I am very fortunate to have one who is also in the field of commodity trade since 1980, colleagues. This is what every marketer needs. A mentor. . Human experience … Charles Maley is the case. Charles, when it begins operation in 1980, he joined PaineWebber Curtis Jackson, Carlos 29, the company's experience in this field. He was immediately following the introduction of mechanical trading systems to quantify the direction of Jack Schwaben, the then head of research. Martin and Carlos have continued his research until he came to Oppenheimer / Canadian Imperial Bank of Commerce in 1983. Charles spent 10 years in the trade and marketing until Oppenheimer, C0 semi-managed bank Julius Baer in New York derivatives desk. He then joined Angus Jackson and Martin Bedick reunion in 1998. His vast experience in negotiations and the long-standing trade procedures and methods used by Angus Jackson's force. The focus is to continue to study Charles Angus Jackson and growth.

Let me share a recent interview with Carlos, the traders of the world. Carlos knows how to be successful in commodity trade. Reading and learning what is really needed is a successful commodity trading.

What is your Angus Jackson's position, How often do you work there?

Bedick Martin, the principal director Angus Jackson, encouraged me to participate in the company in December 1998. The idea behind the growth of trade and mechanical systems and sound financial management concepts Angus Jackson. My position today would be better described as the work of individuals and corporate clients, helping commodity trade, provides a comprehensive business plan.

How long have you been using the mechanical system?

Martin and I began to join Paine Webber, 25 years ago, the study director Jack Schwaben. Jack and naming standards mechanical systems Strom a man was used to trade in the product Paine Webber in 1981. Is not only introduced me to the use of mechanical systems, but at the time, this is one of the few there is a mechanical trading funds.

What is the good, bad use of the mechanical system?

There is an overwhelming information, today and traders need an organization such information. A mechanical approach to define the specific conditions of the current opportunities and specific conditions, failure opportunities. Mark Douglas in his book Discipline traders said that the mechanical systems mathematics to define and quantify the relationship between the past and provide a possible outcome.

In addition, the mechanical system can lure you into a false sense of security. In the past, the quantitative relationship to a successful project not the same as the statistics to quantify the future. In the real world of action, due to the limitations of the test back, at best, the statistical probability of achieving your similarities. If your program is not active in the leadership of the exhibition management is the trouble. To stay discipline and the real world system, have endangered the disaster recipe.

What is your system and your customers?

Angus Jackson is all the trend advocated the system. Our work, systems development and programming a small number of staff who is a good relationship over the years. Our approach is to consult with customers on existing funds and the expected risk / reward, and then guide them to the appropriate model. We mainly use the model, trading systems and risk management over a variety of strategies.

What is your favorite system, and why? In your opinion, what is the best use?

Not necessarily the most liked, but we have a desirable approach. Similarly, Angus Jackson, the company's next major trend. However, there are some significant changes in commodity markets. When I was at the beginning of the taxation experts, business management of assets not less than 10 billion dollars. In 2002 about 40 billion U.S. dollars. In the past three or four years has risen by nearly $ 1.5 million. This prompted us to rethink the traditional bias is as follows. Now, we think it is more in line to catch up with the trend, because they are faster and shorter duration. We tried to capture the movement, rather than he went. Multiple systems through the use of this, to get more aggressive.

Can you explain how to use from the beginning to the end of their favorite client systems.

First, we found a package of more than 65 systematic trend + market. We are constantly monitoring market liquidity and does not want any operator to market, liquidity is poor. Because of our industry, ability to generate returns between the screening, then an acceptable risk selection is the best investment portfolio for a large number of industries. This is a well-off society in an attempt to participate in a diversified account that some of the advantages. We tried to maintain the leverage and volatility, though, we have a lot of market opportunities.

How to manage money?

All the signals generated by the system must pass risk and capital management filters. This makes the program check the account before choosing the route of risk. Each transaction must meet certain standards to ensure that no negative impact on trade items.

In addition, the program also monitor the risk that they will agree in every combination of a number of market segments. Market composition of each group are highly relevant to the protection of over-exposure to a department. Finally, the program runs the account total control over exposure in the risk of all open contracts. This prevents a random event, which will bring about destruction of capital.

Whether to do anything to improve the system use? We do not try to improve the system, but used a common sense approach to management. When an operator has a computer program can only be reported on schedule. Trade restrictions in the real world to find any test to recover. We call on the back test "One-Eyed King", because in the real world, there is the opportunity to play a stronger role than to take care of that. Ignored the role of randomness allows us to think we have to quantify the future. Therefore, we spent a lot of time, the amount of good things, the computer can not tell we look at.

What is the implementation of the sign, the difference is the way to go, and their mechanical systems of the public.

Our signals are processed through our merchant has extensive experience in the domestic factories. I make it clear that much more moving and how it affect performance adversely affected. In addition, because the amount of commercial contracts, we have established the relationship between floor traders, arbitration lines, desks and other imaging to improve our global execution and risk control.

In your opinion, what proportion of the available funds be used for commercial mechanical systems?

The money currently mechanical systems, it is impossible to know the percentage. Barclays close to 150 billion, according to consultant management of trade goods. My guess is that a considerable portion of them to use, mechanical models, alone or with certain decisions. However, there are some 68 commodity-oriented hedge funds, according to Daily News letter to the wealth of hedge funds to disclose very little about its technology or position information. In addition, a large number of commodity-linked together, may or may not be the form of mechanical trading derivatives products.

As the business person, as long as you can tell me why some succeed, some do not deal?

I think that the failure of a successful trading account to escape some of the important things. Does not seem to matter whether or not appropriate trading systems, seem to know that the market is the boss. They are defensive in nature, there is a high risk of respect. The purpose is to manage all the risks and rewards, so take care of themselves. Most of these flaws are completely focused on the reward, usually at the expense of risk.

The expected return of investors to share the success of another similar attitude. Them, in most cases, I think the speculators in the hedge is to provide a risk premium. They also know that they have a right to it, only it is available. Second, that the rate of return linked to the cost of money. Finally, consider their work is a long-term process was not running beyond that they can handle, or the insolvency risk of the opportunity to reduce the risk to come back. Failures tend to believe that the current output is always 50 and 60% of the above. Unfortunately, awareness of how difficult it is to be more realistic survival. As a successful business for our customers suggestions? No, I can tell you wonderful readers. The reality is that trade is the most difficult ever will. Scheme-specific logic. Methods behind the logic is not of your choice. It is impossible to rely on past data to explain the logic is not. Then realistic expectations, understanding, you will find more obstacles than you can imagine. OK, the actual risk. Adams, just before the draw is a potential, rather than the risk of statistical guidelines. A real risk acceptance means that you know you can lose money. The good news is that this freedom should be allowed to now want to probability, rather than driven by emotions. Also ask for help. Smart people around him. With other operators or company alignment, it helps you to these concepts. .

Andrew Abrahamwww. myinvestorsplace. The COM

Futures and commodities trading involves significant risks. People can do business at a loss.

Tags: Angus Jackson, bank julius baer, C, canadian imperial bank, Carlos, Charles, Charles Angus Jackson, Charles Maley, Commodity, Jack, Jack Schwaben, Julius Baer, Mark Douglas, Martin, Martin Bedick, NEW YORK, Oppenheimer, Strom, Successful, System, Takes, Trade, Trading, U.S.