The World’s #1 Managed Forex Program
The World’s #1 Managed Forex Program
Providing retail clients access to private institutional trading strategies.
We’ve taken great strides to leveling the investment playing field.
The Dragon FX managed account embodies the belief that both discretionary and systematic trading strategies can successfully profit over time from directional price action movements and that they will have different correlation and volatility properties. Our trading approach incorporates the technical and fundamental backgrounds of our account managers.
In doing so, we focus on the forests and the trees. We look at the world first through a macro lens, and then we sweat the details to make sure that we pick the best trees to capture the macro opportunities we seek to benefit from the intricacies of the intraday forex market.
We look at all types of drivers of return. Like other day traders and investors, we pay close attention to the fundamental characteristics of the trade – both known and forecasted – but we don’t stop there. Prices don’t simply move based on fundamentals, but also based on shifts in investor preferences for those assets. These shifts in investor preferences are precisely what technical models intend to capture – but without insight and after the fact. Our approach is to identify the underlying drivers so that we may anticipate changes in investor behaviour in a way that few do.
Risk management plays a vital part of both our offence and defence. Risk is what investors are being paid to bear, so we try to understand and avoid those risks that are uncompensated, in exchange for those risks that provide real opportunity. We then layer on an entirely independent view of risk – independent of our process, our own data, and our investment team – that further challenges our own thinking about risk.
Aggressive Profits With Strict Risk Management
This three dimensional approach is a crucial part of our competitive edge.
The Dragon FX managed account is designed to achieve aggressive outsized profits while building on the foundation of rigorous risk management and capital preservation principles. We seek to minimize open market exposure while maximize the opportunities presented to us by the volatility inherent in the foreign currency market.
For our team, Dragon FX’s long term success means acknowledging and preparing for those times when markets and/or strategies may stagnate or result in losses. We employ the discipline, structure, and dedicated research and development to weather and limit these periods to insignificant levels.
Our uncompromised focus on risk management is paramount to all we do. We analyze risk with a proprietary combination of internally developed tools that evaluate downside via a variety of metrics. Strict risk management is rooted within every step of the investment process. This reflects a combination of capital exposure limits, stop losses, and quantitative measures.
The Dragon FX trading strategy employs a unique blend of manual discretionary and automated algorithmic trading components, alongside very strict fundamental analysis of news flows. This approach offers a broad diversification in terms of time horizon, product, and investment objectives.
The “Opportunistic” sub-strategy applied by Dragon FX is a proprietary algorithm which exploits market price anomalies. These anomalies can be described as trending or mean reverting tendencies of relative market prices.
The unique nature of the Dragon FX trading approach is to identify such tendencies. Decisions are based on a quantitative model designed to detect persistent market inefficiencies in relative price action. Proprietary quantitative methods in trade executions lead to disciplined, transparent decisions and ensure profound risk management.
The “Systematic” sub-strategy incorporates a proprietary multi-time frame break out model that trades a select group of major, dollar block and emerging market currency pairs. The model includes short-term and medium-term components which enable it to profit from short-term and longer-term price action movements.
It utilizes a proprietary screen to measure volatility relative to its historical range. This process identifies trade opportunities with risk-to-reward potential that is expected to be disproportionately favorable. The model is comprised of two components that focus on different time horizons. The short-term component has an average trade duration of 3 days and is designed to profit from short-duration currency momentum and counter-trend price moves. The medium-term component is designed to participate in sustainable price trends and has an average trade duration of approximately 23 days.
The investment philosophy centers on the belief that a portfolio driven by fundamental themes with a tactical risk-control framework can be profitable and uncorrelated.