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Wealth Engine

Wealth Engine. Forex Workshop. ATS Forex / Man Financial.

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Wealth Engine

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  1. Wealth Engine Forex Workshop

  2. ATS Forex / Man Financial • We offer Broker Assisted, Self-Directed Accounts, but our specialty is Systematic Trading.   Systems trading typically provides an enhancement to an investment portfolio of traditional, more conservative products, usually having a low rate of return. However, studies commissioned by the Chicago Board of Trade and Chicago Mercantile Exchange clearly underscore the advantage of having a well-diversified portfolio that includes a percentage of more leveraged products such as futures contracts and options. The trade off in assuming the proportionately higher risks is the potential of greater rewards. Systems automate trading in the futures markets in the hope of benefiting from potential price trends. The nature of a trading system is to remove all emotion from trade selection and defer all decision making to the system being followed. • The diverse systems offered by Fox Investments include position-trading and day trading programs that have unique algorithms that capitalize on projected market movement. Ideally, we like to mix the robust systems with more conservative ones in an effort to garner high returns with the lowest possible draw down. We work with account sizes ranging from $5000 individual accounts to Multi-Million Dollar portfolios. Our group of  four  system trading specialists has  each 20 years plus experience in the futures markets each; therefore our clients are assured of dealing with seasoned professional that are sensitive to their needs and understand what it takes to be successful in the futures markets. Fox Investments is located at the Chicago Board of Trade, long considered the heart of modern futures trading.

  3. The Basics (What is an Algorithm?) • algorithm - A step-by-step problem-solving procedure, especially an established, recursive computational procedure for solving a problem in a finite number of steps.  A set of ordered steps for solving a problem, such as a mathematical formula or the instructions in a program. The terms algorithm and logic are synonymous. Both refer to a sequence of steps to solve a problem. However, an algorithm implies an expression that solves a complex problem rather than the overall input-process-output logic of typical business programs.

  4. The Development of the System • The Wealth Engine Forex system was developed as a result of a need to systematize the trading of a basket of currency pairs. The signals are generated on the www.advancedtechnicals.com website.

  5. Selection of Markets • Wealth Engine Forex trades 17 major currency pairs. Pairs were selected because of their back tested results and liquidity. • On this diagram, the green lines indicate the pair is performing positively in the portfolio at this particular moment. The red indicates the opposite. • In this diagram, we have open positions totaling a profit of $51,757. The total portfolio balance to date is $366,673.

  6. Diversification of currency pairs • The objective of diversification is simply put, “don’t put all your eggs in one basket.” • This chart indicates the portfolio starting balance, the percentage of leverage applied, and the resulting quantities of each currency pair. • Each pair is designed to have an equal weight in the portfolio. For example, the EURUSD position would be worth the same as the USDCAD position.

  7. Lowering Leverage • In this example, we decreased portfolio leverage from 50% to 25%. The result, is half the risk and therefore, half the positions. This can be adjusted for the client needs. It would be lower for more conservative, and higher for more risk tolerant.

  8. Trade Example • This is an example of a Wealth Engine USDJPY sell signal. On 12/6/2005 the system went short at 12033. As soon as the trade is executed a stop loss and a profit target are set. Wealth Engine scales out of trades at 3 different levels. Once the 1st level is hit, stops go to break even. In this example, our first target was filled at 11855, followed by another at 11674, and 11494.

  9. Performance • This particular portfolio started June 1st, 2005 with $200,000. Portfolio value is currently sitting at $314,900.

  10. Percentage Returns

  11. Mini Forex • The large portfolio can be duplicated using Base 10, or mini size contracts that are 1/10th the size of a normal $100,000 contract. The performance is very similar, but does slightly underperforms because a $5 transaction fee.

  12. Pros and Cons of Systematic Trading • Systematic trading has been derived from traders associating trade patterns in the marketplace to look for reoccurrences in price movements in relationship to time, volatility and volume changes. These components have been automated to create signals, stops and targets.

  13. Systematic trading: applying the techniques of “Hedge Funds” • For years the Hedge Fund Industry had applied strategies with flexibility in the markets. This flexibility led to a more diverse selection of products and smoother equity curve.

  14. Why Wealth Engine Forex? • Wealth Engine Forex was created for institutional investors, but has now evolved through money management techniques into a retail product offering the same flexibility in products and portfolio diversification. This product is an enhancement to round-out the typical portfolio with goals in long-term growth.

  15. Summary • Investing in currencies incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investors' account value. Leverage is used with strict money management methodology and stop-loss orders are always in place. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional "buy and hold" investments.The performance of a currency portfolio has historically been non-correlated with that of traditional equity and fixed income investments. Unlike equity and fixed income managers, a currency hedge fund manager employs both long and short positions in its currency portfolio to profit under any market conditions.  Wealth Engine provides  both individual and institutional investors with customized managed account investment solutions. These solutions expose our investors to top Managed Account and Alternative Investment talent, capacity and performance. • We invite you to call or email us for a personalized live presentation.

  16. How to get started? • http://www.fxdd.com/Individual_Account_Application.pdf • More information: info@foxonline.net • Phone: 888-369-0670 • Phone: 312-528-3037 • Fax: 312-528-3169

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