Collective2

The system is technical in merit while trading decisions are made using two primary tools: 1) Price action (the level of the pair price along with its volatility and movement) and 2) Quantitative Trading Models (mathematical analysis to identify trading opportunities in unison with algorithmic money management models). These two combined allow for very attractive portfolio returns while reducing overall risk to invested capital. The overall trading approach is associated with Short-Term "Swing" trading in combination with Trend-Following. Open trades can last from 30 minutes to a few days as currencies are both bought-long and sold-short. The average total number of trades per week can vary between 1-3. Once a trade limit-order has been triggered, a TP- (Take Profit) and SL- (Stop-Loss) price is set. At various price-levels between the entry-price and the TP, per-defined percentages of the overall trade exposure are closed so as to lock-in profits. The SL-level can fluctuate at particular times of day but will never be more than a defined "maximum" amount. Currently, the main system is focused on the currency pair GBP/USD (British Pound vs. U.S. Dollar). As this is one of the top four "major" pairs traded with regards to daily transactional turnover, it provides for extremely high liquidity along with low transactional spreads (costs) which make it more attractive to trade. The pair also has a long trade history which has shown very consistent backtesting results with historical price-action characteristics.