Driven by the trading team’s focus on scouring the market for opportunities based on external drivers (data releases, announcements, technical analyses). Tying into the shorter-term nature of this approach, trading exposure is likely to have a tenure of minutes through to hours. Once a profit buffer has been established, the trading approach will switch towards the strategic trades.
Capitalising on macroeconomic setups, strategic trades taken will be during trending or volatile market conditions. Strategic trades are longer term in nature and could span over a couple of days and are easily liquidated. Such trades are important as they have the ability to significantly enhance the fund’s performance when deployed within a risk-controlled environment.