Portfolio structure
1
Investment Method / Portfolio Structure (CFds, Options, Spot) Contemporary traders combine a blend of remote trading styles to produce profitable portfolios in Options and CFDs. While a number of traders have restricted their specialty to FX CFDs in Nigeria, specialties should include trading CFDs, Options and the Spot market. Combining an uncommon technique used by CME top traders to create a block of defensive position on the buy/sell side, while opened positions can be liquidated at between 150% and 200% per theta can guarantee position. Otherwise, the (-/+) 0.5 delta Option position employed to reduce volatility, will be left to expire “in the money” while reducing any loss to 0.5% per time. This trading style is not a common practice in Nigeria, but it enables propriety accounts to be effectively managed even with a portfolio mix of volatile assets like FX CFDs, Gold and Crude Oil. Principal Investment Strategy: Currency 50%, Precious metals 15%, Market Index 15%, Agriculture 5% and Energy 15%. Opened position is limited to 1% with maximum risk limited to 5% maintained by a “+/-0.5” delta or neutral Option strategy at 4.5% mid volatility backed by technical analysis and market sentiment calculation. Principal Investment Risk: the first risk may arise from trend reversal when trades are not closed before the reversal. Market volatility is another risk that may limit trades but the mid volatility Option strategy will provide adequate covering. The third risk may arise from erroneous trading decision but limited by the Option strategy and risk control technique. Principal Investment Reward: the method can return up to +31% annually. One important benefit of this method is that it is insulated from the downturn of the world economy because Spot, Futures, CFDs and Options provide profit opportunities in both buy or sell position when protected by the Option trades. [email protected]
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Transcript of Portfolio structure
Investment Method / Portfolio Structure (CFds, Options, Spot)
Contemporary traders combine a blend of remote trading styles to produce profitable portfolios in Optionsand CFDs. While a number of traders have restricted their specialty to FX CFDs in Nigeria, specialtiesshould include trading CFDs, Options and the Spot market. Combining an uncommon technique used byCME top traders to create a block of defensive position on the buy/sell side, while opened positions can beliquidated at between 150% and 200% per theta can guarantee position. Otherwise, the (-/+) 0.5 deltaOption position employed to reduce volatility, will be left to expire “in the money” while reducing any lossto 0.5% per time.
This trading style is not a common practice in Nigeria, but it enables propriety accounts to be effectivelymanaged even with a portfolio mix of volatile assets like FX CFDs, Gold and Crude Oil.
Principal Investment Strategy: Currency 50%, Precious metals 15%, Market Index 15%, Agriculture5% and Energy 15%. Opened position is limited to 1% with maximum risk limited to 5% maintained by a“+/-0.5” delta or neutral Option strategy at 4.5% mid volatility backed by technical analysis and marketsentiment calculation.
Principal Investment Risk: the first risk may arise from trend reversal when trades are not closedbefore the reversal. Market volatility is another risk that may limit trades but the mid volatility Optionstrategy will provide adequate covering. The third risk may arise from erroneous trading decision butlimited by the Option strategy and risk control technique.
Principal Investment Reward: the method can return up to +31% annually. One important benefit ofthis method is that it is insulated from the downturn of the world economy because Spot, Futures, CFDsand Options provide profit opportunities in both buy or sell position when protected by the Option trades.
