The primary investment objective of the Partnership is growth of capital. The Partnership will engage in buying and selling retail off-exchange currencies. The General Partner intends that the Partnership’s objective will be achieved by employing the “K‑Algo” trading program, proprietary algorithm to implement a disciplined trading approach to all or some of the following G7 currencies; US, Can, Aust., Swiss Franc, Japanese Yen, Euro, Pound Sterling. The Partnership’s assets will be used to trade all or some of the following currency pairs, AUD/CAD, AUD/NZD, CAD/CHF, EUR/GBP, EUR/NZD, GBP/CAD, NZD/CHF and AUD/CHF.
The Manager has developed and will execute the “K‑Algo” trading program, proprietary trading algorithm. The proprietary algorithm, “K‑Algo”, is an all weather strategy designed to thrive in various economic scenarios; this approach aims to deliver stable returns during both bull and bear markets and periods of inflation and deflation. The algorithm has low correlation to equities and bonds and other hedge strategies in general. The K‑Algo operates with two separate strategies that work together:
- the first uses mean reversion to spot the start for a potential reversal using proprietary indicators.
- the second strategy uses a trend following approach, catching a wave and riding it to the shore.
With this approach K‑Algo is designed to determine the type and direction of the current trend more accurately for each cross; and choose the most effective time for generating a signal to open trades. K‑Algo is designed to be an effective tool for day and swing trades. K‑Algo is designed to place stops and targets on every single trade placed (sometimes the stop level could be hidden). Following the initiation of a trade, a “Take Profit” order is placed at the target price level determined by K‑Algo. Additionally, K‑Algo is designed pinpoints the moment when a setup is considered expired, and the trade will be closed if the target price is not reached. The Managers believe that this approach enables the algorithm to close profitable trades as swiftly as possible. The exit from a position could be also made by trailing stop, which allows K‑Algo to obtain the maximum profit from the trend. At the same time, K‑Algo is designed with combination of trend detection methods that are designed to filter out unwanted signals during sideways price movements. The K‑Algo is designed to analyze mixed pools of cross currency pairs with different levels of volatility (AUD/CAD, AUD/NZD, CAD/CHF, EUR/GBP, EUR/NZD, GBP/CAD, NZD/CHF, AUD/CHF) to balance the risks and not relying on the dynamics of one specific currency. The number of opened trades, per setup, is limited to keep the risk under control and is closed by our proprietary indicator when it reaches desired levels.