McLaren FX

TRADE STRATEGY AND METHODOLOGY

The McLaren FX system is a conservative & robust triple method diversified strategy designed to provide consistent monthly gains with a relatively low intra month drawdown. Great consideration was given into making this system “comfortable” to use for the majority of investors. In September 2011 a new module was implemented into the strategy, further diversifying it, and adding in various safety check points. This upgrade has both increased performance and reduced the downside significantly. The core strategies do not trade on many major news days or any Friday, although some of the sub-strategies do, as they do well in the volatility.

The underlying core strategy typically does not hold pending orders over the weekend and prefers not to carry trades over the weekend whenever possible although this does happen from time to time with trades made late Thursday evening or early day trades which may occasionally trigger on Fridays. Major changes in trend direction or strength and unusually large or unusually small recent price movement will also prevent trading.

The majority of trades are taken on one and four hour charts in the direction of the longer term trends. Trade setups for the core strategy occur during a pause or retrace in price action. If market conditions warrant, the system may place a time expiring stop order when a valid setup is detected. If the market moves in our favour, the stop order is triggered and the system enters a trade. All orders are placed with hard fixed stop loss and take profit levels. Stop and take profit levels are determined by recent market movement.

Quite often the core strategy's trades are moved to “free trade” status (the stop loss is moved to breakeven + 1-2 pips) at an early stage and a multi method trailing stop is used. The trade is then free to work until either reaching take profit or stop loss, or market conditions dictate closing the trade.

The complimentary sub-strategies added in Sept 2011 include a scalping strategy, a breakout strategy, and a volumetric based strategy which focuses primarily on AUDCAD and EURCAD. These have been integrated carefully alongside the core strategy and work to cover a wider range of market movements to maximize profitable trading setups and balance market exposure.

PERFORMANCE

The return that the MFX system aims to achieve is always an “absolute return”, meaning there is no benchmark to be expected. The objective when trading the MFX system is to simply maximize returns within certain risk parameters. The McLaren FX trading team targets above industry average returns. To achieve these goals, it is possible that this system may occasionally suffer from sizeable drawdowns.

NOTE: Performance in the table below is represented in percent (%) and displays the gross monthly return. All months depicted below were traded with live money (not demo, or hypothetical or back test or forward test). The various other colours and breaks represent changes in brokerages being used.

Yellow cells = SPFX Brokerage
Orange cells = Inv Brokerage
Green cells = OFM Brokerage (our current brokerage)

** A new strategy was implemented to the McLaren FX system as of September 2011. The system has been further diversified, and further protection added to keep max drawdowns under the 15% mark per month. Should this mark be hit, we cease trading the strategy for the month and resume on the following month.

2009 2010 2011 2012

Month Return Month Return Month Return Month Return

Jan-09 n/a Jan-10 4.30% Jan-11 -0.17% Jan-12 3.18%

Feb-09 n/a Feb-10 2.33% Feb-11 0.97% Feb-12

Mar-09 n/a Mar-10 6.75% Mar-11 10.05% Mar-12

Apr-09 n/a Apr-10 2.99% Apr-11 13.39% Apr-12

May-09 9.43% May-10 21.07% May-11 -12.06% May-12

Jun-09 30.46% Jun-10 9.65% Jun-11 -18.86% Jun-12

Jul-09 28.02% Jul-10 0.14% Jul-11 2.68% Jul-12

Aug-09 26.94% Aug-10 7.35% Aug-11 -2.70% Aug-12

Sep-09 7.83% Sep-10 1.37% Sep-11 0.12% Sep-12

Oct-09 11.94% Oct-10 28.55% Oct-11 19.40% Oct-12

Nov-09 29.39% Nov-10 -0.35% Nov-11 5.21% Nov-12

Dec-09 7.78% Dec-10 0.20% Dec-11 18.89% Dec-12

Total Compounded Return Since Inception: 1077.19%

Average Monthly Return Since Inception 8.37%

Example Cumulative Return By Monthly Balance (based on a 100K account)

Please send us an email via our contacts page for further information.

www.cayoflow.com © 2009 | Privacy Policy | Terms Of Use | Risk Disclaimer

RISK DISCLOSURE: Alternative Investments carry a high degree of risk, and may not be suitable for all investors. Before deciding to participate in Alternative Investments you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Alternative Investments, and seek advice from an independent financial advisor if you have any doubts or concerns.