We feel that risk management is by far the most important aspect of our approach to the EUR/USD market. Modern investment theory is based on the premise that there is a direct relationship between the level of risk assumed and the level of return that can be expected in an investment program.
In general, higher risk is supposedly associated with higher returns.
While our goal is to maximize returns, we feel it does not need to come with an added level of risk which would compromise the systems capital preservation approach and would also increase the frequency and size of the systems drawdowns.
In general, the objective of the Euro FX Trader system can be summed up in two main points:
- Decrease the size and frequency of drawdowns
- Retain past returns
By focusing on these two objectives the natural byproduct of the system is increased performance and consistent results which is something that every portfolio needs.
