Cinneas Foreign Exchange LLC : Cinneas

Summary

Cinneas was formed by Michael Myrtetus and Douglas Borthwick following a combined 30 years of successful dealing in the foreign Exchange Markets. Michael was the Head of the FX Spot desk at Morgan Stanley, while DOuglas Headed the FX Forwards and NDF Desks.

Investment Strategy

The Advisor uses a refined system that combines fundamental and technical research and analysis to place trades. Thus the trading methodology is discretionary, which means each and every position is manually entered in an effort to reduce slippage and maintain risk management through a more personalized approach to position-sizing and trend recognition. Country analysis, economic news and global events are key in forming a fundamental decision. At the same time, banks, institutions, and traders depend heavily on technical analysis in their decision making process. Subsequently, key levels of support and resistance as well as other technical indicators are often well-respected in determining market movements. The Advisor seeks to follow trends in the liquid foreign exchange markets. Positions are suggested by a back-tested model strategy, and the Advisor’s discretion dictates whether the position is entered into. The Advisor seeks to capitalize on trends in the market place, and seeks to reduce “troughs” by also trading intraday to capture profits. A number of technical factors have to be in place for the Advisor to feel comfortable with a trade and its direction. These technical factors include and are not limited to moving averages and Stochastics. A stochastic process is one whose behavior is non-deterministic in that a system's subsequent state is determined both by the process' predictable actions and by a random element. Stochastic crafts are complex systems whose practitioners, even if complete experts, acknowledge that outcomes result from both known and unknown causes. Such examples are warfare, meteorology, and rhetoric, where success and failure are so difficult to predict that explicit allowances are made for uncertainty. The Advisor has limited the number of currencies that are traded so that the Advisor attempts to optimize the trending tendencies of these markets and therefore, attempts to maximize liquidity. It is important to note that under this program, when trading during choppy markets, such trend trading can lead to large losses. At the same time, it’s important to note that the Advisor will need to ride these choppy markets as one needs to be invested to capture the moves. We believe that our strategy should offer better returns in the trending markets and lesser returns in sideways markets. It is expected that the majors or the G7 currencies will be most heavily traded, thus a concentration will be in the American, European, and Asian markets. Emerging markets such as the BRIC (Brazil, Russia, India, and China) countries may be considered when favorable opportunities exist.

Risk Management

While Cinneas looks to take advantage of momentum, we also need to acknowledge that if momentum is unable to continue, then the trade is over. For that reason the advisor now stops out of non performing trades once the price action dictates