Risk Management

Risk management is at the heart of PCL’s approach to asset management and trading. Long-term success can only be accomplished if risk — in all of its forms — is effectively managed. PCL manages risk through multiple strategies that include the structure of XT99 Diversified’s trading signals, position sizing, methods of diversification and asset allocation. This proprietary combination of methodologies provides a sound foundation for risk management and ultimately for the production of optimal returns. 

Trading Signals

XT99 Diversified was designed to profit from the anticipation of trends. Once a persistent trend is detected, a market position is taken until XT99 Diversified identifies a reversal or end of the market trend at which point XT99 Diversified exits the trade. This trend “anticipation” of the beginning and the ending of trends is the first line of XT99 Diversified’s risk management.

Market Diversification

The XT99 Diversified Risk Overlay determines how investments are distributed across more than 60 domestic and international futures markets. At any given time, XT99 Diversified participates in as many markets as are deemed tradable according to its proprietary methods. Market and asset class diversification reduces risk. Trading in the greatest number of markets possible offers the potential of increase yield via a larger event horizon.

Trading Pace Diversification

The XT99 Diversified algorithm trades over multiple time horizons, from short-term to mid- and long-term, thereby creating diversification via pace. Trades can last, on occasion, from a few days to sometimes as long as a year, depending on signals and trend movements. Some trades are placed based on a short trend, and if warranted, they are followed by intermediate trades. If the mid-term trend persists, long-term trades are executed.

Proprietary Asset Allocation

XT99 Diversified’s proprietary statistical algorithms dictate how investments are distributed across various asset classes as well as within each asset class, and thereby risk is further diversified.

Review Analysis

To ensure peak performance, XT99 Diversified’s portfolio, trading models and weightings are evaluated on a yearly basis. Since inception, this has been an integral program element. All elements are evaluated according to strict and objective rules. Proprietary statistical algorithms are employed in this process. Thus XT99 Diversified can benefit from or avoid the negative consequences of increases or drops in liquidity, volatility shifts and changes in economic and political influences.

“The goal of diversification is to reduce the risk in a portfolio. Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate.” Investorwords.com
 
THE RISK OF LOSS IN FUTURES TRADING IS SUBSTANTIAL AND IS NOT SUITABLE FOR EVERYONE.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.


 



Pardo Capital
Pardo Capital

THE RISK OF LOSS IN FUTURES TRADING IS SUBSTANTIAL AND IS NOT SUITABLE FOR EVERYONE.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.