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ALGO FUND

TRADING PLATFORMS IS AN IMPORTANT PART OF YOUR TRADING EXPERIENCE

Trading in Forex and CFDs could lead to loss of all your invested capital

ALGO FUND

Portfolio Management

BWM Exchange™ offers a portfolio management service named Algo Fund, according which people’s money in their trading accounts are managed by an expert management team, based on people’s investment appetite, that allows them to generate growth of their investment over a medium-term period.

The Fund’s main advantages are: performs equally well both in rising and falling markets; risk is limited by using dynamic and extensive risk management/diversification measures; trading only highly liquid instruments.

ALGO FUND Strategy Overview

Strategy trades long/short spot FX, USD ‘’Majors’’ and cross pairs using a blend of fundamental and technical research. The time frames of trades are swing style, ranging from 2-20 days, generally 5-7 days on average.

The strategy looks for short-term momentum to define the trend and open positions in that direction. In particular, the Client’s trading account is managed through the use of algorithmic trading system that identifies either (i) the market trends and uses additional signals to enter the market with the direction of the current trend, or (ii) the overbought or oversold markets and uses those opportunities for short-term trend reversals.

A risk management system is adhered in order to maintain investor’s risk profile at the portfolio and position levels. Each trade has a pre-defined stop loss, position limit exposure as well as portfolio limit of gross exposure per currency pair. All trades are independent of each other and opened irrespective of other trade signals in the portfolio and thus no martingale or averaging system is applied.

Why Trade via ALGO FUND with BWM Exchange™?

Strategy Implementation Algorithm

  • Trading on Algorithmic base historical and current market data
  • Automated mathematical and statistical methods
  • Algorithms resolves when and what to trade (minimize market impact), and determines how to trade or not to trade at all - Investment strategies diversification
  • Access to major financial markets around the world
  • Strict Risk Estimation to minimize risk

Human Supervision

  • Our professional traders are supervising the trading process at all time

Execution Algorithm

  • Smart Order Router determines how to open and maintain an order and splits it to several smaller orders and gets better rates according to current market conditions
  • Robust technology for best execution

ALGO FUND Asset Allocation and Risk Management Measures

Asset Allocation

  • Invest only in CFD’s Forex.
  • Invest only in four main currency pairs: EUR/USD, GBP/USD, USD/JPY, EUR/GBP
  • Position size based on Client’s capital and risk profile (conservative, moderate, aggressive).

Risk Management Measures

  • Limits on the portfolio exposure to each currency pair based on the Client’s risk profile.
  • Adoption of VAR methodology for limiting portfolio losses from extreme adverse market conditions.
  • Limits on the frequency of trading.
  • Maximum acceptable drawdown of the portfolio value based on the Client’s risk tolerance.
  • Limits on each position losses and profits.
  • Adoption of trailing stop system for protecting position’s profits.
  • Adjustment of the trading signals in case crucial fundamental events occurred.

Indicative Measures per Client’s Risk Profile

  • Clients’ Risk Categories: Low, Low-Medium, Medium (Conservative)
Measures Trade lot size
Computation method Equity/10
Values on €10,000 Equity 0.01 lot
Measures Average No. of trades per day
Computation method 15
Values on €10,000 Equity
Measures Maximum exposure
Computation method 2.5 * Equity / Per Pair
Values on €10,000 Equity 0.25 lot
Measures Maximum acceptable drawdown
Computation method 25% or 30%
Values on €10,000 Equity
Measures Computation method Values on €10,000 Equity
Trade lot size Equity/10 0.01 lot
Average No. of trades per day 15
Maximum exposure 2.5 * Equity / Per Pair 0.25 lot
Maximum acceptable drawdown 25% or 30%
  • Clients’ Risk Categories: Medium-High (Moderate)
Measures Trade lot size
Computation method Equity/5
Values on €10,000 Equity 0.02 lot
Measures Average No. of trades per day
Computation method 15
Values on €10,000 Equity
Measures Maximum exposure
Computation method 3.5 * Equity / Per Pair
Values on €10,000 Equity 0.35 lot
Measures Maximum acceptable drawdown
Computation method 40% or 50% or 60%
Values on €10,000 Equity
Measures Computation method Values on €10,000 Equity
Trade lot size Equity/5 0.02 lot
Average No. of trades per day 15
Maximum exposure 3.5 * Equity / Per Pair 0.35 lot
Maximum acceptable drawdown 40% or 50% or 60%
  • Clients’ Risk Categories: High (Aggressive)
Measures Trade lot size
Computation method Equity/2.5
Values on €10,000 Equity 0.04 lot
Measures Average No. of trades per day
Computation method 15
Values on €10,000 Equity
Measures Maximum exposure
Computation method 5 * Equity / Per Pair
Values on €10,000 Equity 0.5 lot
Measures Maximum acceptable drawdown
Computation method 70% or 80% or 90% or 100%
Values on €10,000 Equity
Measures Computation method Values on €10,000 Equity
Trade lot size Equity/2.5 0.04 lot
Average No. of trades per day 15
Maximum exposure 5 * Equity / Per Pair 0.5 lot
Maximum acceptable drawdown 70% or 80% or 90% or 100%

Note: The risk category of an Algo Fund client will be determined by the BWM Exchange team based on information collected by the client during his registration for the service reception. Also, the trade lot sizes indicated above are those will be opened automatically by the trading system, and the portfolio manager at his sole discretion and in the context of actively managing your portfolio may manually open higher position sizes for hedging or other purposes.

ALGO FUND Client’s Rights and Obligations

Rights

  • Access to the trading account any time of Client’s preference and monitor the performance of trading strategies set under implementation into it.
  • Terminate immediately the reception of the Algo Fund service any time of Client’s preference by closing all trades performed by Algo Fund using the ‘Stop Auto-Trading’ button found on the website under Client’s account available at all times.
  • Selection of Client’s risk tolerance, as expressed by the acceptable maximum drawdown of the portfolio value, and automatic termination of the Algo Fund service reception when the particular limit is met.
  • Withdrawal/deposit new funds from/to the trading account any time of Client’s preference given that any withdrawal amount will not lower the account equity below the minimum required initial deposit In an opposite case, the Client should terminate first the service reception and afterwards proceed into such withdrawal.
  • Receive every month an account statement and reports giving information about portfolio value changes and performance fees calculations.

Obligations

  • Minimum initial deposit in the trading account of €10,000
  • Completion of suitability test through which the Client’s suitability to receive the Algo Fund service will be evaluated and Client’s risk profile will be determined.
  • Algo Fund service will be responsible to actively manage Client’s portfolio and closely monitor its performance and the Client will not have any rights to intervene into the trading account either to open new positions or close those opened automatically by the trading system used.
  • Monthly performance fees (30%) will be paid to the Algo Fund Manager as a percentage on the net profits generated each month in the trading account, after the subtraction of relevant transaction costs and any other commissions, and after they are offset with any transferred losses from previous months.

ALGO FUND Performance Statistics

Track records of the Algo Fund strategy implementation and performance are maintained by August 2015. Below present a summary of the monthly returns of the strategy until the end of 2017 as well as of the strategy’s total performance indicators:

Monthly Performance (Gross of performance fees)

2017
Jan 22.4%
Feb 2.0%
Mar 17.1%
Apr -0.8%
May 2.9%
Jun -1.5%
Jul -10.2%
Aug 0.4%
Sep 4.2%
Oct 9.8%
Nov -5.3%
Dec 2.1%
YTD 46.6%
2016
Jan 1.7%
Feb 1.5%
Mar 2.0%
Apr 7.9%
May 3.1%
Jun 7.7%
Jul 3.5%
Aug 2.5%
Sep 0.3%
Oct -4.8%
Nov 5.3%
Dec 16.3%
YTD 56.8%
2015
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep 17.8%
Oct 17.0%
Nov -1.5%
Dec 19.9%
YTD 53.2%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2017 22.4% 2.0% 17.1% -0.8% 2.9% -1.5% -10.2% 0.4% 4.2% 9.8% -5.3% 2.1% 46.6%
2016 1.7% 1.5% 2.0% 7.9% 3.1% 7.7% 3.5% 2.5% 0.3% -4.8% 5.3% 16.3% 56.8%
2015 17.8% 17.0% -1.5% 19.9% 53.2%
Total Performance Indicators
Return on Investment (Annualized) Return Volatility (Annualized)
54.65% 23.90%
Return on Investment (Annualized) Profit Factor
54.65% 1.74
Return on Investment (Annualized) Success Rate
54.65% 73.59%
Return on Investment (Annualized) Max Drawdown
54.65% 21.5%
Return on Investment (Annualized) Sharpe Ratio
54.65% 2.29
Return on Investment (Annualized) Sortino Ratio
54.65% 0.23
Return on Investment (Annualized) Omega Ratio
54.65% 1.57
Return on Investment (Annualized) 54.65%
Return Volatility (Annualized) 23.90%
Profit Factor 1.74
Success Rate 73.59%
Max Drawdown 21.5%
Sharpe Ratio 2.29
Sortino Ratio 0.23
Omega Ratio 1.57

Disclaimer: Past performance is not indicative of future performance and you should not base your decision to invest solely upon past performance information. There is no guarantee the trading system will generate positive returns or preserve your initial investment and you must be prepared for the possibility that you could lose significant portion or even all of your initial investment.

ALGO FUND Registration Instructions

In order to open an Algo Fund account please follow the below steps:

  • Click on the ‘’open live account’’ button from the BWM Exchange website.
  • At the first registration step, among others, you will be called to select a type of account. It’s very important to select the Algo Fund account type, which is the last choice in the relevant field, otherwise a regular trading account will be opened.
  • Complete the four registration steps and in case you are considered suitable to receive the service you will be allocated into a risk category and an Algo Fund account will be opened in your name.
  • Fund your account with a minimum €10,000 by login your account at BWM Exchange website and click on the ‘’Deposit Fund’’ button.
  • After the completion of above steps and upon the approval of your account, the Algo Fund trading system will be activated into it and you will be notified accordingly.
  • Download the MT4 trading platform from your account at BWM Exchange website and login this platform, at any time, in order to monitor the performance of your portfolio in real time.
  • Terminate the Algo Fund service reception, at any time, upon your sole discretion, by login your account at BWM Exchange website and click on the ‘’stop auto-trading’’ button.

If you have any questions or require training, please do not hesitate to contact us at algofund@bwm.exchange.

Hide Risk Warning
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read LFS’s Risk Disclosure Statement.