Peak FX Fund (luxembourg regulated)
1. Peak FX Fund Overview
Richard partnered with Peak Partners to deliver a new FX Fund which was specifically aimed at Closed Ended Risk. The fund is short term focused with a mandate in G10 currencies.
The Concept behind the fund was to provide HIgh Performance whilst controlling the risk exposure. For example, the unleveraged version provides a closed ended Risk to 1% whilst targeting a performance of 2% per month. This means that the fund will not lose more than 1% in a calendar month. The concept is to provide true visibilty to risk whilst endeavouring to deliver high performance.
The fund has a strict mandate to risk and trading which is implemented rigidly at all times.
The fund operates on a short term time horizon and holds at least 70% of its assets in AAA rated sovereign debt which has short term maturity. Then ultilises the leverage provided by the FX market to achieve the leverages as laid out in the prospectus.
We have sought to deliver a variety of Risk classes within the structure to accomodate investors risk appetite. These come in three classes of 1x1 Low Risk, offering no leverage against the invested capital, Medium Risk, 3x1, offering three times the leverage of the capital invested and high risk, upto 10x1 leverage of the capital.
Different investors have different risk profiling and we have sought to achieve a reasonable spread within the structures for their needs. However regardless of the class, the downside risk is clearly stated on the product. Capital presevation especially in these turbulent times is key to our belief.
2.
Risk Aversion
This is a key element to our product. In search of transparency to risk we have set strict mandates to the fund structures. Every order entered must be placed with a stop loss and a take profit order. Risk may not be increased during the trading process only decreased. This is key to our mandate and differentiates us from the competition.
We are happy to work within the strict mandates as we utlilse a unique system to trading decisions which is accurate to both time and pricing.
It is important to understand that all our trades must comply with a three to one trading mandate. This is where the profit must always be three times greater than the capital risked. Using this process even winning just one trade in four the fund will not produce a negative performance. On a 50% win rate the profitablity will still achieve target. Our success rate is better than 70% of trades hence we are confident on performance.
3. Gann, Harmonics and intonation
we use a system that has taken 27 years to develop. Its foundations were made in the W.D.Gann systems and refined to include a musicality which captures the human element of the markets.
This system is not limited in its structures to purely FX but works in all asset classes. After all without understanding what is happening in all asset classes how can one understand one.
The caputuring of the Human element was critical in the success of the system. A discovery of the link between music and markets being key within this process.
Markets are structured on hope and fear, it is the position of capturing this hope and free which is critical to the system. Hope and Fear in markets is approximately 90/10 in its division and in music Happy songs over sad songs has about the same split. Therefore, it became a logic step to deduce that there must be a correlation.
Key within in this was the use of the circle of 5ths on which all music is based. All muscal structures can only move in a certain way or they just don't work. It is the same in markets.
The final part was the understanding of how harmonics play an essential role in major to minor changes (happpy to sad) in music and discover this within the markets. When this was discovered it showed major changes to the direction of markets and how they move to trend change or continuation.
This system is predictive to market pricing and time scales on which it works.
One of the most important is the longer term is far more powerful than the short term. Withour understanding this you can never can long term success.
4. 321 trading for success!
All trading is worked on a 321 formula. we risk one unit with the view to win three times the risk. This establishes risk management within trading even on winning only one trade in three, we still not lose. Most traders trade better than 50/50 and we surpass this ratio, thus we look for consistent growing bottom line.
It is important in all trading to realise that there are three trades buy, sell and do nothing. We believe that unless the 321 formula is not met then it is better to do nothing. This is key to successful trading.
5. Managed Accounts
We do offer managed accounts also rather than the fund structure. Some customers prefer to have control on their accounts and money and we accomodate these customers also.
Managed accounts are all traded on the same structures as the Fund using the same systems and risk management. Also we follow the same principals of risk assessment for customers, selecting low, medium or high risk. It is important that customers chose the risk that most suits their own needs and investment goals.
We do also offer the clients the choice of whether they wish to have very tight risk control or whether they are happy to extend the downside risk. The choices are theirs and we follow the mandate as rigoriously as the Fund structure.