WHY DOES NEXUS MAKES SENSE FROM AN INVESTMENT POINT OF VIEW:
A long-term strategy means that positions will be open for longer periods of time, taking advantage of larger trends and opportunities in the currency markets. Riding larger price movements at the same time an obsessive risk control is in place, sets the strategy to maximize benefit from interesting market opportunities, without exposing the portfolio to excessive risk.
Please see above how large was the maximum drawdown ever experienced in the portfolio, or visit the bottom of the page for more granular information.
An almost obsessive risk control allied with an approach of regular portfolio reviews aims for long term-profitable survival. Sure, there will be periods of stagnation and even some rather prolonged drawdowns and that’s normal. Our vision is that NEXUS offers an unmatched performance in terms of risk vs return.
Finally, NEXUS offers a unique optionality to customers. To start there’s not many FX portfolios that focus mainly on long-term trading and even less with the same approach with which NEXUS is managed. It makes sense to subscribe NEXUS from a strictly investment diversification point of view.
WHY DOES NEXUS MAKES SENSE FROM A BROKER ROBUSTNESS POINT OF VIEW:
Unlike portfolios based on short-term strategies, the behavior of NEXUS is expected to be much more robust with different brokers, since the trades that compose the core of the expected returns are designed to capture longer term/higher return trends.
Therefore, effects of smaller importance, such as spread, commission or slippage, which only occur once or twice per trade, are expected to alter the portfolio’s returns only in a marginal fashion.
This is why, regarding spread, commission or slippage – assuming they remain within normal ranges – different brokers should not result in a very different performance in comparison with our Master NEXUS account.
WHY DOES NEXUS MAKES SENSE FROM A STRATEGY ROBUSTNESS POINT OF VIEW:
Novice traders might also be interested to learn that a good sign of the robustness of a strategy is the coherence between the profits that the strategy is able to capture from the market and how this corresponds to points or “pips” gained over time. Please check the figures and charts in the next section to verify that, month after month, there’s a very strong coherence between positive returns in account equity terms and positive returns in terms of points/pips obtained from the market. A r ed strong warning flag should always be raised when a positive money result track record doesn’t meet also a positive pip track record. Several causes can cause this type of divergence. One of the most common is what is called “martingale trading”, where new and larger positions are added to an already losing position hoping for a market reversal and seeking a way out of a bad trade setup. So instead of a trade being closed at the right time by following sound trade rules, the trade was maintained with increasing lot size and hence risk. NEXUS does NOT use martingale.
NEXUS also does NOT use what is known as “grid trading”, which is a similar approach to martingale, but where new positions, opened with the objective to recover what was a bad trading setup from the beginning, have the same size of the initial position. Grid trading can eventually be a less risky strategy than pure martingale, but still encapsulates what is one of the most common flaws of simpler trading strategies, which is the approach to “add to losing positions” and thus increase risk immensely, hoping for a market reversal, instead of closing what is a bad trade setup early in time.
Although NEXUS does NOT use martingale or grid, NEXUS can apply, in certain conditions, what are called “scale-in” trades. These are trades to reinforce or add to an initial position, depending on the way the market has developed since the initial trade was opened. The “scale-in” trades can be used to reinforce what is already a good trade setup, or to compensate a trade that, although still appearing good, has been revealed not to have been opened at the optimal entry point.
The points above are not insignificant at all, as this is one of the main reasons why signal services often fail. NEXUS is immune to those risks.
WHY DOES NEXUS MAKES SENSE FROM ACTIVE MANAGEMENT POINT OF VIEW:
Lastly, maybe one of the most distinctive aspects of NEXUS relies on the effort placed to balance the portfolio to achieve the best possible setup in terms of long term expected return with lowest possible short-term risk. This is done by taking advantage of the diversified nature of the portfolio and the possibility to remove or add sub-strategies that are adapted to market conditions. Quarterly, the settings, weights and composition of the portfolio are adjusted in order to diversify risk and to continue to provide the best long-term prospects possible, but with a risk exposure (measured in terms of drawdown) within strategy targets. The re-balancing of the portfolio aims to give both peace of mind to investors and the ability to recover, within a reasonable amount of time, for investors who, by coincidence, enter the subscription at a local equity high. The quarterly assessment is performed using in-house analytics and contrasting results of the portfolio with expectations from extensive back-testing and long-term historical limits.
SOME POINTS TO WATCH OUT
WATCH YOUR SWAPS:
As positions might remain open for longs periods, swap costs might mount up over time. True, some brokers offer positive swaps for some instruments either for the long or short side of the trades. However, considering both the short and long sides, the net value of the swap cost will usually be negative. How negative, depends not only on Central Banks interest rate policies, but also on the specific commercial conditions the brokers themselves apply to their customers. Therefore, before you choose your broker to host your NEXUS client account, we recommend to include in your due diligence investigation to select your broker, the element of swap costs. The general rule, regarding swaps, is that brokers with lower swap costs (considering both possible sides of the trade, long/short and also all the currencies traded at NEXUS) are better to host your NEXUS client account. Naturally, all the other aspects you consider relevant when selecting a reliable and credible broker should also govern your selection.
To assess the swap situation, it’s important to know which instruments the strategy trades. NEXUS can vary the traded instruments over time, so the best option is to visit the NEXUS MyFxBook page (find direct link at the bottom of the page – click on the graph) and in there use one of the several possible tools or views, to learn about which financial instruments have been recently traded by NEXUS. If you have any questions, don’t hesitate to contact us.
COMMIT ENOUGH CAPITAL:
As a general rule of thumb we recommend that customers warrant a minimum balance of 7,500 USD in their MT4 brokerage account hosting the Odysseia Capital trading engine. This amount will increase the probability for customers to enjoy enough profitability to justify the subscription of the service. As an absolute minimum, customers should maintain no less than 5,000 USD of balance in their brokerage account. We refer this to be the minimum, as lower balances will have the potential to increase account risk and drawdowns beyond our foreseen limits, at the same time, profits might not be large enough to justify the subscription fee.
DO YOUR DUE DILIGENCE:
Lastly, as always, any prospective customer is strongly recommended to assure his/her own due diligence when engaging in any of Odysseia Capital’s services, take notice of the respective Terms and Conditions (here) and be sure that the service to subscribe fits the customer own objectives and tolerance to risk.