Winning in Todays Hottest Marketplace_7

The FOREX Marketplace 173 Table 13.1 A 10 ´ 10 DP/V ME Matrix 1 2 3 4 5 6 7 8 9 10 1 1 1 1 1 1 1 1 1 1 1 2 3 4 5 6 7 8 9 10 2 2 2 2 2 2 2 2 2 2 1 2 3 4 5 6 7 8 9 10 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 1 2 3 4 5 6 7 8 9 10 5 5 5 5 5 5 5 5 5 5 1 2 3 4 5 6 7 8 9 10 6 6 6 6 6 6 6 6 6 6 1 2 3 4 5 6 7 8 9 10 7 7 7 7 7 7 7 7 7 7 1 2 3 4 5 6 7 8 9 10 8 8 8 8 8 8 8 8 8 8 1 2 3 4 5 6 7 8 9 10 9 9 9 9 9 9 9 9 9 9 1 2 3 4 5 6 7 8 9 10 10 10 10 10 10 10 10 10 10 10 or bad—that occurs in a mostly contiguous area of the matrix (clusters) can tell you much about the manager’s trading methods. A short track record with a broad ME sample may be better than a long track record with hot and cold ME clusters. See Chapter 18, “Improving Your Trading Skills,” for more on ME applications to trading. Peter Panholzer One of the most respected names in the managed FOREX business is Peter Panholzer. Already in 1979 Peter Panholzer ran what is today believed to be the first-ever systematically managed currency program offered to the general public at large, the Magnum Program at ContiCommodity, with over 300 accounts, indeed a very early example of currency alpha as a separate independent asset class. (See Figure 13.10.) 174 FIGURE 13.10 THE TOOLS OF THE TRADE DynexCorp Source: DynexCorp, Ltd, www.dynexcorp.com Mr. Panholzer, Partner of DynexCorp, offers our readers a brief summary of the latest managed money trend, Investable FX Indices. FXSelect utilizes a pool of managers and rotates them in and out of action based on proprietary performance algorithms: After 30 years of toiling to achieve episodic profits in currency trading, my whole outlook on life (and stress) has changed since I am involved in what I deem the best—and unmatched—risk-adjusted returns currently available in the FX field. DynexCorp was invited by Deutsche Bank London AG, alongside with Mercer Consulting and Parker Global Strategies, to be index archi-tects for Deutsche Bank’s FXSelect platform. Highlights: · Index developed and managed by DynexCorp, by invitation of Deutsche Bank · Investable Custom FX Index designed and managed by DynexCorp using the pioneering Deutsche Bank FXSelect Platform · This index is superior to any single FX manager performance, and also superior to simple equally weighted allocation – the index dynamically represents the best 5 to 15 of 70 currency alpha managers at any point in time The FOREX Marketplace 175 · High Sharpe Ratio, Low Volatility · Daily Liquidity · Stop-Loss monitored and guaranteed by Deutsche Bank Why investable FX index? Single currency manager performances are notoriously EPISODIC. The message to investors is: Don’t hire single currency managers. This is our FXSelect edge: 1. Our quantitative and qualitative selection algorithm: As veteran FX manager we are familiar with many traders and their styles; our quantitative model very quickly determines “exclusions.” 2. We use only “real” daily data achieved on the FXSelect platform: Historic data supplied “on a reported basis” are not as reliable as the “real” daily data achieved on the FXSelect platform. 3. We can switch managers on any day and at no cost: When investing in conventional multi-manager currency funds, consider that the manager selection process is costly and the manager selection length is quite inflexible. —Peter Panholzer A number of companies track individual and fund FOREX account per-formance. · www.parkerglobal.com · www.managedfutures.com · www.mainfo.org Advisory Services Almost every magazine and newsletter today is either online or available online. Gone forever are the glory days of the hardcopy Harry Schultz Letter, Dines Letter, Holt Advisory, and Myer’s Energy and Finance. FOREX Market letters and signal services are reviewed on www .forexpeacearmy.com WDFX www.wdfx.co.uk Trust me on this. I do not normally recommend Signal services. But Mark at WDFX Forex is good. He’s a longer term trader in a world of scalpers. They also offer a Trading Room forum and an Expert Advisor. 176 THE TOOLS OF THE TRADE An excellent supplement to your own trading tools. Of course, past per-formance is never a guarantee of future results, but WDFX has some solid FX benchmarks indicating some long-term staying power. Currency Bulletin www.currencybulletin.com An interesting FOREX newsletter/advi-sory with a long track record in FOREX. The author uses this serv-ice as a check on his own long-term chart analysis. GoodmanWorks www.goodmanworks.comThe author publishes the GoodmanWorks Blog 6–8 times each week. It focuses on the Goodman trading methods—Goodman Wave Theory and Market Environments, offering instruction as well as trading ideas. The web site also updates this book, answers readers questions, and digs deeper on topics in this book with the Getting Started Blog. EuroTrader www.eurusdtrader.com Jimmy Young’s advisory service has attracted a loyal following. One focus is trading vis-à-vis the fre-quent news releases in the FOREX arena. If you plan to be a self-directed trader, consider using two advi-sory services: one of them to complement your own analysis and one of them “out-of-the-box” to give you a fresh perspective. I use two services to confirm my own work but rarely follow the trade recommendations unless they also match up with my own thinking. Online Reference Guides www.investopedia.com Superior reference on technical analysis, charting, and other aspects of trading. New articles are published almost daily. Material is geared to the new and inexperienced trader and leading-edge ideas are discouraged. Spread and Binary Betting Spread Betting It has been said that retail FOREX market makers are essen-tially bookmakers. You might wish to consider spread or binary betting on cur-rencies. Be sure to check the legality where you reside. Most of these offer binary options on currencies in a variety of flavors. www.deltaindex.com One of the oldest spread betting web sites. The FOREX Marketplace 177 www.fxbt.com This web site offers binary options in a number of markets, including FOREX. You take a yes or no side to a financial question such as “Will the EUR/USD go over 1.3700?” Or you can speculate on the likelihood of a hurricane. Government-regulated and open only to U.S. citizens. www.nadax.com Trade the political, financial, and weather events that make up at least part of the fundamental picture for currencies. www.igindex.co.uk Offers a dealing platform and charts. Periodicals—In Print and Online www.forexjournal.com Forex Journal is the sister publication to Trader’s Journal. Editor Dickson Yap does an excellent job with both. Unlike many editors in this space he is not afraid of new ideas. Content is varied and stimulating. See Figure 13.11. www.currencytradermag.com Excellent content although it tends to mainstream ideas for the most part. www.e-FOREX.net By subscription, pricey but excellent if you are serious about the inner workings of the FOREX industry. FIGURE 13.11 Forex Journal ... - tailieumienphi.vn