Forex Managed Accounts

Saxo Fund Management

Saxo Fund Management The Saxo Fund Management Group has three operational levels:

Fund Management

Mr. Steen Jakobsen, Executive Director - Fund Management. Fund Management runs and initiates all risk and the Supervisory Board monitors whether the Fund trades according to its predefined strategy.

Mr. Steen Jakobsen, B.Sc. in Economics, born in 1964, has an extensive background in international banking including senior positions in Chase Manhatten, Swiss Bank Corp and UBS.

He brought his senior international experience in trading to Saxo Bank in August 2000 and designed the present model underlying Saxo Bank's Managed FX Fund.

Mr. Jan Vandendriessche, Director - Managed Assets Development, works on developing the Saxo Bank Fund offering including hosting Fund offerings from Partnered Asset Managers. He was educated at the State University of Antwerp (B) and London University (UK).

Research and Product Development
Mr Jeffrey Todd Lins, Director - Quantitative Analysis, works with financial and quantitative analysis, and project development for Saxo Bank's Managed Funds and research. He was educated at the University of Salzburg and Mozarteum, Hochshule für Musik in Salzburg, Austria and held a Graduate Fellowship at the Johns Hopkins University in the U.S.

 Saxo Trading Strategy

Fund Strategy

The Saxo Managed FX Fund is based on a strict model-based approach that effectively eliminates emotional input and is strictly driven by evaluating technical and market data and utilizing trend and pattern recognition. The Fund Manager is constantly developing and refining the trading model to improve the funds performance.

The fund is designed to be conservative and is based on two primary objectives:

• Preservation of Capital:
  
  The fund aims to achieve a stable return and to ensure the preservation of the fund's capital, rather than employing a more volatile strategy which may result in large fluctuations in the fund's performance.
  

• Stable Performance:
  
  Rather than seeking dramatic out-performance, the Fund Manager seeks stable growth through simple compounding so as to achieve long-term results. The capital preservation goal is partly achieved by trading only in the most liquid FX currency crosses (G12 currencies) to achieve solid returns without running unnecessary risks entailed in trading more volatile currency crosses.

The capital preservation goal is partly achieved by trading only in the most liquid FX currency crosses (G12 currencies) to achieve solid returns without running unnecessary risks entailed in trading more volatile currency crosses.

Base Currency

We offer Saxo Managed FX Fund in a number of base currencies for your convenience — exchanges between your accounts currency and the funds can be avoided if your account base currency is the same as that of fund.

• US Dollar (single, double and triple leveraged funds)

• Euro (single, double and triple leveraged funds)

Single, Double or Triple Leverage

Saxo funds are available with different exposure levels, offering gearing of the profits or losses to suit investors of differing risk tolerance.

The Saxo Managed FX Fund is also available with double and triple leverage, multiplying the profits or losses of the single leverage fund approximately twice and three times. Typically, as the full Net Asset Value (NAV) of the fund is available to the Fund Manager to reinvest, the impacts of greater exposure may be compounded over a series of returns. Over time, the NAV for the leveraged funds will not reflect the actual level of exposure.

The examples below show the effects of employing double and triple exposure to an initial investment in the fund of USD 100,000:

The Trading Model

Saxo Managed FX Fund's utilises a trend-following model with built-in pattern recognition. Whenever taking a position, the model also generates stop-loss levels with stop-entry levels.

Trading Signals

The trading model monitors 10 technical indicators simultaneously to determine whether there are any trading opportunities. The indicators include:

• MACD

• RSI

• Slow Stochastics

• Moving Averages

• Candlestick Charts

• Proprietary signals developed internally

A trading signal requires the agreement of at least seven of these indicators. Whenever a trading signal is triggered, stop entry and stop exit levels are automatically generated. To enhance returns even more, the model will increase leverage during strongly trending markets.

Evolution of the Model

Under certain conditions, Saxo Fund Manager can override the model. However, this only happens to protect the investor's profits and to achieve stable returns. Each such intervention is analysed so that investors can continue to expect the very best in Managed FX Funds from Saxo as this is an opportunity for the Fund Manager to adapt the trading model in line with the experience gained. The strategies used in Saxo's Managed FX Fund trading model provide investors with a sophisticated approach to Managed FX investments.

Exit Strategies

The model employs several trade exit strategies. The most difficult task is to find the appropriate stop-loss level that will enable profitable positions to run their course without jeopardising the ‘Conservation of Capital' principle of the fund. The initial stop level that is defined on trade entry is simply dictated by a level that would indicate a failure of the supposed trend on which the trade was based.

If a trend is confirmed by the price moving in the desired direction after trade entry, other exit strategies come into play:

• Using a 'faster' Moving Average to define the stop level, as this will tend to exit the trade on peaks and conserve more of the gains that have been made since trade entry.

• Using the well-known RSI, not in its traditional sense, but as a linear function. the assumption here is that if RSI is moving counter to the direction of the price, then the market is probably losing momentum, and the trade should be exited

• Exiting a position that is in profitable territory is simply to use the lowest price of the last five price ‘bars' (or periods) that have moved in the desired direction. This method is only applied in strongly trending markets.

• Applying common sense: Follow the system unless there are ad hoc events which make exiting the position appropriate.