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Find out here how Equitimax makes high yield returns on customer accounts
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How does the technology work?
The Equitimax technology has been developed to manage, control and place the trades automatically, across the different portfolios, from the multiple trading systems Equitimax have developed and run live on customer and their own accounts.
This simple diagram below displays how the different trading systems are run independently and then filtered through the asset allocation system that determines the size or risk on that trade based on the total exposure across all systems and trades.
The Equitimax asset allocation system or model then distributes or ‘allocates’ the trades onto the Red and Blue portfolios. The allocation is made based on the maximum risk per trade for that portfolio and is part of an analysis process of the systems recent performance versus its longer term performance, current and perceived risk and any changes in the risk weighting, the current market exposure and the spread across negatively correlated currency pairs.
The Equitimax asset allocation system manages and controls the targeted return on the portfolios, based on the system output and the current performance and is applied differently on each portfolio based on the risk model for that particular portfolio.
This is an allocation algorithm in itself and is totally unique to Equitimax, and it improves the overall returns across the three portfolios.
The Blue portfolio takes the similar trades with a small portion of the account balance at risk on each trade.
The Red portfolio takes similar trades with a slightly larger portion of the account balance committed as the maximum risk on each trade and this means that a winning trade on the Red portfolio will create more profit
The Gold portfolio is modelled to grow as quickly as possible, whilst not risking more than the 20% capital protection quota Equitimax have set on each of the portfolios. The Gold portfolio is new and
has just been introduced based on a lot of analysis and computer modelling this looks like something that will grow exceptionally quickly when the market is condusive.
The individual selection process from the trading system output (the chosen trades), including when each trade is applied, the size of the trade, and how many additional trades can be added to the portfolio are all complex equations that promote profit whilst limiting exposure for the portfolio.
Not every trade makes it onto the trading account, as the technology used and the algorithms applied may deem that the three or four trades generated by a system is too many on the portfolio at one time, so adjustments are made so that only the first two are placed. This limits the exposure to any one trade or currency pair over a series of trades. This is what makes the Equitimax managed trading service so unique and predictable.
The ATM Red trades mostly the same trades as the blue although the risk on each of those trades is greater. By taking a greater risk across a basket of trades the Red portfolio will hold a larger series of winning trades or a larger series or losing trades during the course of its trading. As its risk is now set at 1% per trade and the Blue portfolio is set around 0.7% per trade the difference in the results of both portfolios becomes apparent over time.
The targeted returns for the ATM Blue portfolio is around 20 to 30% per year, and the targeted returns on the ATM Red portfolio is around 30 to 50%. Equitimax believe these targets are achievable and at times when the trading systems are performing at their peak the results may be much better over short periods.
Currently after six months of 2013 the ATM Blue portfolio is in profit by 20.4% and the ATM Red portfolio is in profit by 32.25%, both are on target for the high end of the profit projections.
The trade desk pages of the website displays every trade and the equity curves for each of the portfolios, so you can follow the different performance and view every trade and these pages are updated at the end of every month. The more recent trading results can be requested during the month to fill in the recent past between posting the results at months end.
The live trades are updated dynamically and any interim report will contain the trades from the first of the current calendar month, through to the exact time the trading report was requested from Equitimax and even includes the live trades that are still open.
The Equitimax strategies are created from algorithms, alarms and signals and we are always trialling and testing new approaches to provide a transparent and automatic trading service that delivers. This delivers a 100% automated process from the customers perspective and by applying the trading systems directly on your own trading account, while the funds stay in your name, in a AA rated UK bank.
There is no initial establishment fee and no monthly subscription fees, there are no contracts and you can increase or decrease your funds in the account anytime. The way that Equitimax get paid is
by sharing in the profit we have created on your account. We have skin in the game too, we protect the capital in the accounts to a minimum of 80% of the capital value, so you can sleep at night and every downturn has quickly been recouped by our trading systems. Equitimax let you keep 67% of the pure profit and we take 33%, so when we win you win and if we do not create profit we do not get paid.
We use a performance system that relates to the high watermark on your account too, which means we only take a percentage of new profits made on your account. If your account goes backwards this month then you pay no fees next month until we have caught up the losses and made new profits. You are only paying fees on actual profit on your account.
That seems very fair. This method also encourages us to be careful with your funds while trying to generate the best returns with the least amount of risk because 33% of the future profit is ours so we are going to make sure it is steady and consistent.
It is suggested that you start with a small amount of funds in your account and as your results confirm how well the account is going, you can then increase the funds in the account which provides you with peace of mind.
We have recently launched a 2% risk model called the GOLD portfolio which although it has only been running for one month is already up over 40%. The gold portfolio is a measured application of careful risk to reward, were the targeted returns are now set to over 100% to 120% per year. This account will suffer larger drawdowns than the Red and Blue portfolios but as the systems are delivering consistent returns across both the other portfolios, now Equitimax feel it is the time to increase the volume and really see what a trading system can do.
The Gold portfolio is set up for people who only want exceptional returns on their trading account.