UFX’s short term strategy is a discretionary strategy based on pattern recognition, Elliott wave theory and Fibonacci numbers. The strategy can play the major currencies and all the euro crosses. The duration of each trade is from 1 day to max 15 days, depending on the market move. The strategy always uses stops, and the stop-loss is normally moved if the trade becomes profitable. Normally the strategy is unleveraged, but sometimes if the first trade is in profit (that signifies that the stop is not in loss, but in profit), the managers can add a second trade on the swing. And also another, until maximum three trades, with the same rule.
UFX QUESTION AND ANSWER
1) How would you describe your approach and trading method to a novice trader, so that he knows what you are speaking of, i.e. where to fit it in the universe of forex trading? Please give at least a paragraph describing the overall approach and method.
- The method is discretionary, based on patterns' recognition. I use elliott wave theory, fibonacci numbers and breakouts. Some statistics indicators are used, but only for the timing. The trading is based on 60 minutes bar charts.
2) What pairs are traded? How often do the setups you look for tend to occur? Do the setups you look for occur in trending markets only, or in all market conditions? What does your strategy do during sideways market conditions?
- I trade the majors, eur usd, gbp usd, usd chf, usd yen, aud usd, usd cad, gbp yen, gbp chf and sometimes eur yen, eur chf, eur aud. Every day is good for trading, but sometimes there are no pattern to trade. Obviously i trade better in the trend, handling the position for some days, making more than 1 trade if necessary, adding others positions at different levels, but only if the first one is in gain. In a sideways, i do less trades, intraday or for few days.
3) Is the system trading in proximity to economic news announcements, when "fast market" conditions often prevail?
- I’m not too much interest in economic figures for forecasting and trading.
4) Are stop losses used -- and are they "hard" (order placed with broker while position is open) or "soft" (held in mind by the trader)? Describe in general how risk is managed -- what is your philosophy/approach to money and risk management, and capital preservation?
- I use always hard stop losses. I move the stop loss only for reducing risk during the trading. I don t risk more than 1% for each trade.
5) How long have you been managing accounts for others? How long trading forex? How long since started trading of any kind? What is the approximate total amount of funds under management at the current time?
- Union forex spa is a company authorized and controlled by bank of
6) For larger clients, would you be willing to offer a reduction in performance fee? Example -- for single accounts of $500k, a performance fee of 20% (for you), for $1M, 15% (for you)? If you would offer a reduction, what would be the account sizes necessary for reduced performance fee if different from those suggested?
- I can agree with this kind of reductions. Normally i sell with 1% man fee and 10% incentive fees, but for good size account i can accept what you offer below.
7) At what level would you be willing to offer a maximum drawdown stop-trade -- whereby if a client's account Equity falls below a certain percentage of original deposited Equity, say 30% or 39%, that you will cease trading in that account, and notify client to ask whether they wish trading to continue -- and only resume trading if the client says ok?
- Normally the stop is at 8% drowdown on the trading line. If it happens, i notifie it to the customer, and i resume trading only if the customer will.
8) Are clients free to make withdrawals at any time? If no, please describe limitations.
Also, can we get trade records for the last month -- through July 18? The ones we have end on June 18 -- and clients will ask.
- Yes, the customer can make withdrawals at any time. He must only kindly let me know by e mail.
