Anyone understand this?

Discussion in 'Professional Trading' started by BJL, Sep 26, 2007.

  1. BJL

    BJL

    Just browsing at cta performance records and reading their strategy i came across the following:

    100% Forex/Currency Carry Trade strategy that is hedged to protect against the large dislocations that occur from the unwinding of the carry trade. The method is purely math based and does not look at charts or indicators. We started this account during the worst possible time for this strategy since 1998, and our returns have still been positive. It is a multi-currency basket trading method. And example of a hedge type trade we may put on is Short EURUSD, short USDCHF and long EURCHF.This is a basic example, but you can see that each of the three curencies is represented by a long and a short, thus reducing the risk of the eventual carry trade collapse.

    Am I stupid or does the hedged trade mean no position at all?

    Interestingly enough they had quite a good return in august...
     
  2. gov

    gov

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  3. skepticaltrader

    skepticaltrader Guest

    I wouldn't subscribe to them since they can't spell the word currency correctly in the last sentence.