SALZWORTH SYSTEMATIC STRATEGIES
Designed to deliver consistent and sustainable growth in the long run.
About the Strategies
Salzworth FX team specializes in using a systematic trading approach to invest in currencies, focusing on G10 currency pairs/Gold spot instruments.
Our strategy seeks stable capital appreciation in the mid to long term, with a low correlation to the performance of traditional asset classes.
Strict risk management principles are put in place to safeguard the capital and its investors. We place the highest priority on controlling our risk and losses to preserve capital and aim for long-term wealth accumulation.
There is no lock-in period for our trading, thereby offering investors high liquidity while enjoying above industry-average returns on their capital.
What is our Investment Approach?
Our systematic trading system comprises multiple and diverse trading drivers, with each driver aiming to exploit different market opportunities and inefficiencies in the global FX market.
By building a portfolio of diverse FX trading strategies, we are able to diversify our risk allocation and regulate our capital drawdown, generating consistent and sustainable returns in the long run.
Our portfolio leverages advanced algorithms and optimization techniques to capitalize on extreme market moves and risk management techniques to protect assets from sudden market movements and potential drawdowns. The use of algorithms eliminates human failings by providing a systematic and risk-disciplined approach to trade execution, optimizing the speed and scale of our trading.
Our proprietary risk system actively monitors market conditions and automatically adjusts trailing stops to protect gains and prevent erosion of returns. This dynamic risk management approach helps to preserve capital and ensures that your investments are safeguarded at all times.
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Key Advantages of FX Spot Trading
- Largest and most liquid global financial market
- Long/short instrument entails profit potential in both bullish and bearish markets
- Uncorrelated returns to equity and bond indices
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Key Advantages of Algorithmic Trading
- Objective trading without interference from human emotions
- No down-time: able to monitor and execute trades at all hours
- Able to execute trades much faster and more accurately than human traders
- Able to trade more instruments in multiple markets
- Disciplined approach in cut loss / take profit levels: not affected by emotions
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Risk Management Principles
- Invest in liquid instruments only
- Incorporate multiple trading styles to limit market risk
- Real-time monitoring of profit and loss enforced by algorithms, with disciplined risk limits and multiple tiers of stop-loss features to manage portfolio risk.
Systematic Trading System
We aim to deliver absolute positive yearly returns in all market conditions.
Each of the constituent drivers in the trading system trades on different factors and dimensions. This allows us to benefit from the various profit factors of the drivers and helps in diversifying our risk exposure and in regulating the overall drawdown.
Our experience in this industry is that a single strategy is not scalable in the long run without running into capacity and depth of market issues. By incorporating multiple diverse strategies into a portfolio, we are able to scale sustainably and deliver quality risk-adjusted returns for our clients.
We believe this approach will enable a consistent and sustainable growth of capital in the long run and deliver the best client experience across market cycles.
Demonstrable Track Record
The construction and management of the trading system are built upon the FX team’s years of experience in the financial market and industry knowledge.
Prior to the launch of Salzworth Global Currency Fund in September 2019 (the Fund has been closed as of Sep 2023 for restructuring), the portfolio has been trading via a separately managed account since 2017.
We are currently running discretionary managed accounts for institutional investors.
Why Trade with Salzworth?
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Risk management comes first
Our focus on risk management is relentless and we do not chase profits blindly. We place the highest priority on controlling our risk and losses, which we believe is key to our ability in delivering sustained and superior investment performance for the mid-long term.
We believe in taking extra care of our losses and profits will take care of themselves.
Note to investor: While our investment approach seeks to control risk, risk cannot be eliminated.
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Diversified and uncorrelated returns
We employ a diversified approach, spreading our portfolio risk across multiple diverse trading drivers and different instruments to limit the loss contribution from any single one of them. This protects the overall portfolio’s downside exposure and avoids market spikes.
Each of the underlying trading drivers captures different alpha opportunities in the G10 currency / Gold space. On a whole, the portfolio aims to generate returns uncorrelated to conventional asset classes and to the broader market performance.
Note to investor: Past performance is not an indicator for current or future performance.
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Liquid, low-volatility and alpha-seeking
Our trading primarily spans across the G10 currencies/Gold spot universe, and the FX market is the largest and most liquid financial market in the world. With portfolio allocation and diversification across multiple trading drivers and different instruments, we seek to capture quality risk-adjusted returns, while harnessing the power of diversification to help limit volatility and capital loss.
Note to investor: Diversification may not fully protect you from market risk.
Who is this Service Available to?
Qualified Investors, as defined in Paragraph 1 of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations.