PAK Capital, LLC : PAK Capital Small Accounts Program

Summary

The PAK Capital Small Accounts Program trades exchange-traded E-mini and E-micro currency futures contracts - primarily the US Dollar against the Euro Currency, British Pound, Japanese Yen, Swiss Franc, Canadian Dollar and Australian Dollar.

Investment Strategy

A combination of technical and fundamental analysis is utilized to pinpoint trade opportunities. The technical component of the Program is a modified version of the Richard Dennis “Turtle” system. System. Fundamental factors include macroeconomics, financial and geopolitical events and other external factors that affect market prices. Trading is directional and concentrates on clearly-defined opportunity sets as and when they emerge. Each currency is evaluated on price action, timing parameters, strength/weakness and other information. Trade initiation relies on price breakout, pattern recognition and the Advisor’s experience in analyzing the relevant fundamental and technical facts affecting futures prices. Trade selection is discretionary. A number of systematic momentum strategies are employed. The Program is designed to maximize profits with trades of short and intermediate-term duration though frequently has a long-term positioning bias.. There are times when the Advisor’s trading program is fully positioned in the markets and times when it is not in the markets at all depending on assessment of the reward and risk ratio.

Risk Management

Effective risk management is a crucial aspect of the Program and the Advisor has set of defined risk parameters. Predetermined stop loss points are calculated for each trade based on market volatility and other factors. Stops are placed upon entry, and trailing stops are used to protect profits. The money management system determines and limits the amount of equity committed to each trade, as well as to each currency and group of currencies. Preservation of equity for client accounts during unfavorable markets is key to the success of its program.