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Dighton Balanced

Dighton Balanced

The Dighton Balanced Portfolio (Dighton Balanced) is a discretionary CTA, which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The strategy is developed by Mr. A. Moisseev, who is trading Futures since 1992. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), and volume and time cycles. The Fund manager trades on high conviction (about 9 out of 10 trading ideas get rejected). The fund aims to achieve +20% annualized performance with a volatility target of 15%.

Investment Process

The fund manager seeks out market irrationalities and under- or overvalued markets. These situations offer excellent opportunities for our strategy, whereby market psychology is an important component in the trading decision making process. When a market shows the relevant particularities, we await for the right entry point indicator: important news or a technical signal. The trade is only entered if all conditions, set out in the fund manager framework, are met. The fund manager trades on high conviction therefore the portfolio is rather concentrated. The strategy has a contrarian component and typically a position will be increased if and when the markets initially go against us.

In the long term, Global Macro style trades are at times complimented with short-term, more technical trades. This approach results in a high degree of inverse correlation to CTA indices.

The Dighton Balanced trades liquid US future markets, including commodities, stock indices, interest rates and currencies. By having a broad investment universe, the fund manager has the flexibility to identify trades with optimal risk/return potential. Furthermore, the opportunistic investment approach is designed to perform in any market condition.

The Fund managers’ style is characterized by its meticulous selection process. This results in a limited amount of high conviction trades; the profitability ratio is 8 winning trades out of 10.

Risk Management

The Fund developed an in-house approach to manage risk; upon entry of the trade, the fund manager has a trading plan, which pre-defines the optimal exit points using technical analysis, time frames, volume and liquidity. For every trade, the fund manager defines a stop loss which is always smaller than the potential gain associated.

In order to satisfy different investor’s risk / reward appetite, the trading program is offered in two leverages, with altered margin to equity restrictions. Please see: Dighton ASP


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