Our View of the Global Markets
We view the markets with a global perspective. We believe that we live in an economically, politically and financially interactive world. As a result, markets at different parts of the world interact with each other in generating both trend and volatility trading signals. Market trends are driven mainly by economic and political policies which tend to have longer term effect on the markets and are predictable based on fundamental research and detectable through monitoring market movements. Market volatility is mainly driven by participants' risk positions which tend to be a short term phenomenon and difficult to predict each time.
Our unique advantage is our understanding and in-depth knowledge of Chinese politics, economy, culture and markets due to our Chinese background. In light of the increasing impacts on global markets by China's political and economic policies, this China analytical advantage allows us to obtain yet-to-be reported news and detect potential policy changes ahead of main street Western media by several days to weeks.
Our global market view update can be found at Koston Feng's blog in Chinese at
http://blog.eastmoney.com/opto
Our Trading Strategy
We have two trading strategies which are run independently but developed jointly by our team. One is discretionary trading strategy. The other is program trading strategy.
Discretionary Trading
Although this strategy uses many fundamental and technical indicators, the trades are entirely discretionary. This trading strategy is focused on identifying both markets trend movement and markets volatility movement and then take advantage of them when we see a predictable trading pattern.
We follow major policy, economic and liquidity news all over the world to identify global market trends. We study technical charts and apply statistical tools in analyzing trading data to both verify our global markets trend views and identify risk positions in the markets. We apply both markets trend views and markets volatility views in our daily entry and exit decisions. Due to the precision of our market timing signals and the rigorous risk control of our trading strategy, we are able to make much higher risk-adjusted return for the trading capital we manage.
To minimize portfolio risk, we keep overnight risk positions at the minimum. Most of the trades are conducted during the active trading hours for each market. Since we only trade most liquid instruments, we can exit nearly all of our positions on any active trading day. Our expected monthly return is 5%-10%!
We have two funds under management. Fund 1: Opto Global Macro Fund and Fund 2: Opto Global Macro Aggressive Fund. Typical leverage for Fund 1 is 2 times, and 3-5 times for Fund 2.
Program Trading
Our program trading strategy is based on market observations from the viewpoints of technical analysis, market sentiment/breath, as well as correlations among various global markets. The strategy is back tested on over a decade of intraday data to ensure they work consistently under bull, bear, or trendless market conditions The strategy is developed by combining several sub strategies such as trend following strategy, counter-trend strategy, event/calendar pattern strategy, and cross-market correlation strategy to achieve the optimization between risk and return.
Risk Management
To minimize portfolio risk, both of our strategies will keep overnight risk positions at the minimum. Most of the trades are conducted during the active trading hours for each market. Since we only trade most liquid instruments, we can exit nearly all of our positions on any active trading day in any emergency situation.
Trading Instruments
We trade global equity index futures, and to a lesser degree, bond futures, commodity futures and currency futures. Our global equity index futures trades are mainly in US, Canada, Europe, Hong Kong, Japan, Australia, Korea and Taiwan markets. We occasionally use options on futures to control or manage risk. We only trade liquid instruments which allow us to trade large amount of capital without liquidity constraint on a daily basis.
Contact US
Linda Chen
Tel: (US) 917 882 9213
Email: linda@optoglobalmacro.com
© Opto Global Macro LLC, 2009. NY
