Type: Managed Forex
The AAM Isis Program is a short-term discretionary trading model developed in 2004 and is focused on global spot FX currencies. The approach is applied predominantly to the G-12 currency markets from the 32 currency pairs available in the portfolio.
The key features of the Isis Program are:
• Not trend following
• Not correlated to traditional assets
• No negative years since inception
It generates trading strategies aimed at providing superior returns. There are typically 1-12 trades per month, with positions being held from within an intra-day basis to approximately 7 days.
It is driven by Blackwave Technology™. This proprietary system was designed to capture short-term trend reversals in the market using pattern recognition and statistical time series algorithms combined with advanced technical indicators.
The trading methodology benefits from a robust risk management framework. Controlling downside risk on each and every trade provides two significant advantages. The first is that it focuses on selecting trades with good reward/risk ratios. Secondly, strict discipline in respecting both the stop loss level and the take profit target are what determines its success.
Risk is allocated within the construction of each individual trade. At an overall portfolio level, there is maximum monthly stop loss limit for the strategy at -6%. The average number of trades per month forms the basis of the consistency of the risk allocated to each and every single trade. The program trades approximately 1-12 times per month, and will generally risk between 0.50% – 2.00% on any given trade. This consistent approach to risk allocation per trade in a discretionary strategy is the key to generating steady returns over time.
Risk is monitored in real time. If the maximum monthly stop loss is hit in any month (which has never occurred), the manager must cease to trade. If this were the case on three months running, an objective assessment would be carried out internally (and with communication to our clients) as to that manager’s viability within the overall portfolio
