunities are approximately 100 million Euro. In the event of further increases in capital, the existing fund will be closed and will open a new fund. What's the worst that can happen in your relationships with customers, and what you do to avoid this?

The worst - it damages more than 20% of which were fatal, and to avoid this, I keep risks at a very low level.

What do you do in the event of a large income or capital, on the contrary, his retirement?

Deposits of up to 100 million dollars does not represent any problem. Large seizures do not pose a threat to the trading system, simply reduced trading volume.

Which markets do you sell? They are susceptible to specialization? Sell only on the liquidity, or also to the low liquidity of markets?

The portfolio consists of currency and stocks, which are regularly traded. There is no specialization in one market. Each of these markets are very liquid, the requirement for risk management is carried out, because you can work with very close stop-orders. At low liquid markets may be problems with the precise execution of orders.

As regarding the entrance into the market and how is it important?

Entrance to the market is only a small part of overall strategy. If I concentrate all their energies only on the point of entry, I have already lost. Much more important - this is a professional money management and risk, as well as overall management of commercial business. Entry point is almost insignificant.

What are the initial levels of stop-orders are you using? If they work, you quickly re-enter the market in order to use the slightest market movement?

Typically, no more than 1% of capital at the level of risk for foreign exchange transactions. Since the shares are slightly higher - 1.5%. If my stop-order and worked, this means that a change in trend has not yet happened and so I look forward to a new signal input. I re-enter the market, only if you receive a different signal, which indicated a change of trend.

How do you plan to profit zone - different levels for the stop orders, and its goal of profit? Contrary to the normal view, to whether you need to put more emphasis on the method of entry and stop orders?

I do not limit their profits if the market moves in my direction, I quickly increase its position to profit from such traffic. Naturally, there are always concerns about how far the market will move. Despite this, I do not limit their profits. My stop-order and placed in line with the graphic techniques and, depending on market volatility. When my stop-order and worked, trade is completed.

What are you doing for the management of money?

As I said, in the currency markets, I risk a maximum of 1% of the commercial capital, and with the shares - 1.5%. Stop orders are not permanently mounted on 1% of the commercial capital. It is very important. Stop orders are calculated according to the graphical techniques used in combination with the volatility of the market. When I know the value, I calculate the amount of the position according to the maximum risk.

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