The Fox Logix System Philosophy

Many trading systems can be characterized as mathematical rule based approaches to trade selection and risk management. Trading Systems have been around for as long as organized trading. Over the years the concept of "system trading" has become a prominent fixture in the broader retail markets. Today, "system trading" has come to mean different things to different people. Reference is often made to "black box," "gray box," and "white box" systems. Historically, black box refers to pure quantitative software systems with no human interaction. "Gray box" systems involve some human intervention (primarily risk adjustment) and "white box" systems are typically sets of indicators and/or algorithms that are constantly reviewed for current market conditions. The corollary to systems trading is that all systems work …. until they don't.

So which system is best for you?

The quick answer to "which system is best?" is the one that makes money. Typically all systems will make some money and will loose some money so the quick answer's logic is not complete. At Fox our philosophy is to manage systems for our clients that incorporate aspects of quantitative and discretionary trading with a real time appreciation of market dynamics. We do not suggest or recommend "optimized" back tested systems in order to give a perfect view. Rather, we expose the approach for each system to the daily ebb and flow of the market where decisions are made on risk management based on what the market does, not on what one hopes the market will do. Neither the market nor managing risk inherent in a position are static.

Leverage and Results

Many system results are posted as "hypothetical" because the results for closed signals are shown as one lot trades based on the signals. Signals should occur in real time and be executed in real time. Client may trade different quantities of multiple lots on multiple accounts comprised of varying equity levels. The mathematics of risk management for position size is decided upon between the client and our Forex Specialists as the account either grows or suffers losses. Leverage and risk exposure are dynamic and the results posted reflect minimum margin leverage.