New investment opportunity – Invest in EUR/USD and get an absolute return

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Invest in EUR/USD together with Tom Bak

We are offering a brand new investment opportunity for investors who want exposure in the liquid counter trend EUR/USD market. This unique investment strategy has already proven itself by delivering strong performance. It is based on the principle of giving an absolute return, regardless of the direction of the market. We provide this service on fair terms and conditions with no management fee or administration costs. The success fee is 10%. Please read below for more information about the strategy and the investor behind it, plus performance, risk, advantages and drawbacks.

Behind the investor Tom Bak

Tom Bak is 52 years old and lives in Denmark. He has 20 experience working in in economy and finance. Previously CEO at Contex A/S, he is currently the CFO at a company in Denmark which provide power supply.

Tom Bak has invested €38.500 in the strategy.

Margined currency trading is one of the riskiest forms of investments available on the financial markets and is only suitable for certain individuals and institutions. No representation is being made that any account will or is likely to achieve profits or losses, and NPforex.com, CFH Markets Ltd and any of their group companies assume no liability to the accurateness of the information herein.

The idea behind Tom Bak’s investment strategy

The idea was to develop an investment strategy based on an automated trading methodology which can execute transactions based on rigorous analysis. The strategy consists of a number of fast daily transactions, offering many profit-taking opportunities with a reduced risk of loss.

Our experience from working in investment shows us that the human factor has an impact on any investment strategy, which make it less certain than if a program make the transactions for us.

The strategy is developed as an algorithm, which means there is no manual human involvement. It means when the strategy either buys or sells in the counter trend market it happens very fast and generates the best margin.

One of the main principles behind the strategy is the capital markets anatomy – 60/30/10. This states that for 60 % of the time the market moves in a counter-trend sideways direction but with many conflicting trends. It is typically closed in a pure trend. For 30% of the time the market moves in a clear trend. For 10% of the time it moves in a break-out direction, which means the market makes a sudden small tug followed by a sideways move within a narrower band. Please see the illustration on the graph.

The Investment Strategy

Investor Tom Bak’s strategy is executed within the counter trend EUR/USD market to obtain a high level of liquidity and low spreads.

You buy and sell when certain trading signals occur; the foundation is controlled by RSI.

A trailing stop is used to allow you to let profits run while cutting losses at the same time.

As with any investment strategy there are pros and cons. Ultimately it is the investor who will need to decide whether the investment is reasonable based on risk and return expectations.

One of the advantages of the trading system is that it is 100% mechanical without any human interference. It eliminates the feelings humans are affected by. We are motivated by fear and greed when trading, but with a mechanically system these feelings are no longer an issue. An automated trading system means the strategy can be executed constantly during the opening hours of the market from Sunday 23 AM to Friday 23 AM. The management of the size of the current positions - ie ‘the lots’ - is continually adapted from the anytime standing equity. When trading the counterparty is unable to see the strategies stop loss or profit withdrawal levels.

As mentioned previously there are some disadvantages with the trading system. The strategy is developed so that gain of profit happens currently. Losses are unavoidable and may occur in large amounts, reducing the equity. The fully automated system is 100% online, which means demands on the user’s server and Internet connection are large, and the system does not tolerate any form of breakdown.

Tom Bak will continuously monitor and test all parameters of the strategy because an automated trading system cannot be expected to work at an optimum level over a long period of time. Any adjustments will be made to try and improve the overall rate of return and reduce risk. It is about increasing the ability to spot market trends and maximising the hit rate for investments.

Der gøres opmærksom på, at der i strategien kan benyttes gearede investeringer, hvilket indebærer en høj risiko for tab. Historiske afkast er ingen garanti for fremtidige gevinster.