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TRADERTALK<br />
things like prepare written reports,<br />
approve expenses, marketing, etc.<br />
Joe Garbade, our operations<br />
person, does an incredible job<br />
with day to day reporting and<br />
<strong>com</strong>pliance.<br />
The Currency Strategies Fund<br />
invests primarily in exchange<br />
traded products and/or mutual<br />
funds, the value of which are tied<br />
to currency prices What do you<br />
like about exchange traded<br />
products and what advantages<br />
do they offer for investors?<br />
The vast majority of the mutual<br />
fund clients and audience to the<br />
fund are advisors and regional<br />
brokers. Right now, we believe<br />
that a fund of funds makes sense<br />
because the items we choose to<br />
trade do consistently track the<br />
prices of the currencies they are<br />
designed to replicate. It is easy for<br />
advisors and other professionals to<br />
use our fund because most<br />
understand how ETFs or mutual<br />
funds work, and it is simple for<br />
them to track as well. They can<br />
explain the fund it to their clients.<br />
As the fund grows, we will be<br />
160 | january 2010 e-FOREX<br />
integrating other tools for trading<br />
that will <strong>com</strong>plement our ETF<br />
trading, but at the same time, give<br />
us more choices, liquidity, and at<br />
the same time will reduce overall<br />
expenses of the fund. In other<br />
words, we want to use tools that<br />
will get us to our goal – and<br />
sometimes ETFs are the way to<br />
go, and sometimes they are not.<br />
You use proprietary technical<br />
analysis to determine which<br />
currencies you believe will<br />
outperform the U.S. Dollar. What<br />
tools do you use to assist you<br />
with this and what momentum<br />
characteristics is the analysis<br />
based on?<br />
We are looking for out<br />
performance from either side of<br />
the pair, whether the winner is the<br />
US Dollar or not. Primarily, we<br />
have used Tradestation for<br />
building our unusual indicators<br />
and auditing of the code is verified<br />
by good old-fashioned Microsoft<br />
Excel. Momentum is measured<br />
on the ascension on consistency of<br />
price, but, we do receive<br />
contrarian sells when consistency<br />
>>><br />
Anthony Welch<br />
is <strong>com</strong>promised and contrarian<br />
buys when consistency is reestablished.<br />
One beauty of<br />
Tradestation is that you can view<br />
your indicators in a columnar<br />
format that is sortable. This<br />
eliminates the need for 6 different<br />
video monitors in the workspace.<br />
We can see more actionable<br />
information for trading on one<br />
21” screen than we’ve seen on<br />
multiple screens in other offices.<br />
We like it simple. The hard work<br />
has already been done developing<br />
the models, thus, the trading<br />
signals derived from that hard<br />
work is clear and simply displayed<br />
for action.<br />
What measures determine what<br />
initial allocation to a currency<br />
you may make and then whether<br />
to increase or decrease it?<br />
This is not mandated by<br />
prospectus, but, we use equal<br />
weighting due to the<br />
overwhelming history that equal<br />
weighting enhances performance<br />
starting around 3 year rolling<br />
period and improves dramatically<br />
in longer timeframes. Equal
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