Asset Investment Management

What the Fed Funds rate is and how it’s set

In the United States, the federal funds rate is the interest rate at which institutions actively trade balances held at the Federal Reserve.

Click here to enlarge the chart below
Click here for a current chart and historical data

How Fed Funds Trade

Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The interest rate that the borrowing bank pays is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

Click here for the names of the individuals that determine rates.
Click here for the 12 regional Federal Reserve Banks and their presidents.
Click here for the F.O.M.C. meeting and post meeting press conference schedule.
Click here Bloomberg interactive Fed Funds rate chart.
Click here for the 1954-2013 Fed Funds rate chart and historical price data from the Federal Reserve

The Federal Reserve uses open market operations to influence the supply of money in the U.S. economy to make the federal funds effective rate follow the federal funds target rate.

U.S. banks and thrift institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10% of the total value of the bank’s demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accounts, NOWs, and other deposits that can be used to make payments) the reserve requirements are 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution are carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank is negotiated between the two banks and the weighted average of this rate across all such transactions is the federal funds effective rate.

The nominal rate is a target set by the governors of the Federal Reserve which they enforce primarily by open market operations. That nominal rate is almost always what is meant by the media referring to the Federal Reserve “changing interest rates.” The actual Fed funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it can set a specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting’s agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media.

Applications

Interbank borrowing is essentially a way for banks to quickly raise liquidity. For example, a bank may want to finance a major industrial effort but not have the time to wait for deposits or interest (on loan payments) to come in. In such cases the bank will quickly raise this amount from other banks at an interest rate equal to or higher than the Federal funds rate.

Raising the federal funds rate will dissuade banks from taking out such inter-bank loans, which in turn will make cash that much harder to procure. Conversely, dropping the interest rates will encourage banks to borrow money and therefore invest more freely^.Thus this interest rate acts as a regulatory tool to control how freely the US economy operates.

By setting a higher discount rate the Federal Bank discourages banks from requisitioning funds from the Federal Bank, yet positions itself as a lender of last resort.

Comparison with LIBOR

Though the London Interbank Offered Rate (LIBOR) and the federal funds rate are concerned with the same action, i.e. interbank loans, they are distinct from one another, as follows:

The target federal funds rate is a target interest rate that is set by the FOMC for implementing U.S. monetary policies.
The (effective) federal funds rate is achieved through open market operations at the Domestic Trading Desk at the Federal Reserve Bank of New York which deals primarily in domestic securities (U.S. Treasury and federal agencies’ securities).
LIBOR is calculated from prevailing interest rates between highly credit-worthy institutions.
LIBOR may or may not be used to derive business terms. It is not fixed beforehand and is not meant to have macroeconomic ramifications.

If you have questions send us a message or schedule an online review .

Regards,
Peter Knight Advisor

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Privacy Notice

Disclosure

x

What can go wrong & all at once

On the 8th of August 2018 this client was trading 3 programs with $55,750, $50,000 in principle, $5,750 in profits from previous trades.

Programs traded

1) Gold Collar
2) S&P Collar
3) Trading rate higher based on the Fed’s expectations for the rate they set.

All three programs went into drawdown’s at the same time making this the worst allocation I’ve traded for any new client in 2014.

Gold

The performance for his gold trades
What is posted on site ($11,002.07)
Versus his accounts actual loss in Gold ($10,975.72)
In his favor +$228.35

($10,975.72) was less than the previous worst case drawdown of ($12,276.00) and less than the represented risk of ($15,000), in unto itself Gold would not be problematic, especially had either the S&P or the rates higher program picked up the damage. I wrote a report on why the losses in gold occurred and shared it with all clients trading the Gold Collar program.

The S&P Collar didn’t help out, it added insult to injury

August 2018 through October 2018

Reported loss on site was ($7,930.29)
His actual performance ($7,715.22)
In his favor +$215.07

Reason for the discrepancy the client started on the 8^th of August 2018 and missed the first losing trade of the month.

November 2018

Reported on site +$1,314.06
Client actual performance ($1,134.18)

Reason for the discrepancy, on the 24^th of October the client revised his maintenance balance from 20,000 EUR up to $28,500 USD.

Friday the 16^th of November 2018 his settlement balance was $29,321.84. Because his liquidation valuation was very close to his $28,500 maintenance balance he was automatically reduced to trading a maximum of 1 S&P contract and participating only in S&P trades with $1,000 or less maximum risk.

Maximum risk on the trade taken ($830.17) this position was offset on Friday the 23^rd of November net profit $795.00. He was also trading Gold and Rates higher program. Excluding rate trades if both Gold and the S&P hit maximum risk on the week of the 19^th he would still be above his $28,500.00 liquidation value on Friday the 23rd, Both the S&P Collar and Gold Collar are in Recovery in December.

From Friday the 16^th of November 2018 through Friday the 23^rd of November 2018 the S&P dropped from 2,742.25 to 2.628.50 down 113.75 points, value of the move = $5,687.50

The S&P Collar program added positions all the way down, of the $5,687.50 potential profit the S&P collar program caught $3,270.24. Because the client had moved his maintenance balance higher from 20,000 EUR to $28,500 USD and it was $29,321.84 Friday the 16^th of November 2018 his S&P positions were limited to 1 contact. Of the $3,27024 potential move the client only captured $795.00, the difference ($2,475.24)

Chart

August 2018 through October 2018 S&P collar program drawdown

Reported loss on site was ($7,930.29)
His actual performance ($7,715.22)
In his favor +$215.07

November 2018

Reported on site +$1,314.06
His actual performance ($1,134.18)
Against him ($2,475.24)

S&P Summary

Site versus his actual performance

Program performance on site = ($6,589.23)
His actual performance = ($8,849.40)

August 2018 discrepancy
On site = ($1,394.93)
His actual loss ($1,217.84)
+177.09 in the client’s favor

November discrepancy
On site +$1,341.06
His actual performance = ($1,134.18)
Difference = ($2,475.24)

S&P Performance Summary

Reported S&P Collar Performance = = ($6,589.23)
His actual performance = ($8,849.40)
August discrepancy explained ($215.07)
November discrepancy explained $2,475,24
Net difference = ($2,260.17)

During this period I wrote a report and posted linked here providing all clients trading the S&P Collar program of whay I believe losses occurred.

Although the market from the 8th of August through the 30th of November 2018 was ideal for a very short term trading programs it’s lethal for long term trading programs that have minimum trade duration of 1 week.

Chart

Assuming we had an intra-month, Intra-day, maximum drawdown of ($9,849.40 exceeding his drawdown of ($8,849.40) by $1.000.00 the S&P Collar would still be below the previous worst case drawdown of ($12,457.00) and well below the represented risk of ($15,000). Again the S&P unto itself with a ($6,589.23) drawown would not have been problematic.

Adding further insult to Injury

Based on consistent statements made my both Fed chair Yellen and now Powell
from November 2015 though the 26th of September 2018, I represented to the client that trading rates higher according to the Fed had a high probability of showing gains. I consistently did traded rates higher anticipating the Federal Reserve would eventually correct about the rate they set. For confirmation see the Fed’s website.

The client started trading the rates higher on the 8th of August 2018, when rate hike expectation were trading at 0.4200%, position value $10,500.

From the 8th of August 2018 until the Fed meeting 26th of September we were able to show him a small net profit of $1,250.00 on offset positions, open trad equity was negative, out of a potential gross profit of of $2,875.00.

From the Fed meeting press conference on the 26^th of September 2018
Full Fed post meeting press conferences the 26th pf September 2018 (57:51)

At this press conference Fed Chair Powell told us

“The US Economy is strong”
“Growth is running at a healthy clip”
“Unemployment is low”
“The number of people working is rising steadily”
“Wages are up ”
“Inflation is low and stable”
“Rates are normalizing”
“All of these are very good signs”

Fed chair Powell also stated the Fed expects they will raise rates from 2.15% on 26th of September to 3.40% by December 2020. For confirmation see the Fed’s website. This statement was consistent with every Fed meeting press conference held since November 2015 without exception.

Chart August through November 2018

After Powell’s glowing report on the 26^th of September 2018 on the the US economy and it’s future, rate hike expectations went up from 0.5050% position value = $12,625.00 to 0.6450% position value = $16,125.00 the 5th of October 2018.

There still was a large aberration between where 15+ trillion in the face value of open positions was pricing rate increases at 0.6450% and the Fed’s anticipated rate increase of 1.25% by December 2020. I continued to trade the client’s rates higher account aggressively, anticipating that the people that run the World’s largest Central Bank had a clue about the rate they set.

I also believed that the move already underway would continue and downward pressure would be temporary and the market would eventually price in Fed expectations of 1.25%, position value $31,205.00.

It didn’t work out that way, rate hike expectations went down hard from 0.6450% position vale = $16,125.00. on the 5th of October 2018 to 0.2300% by the 28th of November 2018 position value $5,750.00, for a loss per position of ($10,375.00). The client from the 26th of September 2018 though the 28th had a net loss of ($10,905.00).

Chart

During this sell off I did my best to adjust his positions not only to minimize the damage but to capture any recovery to recoup the loss and be profitable. Trade frequency was high clearing and exchange fees we’re running in excess of 3 times their monthly average.

Total loss in rates (9,655.00)

In this scenario this client experienced nearly the worst possible scenario in all three sectors he was trading at the same time on every front.

Simultaneous net losses occurred from 8th of August 2018 through the 30 of November 2018, generating a drawdown of $29,450.12 out of a represented risk of $40,000.

Gold	($10,945.72)
S&P	(-$8,849.40)
Rates Higher	(-$9,655.00)
Lossed From high	(-$29,450.12)

Start balance	$50,000.00
Marjket Gains	$55,750.00
Ending balance	$26,299.88
Net loss from high	(-$29,450.12)
Loss on principle	-$23,700.12

Although situations like this are very rate should you decide this or any speculative program be emotionally and financially to deal comfortable with a scenario like this.

Conclusions

During volatile markets regardless of how successful your programs have been lighten up and live, just as profit cycles can get larger so do drawdowns.

Don’t fall in love the economic fundamentals, always trade with the trend, long or short. Learn from my mistake with my program trading rates only higher.

Although this strategy worked very well from 2015 to mid 2018 and appeared to still be a valid based on the continued guidance by the Fed telling us they will hike the current 2.15% rate to 3.40% by December 2020. Believing the Fed had a clue about the rate they set was one of the top blunders of the past decade.

Know your risk tolerance level then cut it in half to eliminate stress, if your risk tolerance is $100,000 USD use $50,000, once the account is up $150,000 then increase overall risk to $100,000, it’s a lot easier to add positions when profitable than reduce when you’re in a large drawdown.

If you have any questions send a message or contact me

Regards,
Peter Knight Advisor

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Privacy Notice

Disclosure

Where the Fed sees rates and when

3 out of the last 4 Fed meetings have produced clear guidance as to where the Fed sees the rate they set and when.

Click on the image below to play the 2 minute video

Click here for the complete press conference
Fed’s disclosed key levels between now and December 2017

Top end of the Fed’s current target range = 0.2500%, value = $1,041.50

End of 2015 = 1.1250%, value = $4,687.50

End of 2016 = 2.5000%, value = $10,416.67

End of 2017 = 3.7500%, value = $15,625

1954-2014 Average = 5.0000%, value $20,833

15 out of 17 Fed participants see tightening in 2015
Click here to enlarge the chart below

Appropriate Pace of Policy Firming as of December 17th 2014
Click here to enlarge the chart below

Click here to enlarge the rate valuation chart below, each 0.01 = $41.67
Click here for a current chart and the 1954-2014 historical price data

From the FOMC opening statement
Click here to download the full statement from the Fed’s website
Click here for the FOMC schedule, all statements, press releases and videos.

Click here for current Bloomberg cash market chart

RISK DISCLOSURE STATEMENT

PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

BID/ASK SPREADS, BROKERAGE COMMISSION, CLEARING, EXCHANGE AND REGULATORY FEES WILL HAVE AN ADVERSE IMPACT ON THE NET OVERALL PERFORMANCE OF YOUR ACCOUNT. PRIOR TO MAKING A DECISION TO PARTICIPATE IN ANY INVESTMENT MAKE SURE YOU FULLY UNDERSTAND THE FEES ASSOCIATED WITH TRADING.

THE INFORMATION PROVIDED IN THIS REPORT CONTAINS RESEARCH, MARKET COMMENTARY AND TRADE RECOMMENDATIONS. YOU MAY BE SOLICITED FOR AN ACCOUNT BY ONE OF OUR REPRESENTATIVES OR EMPLOYEES. IT SHOULD BE KNOWN THAT THE REPRESENTATIVES OF OUR FIRM MAY TRADE FUTURES AND OPTIONS FOR THEIR OWN ACCOUNTS OR THOSE OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS MARGIN REQUIREMENTS, RISK FACTORS, TRADING OBJECTIVES, TRADING INSTRUCTIONS, TRADING STRATEGIES, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE LIQUIDATION OR INITIATION OF FUTURES OR OPTIONS POSITIONS THAT DIFFER FROM THE OPINIONS AND RECOMMENDATIONS FOUND IN THIS REPORT.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES

Where the Fed see’s rates, when and what this move is worth

1) Click here for a 2 minute video of Fed chair Yellen’s expectations for the rate the Fed sets.

Fed chair Yellen has confirmed these levels in 3 out of the last 4 Fed meetings. Click here for additional confirmation directly on the Fed’s website; see the FOMC statements and press conference videos

2) Fed’s disclosed levels between now and December 2017

Current = 0.1000%, contract price 99.9000, value = $416.17

Oct 2015 = 0.9100% contract price = 99.0900, value = $3,972
Dec 2015 = 1.1250%, contract price = 98.8750, value = $4,687
Dec 2016 = 2.5000%, contract price = 97.5000, value = $10,417
Dec 2017 = 3.7500%, contract price = 96.2500, value = $15,625
1954-2014 Average = 5.1000%, contract price 94.9000, value = $22,250
Source Federal Reserve Website

3) Fed funds are currently trading at 0.1000% contact value = $416
The Fed’s current target for the Fed funds rate by the end of 2017 is 3.75%
Contract value = $15,624

Click here to enlarge the rate, price valuation chart below, each 0.01 = $41.67
Click here for a current chart and the 1954-2014 historical price data

4) One trade to capture this long term move

Click here for one way we’re capturing the first leg og the move higher in rates including an interactive risk/reward spreadsheet enabling you to experiment with any potential outcome for this trade and/or monitor performance forward.

Click here to enlarge the rate, price, valuation chart below

5) Click here for a 6 minute video to learn how to calculate the difference between where the Market is expecting the Fed Funds relative to where the Fed believes it will be.

6) If you’d like to review other strategies call with this page up or the links below available. Once our review is complete you’ll understand what we’re trading and how enabling you to experiment with any potential outcome for any trade and/or monitor performance forward.

Additional spreadsheets

Fed Funds

22) What the Fed funds rate is and how it’s set
23) Contract specifications
24) Fed funds quotes all deliveries
25) July 2015 25k no hedge
25) July 2015 99.83 25K cost average hedge
26) July 2015 99.82 25K 87.50 hedge
27) July 2015 10K 99.81/99.75 hedge
28) Sep 2015 25k cost average hedge
29) Oct 2015 25K cost average hedge
30) Dec 2015 25K cost average hedge

3 Month

31) What the 3 month rate is and it’s history
32) Contract specifications
33) 3 Month Hedged Cost Average
34) 3 Month Rate September 2015 hedge
35) 3 Month Rate December 2015 hedge

Call for Euro and Asian rate strategies

For additional information/reports on any market listed here call or email.

Regards,
Peter Knight – Advisor

contact

RISK DISCLOSURE STATEMENT

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES

InterBank 5415 at 25K

January 1998 through June 2015

Unit size = $25,000
Net profit per trading unit = +$544,056.12
Average annual gain = +124.35%
Greatest net drawdown from highest high to lowest low = -$10,060.81
Performance is based on trading one unit and deducting all net profits annually.

1) Click here for 1998-2015 marked-to-the-market daily performance in excel format.

Risk disclosure

2) Below the individual trading systems

Full disclosure of objective trading methodology
All historical data
Every order generated
Every trade entry, offset, profit or loss for all 4,559 days

EUR001T
EUR004T
EUR007T
EUR008T
EUR009T
EUR021T
CHF003T
CHF007T
CHF009T
CHF003R
JPY006T
JPY009T
JPY010T
JPY012T
AUD001T
AUD004T
AUD005T
AUD006T
GBP001T
GBP002T
GBP004T

3) There are 2,097,151 possible combinations of the 21 systems above click here for the top 25,000 sorted by total profit divided by maximum drawdown in excel format.

4) Fees

Front load = 0.00%
Management fee 0.00%
Incentive fee = 10% of net new high profits quarterly dependent on account size

5) Reporting and liquidity

Positions and liquidation value are available online at anytime.
Accounts can be funded and maintained in any major currency
Liquidity in portion or all 2-48 hours in any major currency.

6) Click here to open an account

If you have any questions or need additional information contact us

RISK DISCLOSURE STATEMENT

PROGRAM AVAILABILITY IS DEPENDENT ON YOUR COUNTRY OF RESIDENCY AND FINANCIAL STATUS

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FOREX OR FUTURES CONTRACTS OR OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES.

Interbank 5245 at 50K

January 1998 through June 2015

Unit size = $50,000
Net profit per trading unit = +$955,612.88
Average annual gain = +109.21%
Greatest net drawdown from highest high to lowest low = -$-18,231.61
Performance is based on trading one unit and deducting all net profits annually.

1) Click here for 1998-2015 marked-to-the-market daily performance in excel format.

Risk disclosure

2) Below the individual trading systems

Full disclosure of objective trading methodology
All historical data
Every order generated
Every trade entry, offset, profit or loss for all 4,559 days

EUR001T
EUR004T
EUR007T
EUR008T
EUR009T
EUR021T
CHF003T
CHF007T
CHF009T
CHF003R
JPY006T
JPY009T
JPY010T
JPY012T
AUD001T
AUD004T
AUD005T
AUD006T
GBP001T
GBP002T
GBP004T

3) There are 2,097,151 possible combinations of the 21 systems above click here for the top 25,000 sorted by total profit divided by maximum drawdown in excel format.

4) Fees

Front load = 0.00%
Management fee 0.00%
Incentive fee = 10.00% of net new high profits quarterly dependent on account size

5) Reporting and liquidity

Positions and liquidation value are available online at anytime.
Accounts can be funded and maintained in any major currency
Liquidity in portion or all 2-48 hours in any major currency.

6) Click here to open an account

If you have any questions or need additional information contact us

RISK DISCLOSURE STATEMENT

PROGRAM AVAILABILITY IS DEPENDENT ON YOUR COUNTRY OF RESIDENCY AND FINANCIAL STATUS

EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES.

Interbank 4883 at $35k

January 1998 through June 2015

Unit size = $35,000
Net profit per trading unit = +$844,297.94
Average annual gain = +137.84%
Greatest net drawdown from highest high to lowest low = -$-16,857.12
Performance is based on trading one unit and deducting all net profits annually.

1) Click here for 1998-2015 marked-to-the-market daily performance in excel format.

Risk disclosure

2) Below the individual trading systems

Full disclosure of objective trading methodology
All historical data
Every order generated
Every trade entry, offset, profit or loss for all 4,559 days

EUR001T
EUR004T
EUR007T
EUR008T
EUR009T
EUR021T
CHF003T
CHF007T
CHF009T
CHF003R
JPY006T
JPY009T
JPY010T
JPY012T
AUD001T
AUD004T
AUD005T
AUD006T
GBP001T
GBP002T
GBP004T

3) There are 2,097,151 possible combinations of the 21 systems above click here for the top 25,000 sorted by total profit divided by maximum drawdown in excel format.

4) Fees

Front load = 0.00%
Management fee 0.00%
Incentive fee = 10.00% of net new high profits quarterly dependent on account size

5) Reporting and liquidity

Positions and liquidation value are available online at anytime.
Accounts can be funded and maintained in any major currency
Liquidity in portion or all 2-48 hours in any major currency.

6) Click here to open an account

If you have any questions or need additional information contact us

RISK DISCLOSURE STATEMENT

PROGRAM AVAILABILITY IS DEPENDENT ON YOUR COUNTRY OF RESIDENCY AND FINANCIAL STATUS

EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES.

RISK DISCLOSURE STATEMENT

RISK DISCLOSURE STATEMENT

PROGRAM AVAILABILITY IS DEPENDENT ON YOUR COUNTRY OF RESIDENCY AND FINANCIAL STATUS

EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES.

EURCHFUSD

After nearly 10 years of respectable performance this program experienced a drawdown of -$7,813.80 on the 12th of April 2019. Program drawdowns are measured from highest intra-day equity high to lowest intra-day equity low.

-$7,813.80 took out this program’s risk tolerance level of -$7,500.00 by -$318.80 the automatic equity stop loss engaged at -$7,500.00 and all positions were liquidated by the settlement on the 12th of April 2019, final post liquidation drawdown -$7,561.82.

I’m going to continue to monitor this program’s performance, should it recover generating an acceptable return on risk I may reactivate it with a higher minimum start balance, for updates please contact me.

Lifetime Performance Summary July 2009 though closure 12 April 2019

Minimum Starting Balance	$12,500.00
Cumulative Net Profit	$100,931.41
Maximum Drawdown (60.45%)	($7,561.82 )
Best Year 2012 +112.93%	$14,116.55
Worst Year 2011 +60.28%	$7,535.56
2007-2019 Average +82.36%	$10,295.40
2019	($7,561.82)

Performance is based on trading one $12,500 unit, never adding units and withdrawing all net profits annually.

The program has a realistic risk factor of $7,500 USD per unit, if you are not in a position to comfortably assume this risk you should not participate in the program.