FOUNDATIONFOREX FOUNDATIONFOREX

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BUILDING POSITIONS WHEN NO-ONE IS LOOKING

RISK WARNING:

Forex and futures trading is one of the riskiest forms of investment available and may not be suitable for all investors. Past performance is not indicative of future return.

DISCLAIMER:

Adam Landes is not an investment advisor, he is not registered with any regulatory body, and he does not manage funds for the public. Moreover, none of the content of this website is a solicitation for investment.

MANAGER

My name is Adam Landes and I am the portfolio manager at foundationforex.

 

After some 20 years as a finance professional, I semi-retired in 2008 at the age of 42.

 

I now make a living from my investments and from trading the forex and futures markets, with my own capital and client funds.

 

I work out of home offices in Mallorca and London.

View Adam Landes's profile on LinkedIn

MULTI-STRATEGY

I trade a variety of strategies, ranging from fully automated ones to others with automated elements combined with a discretionary overlay.

 

The CORE strategy largely automates the set-ups that I would ordinarily trade on a discretionary basis, most of which are swing trades (ranging from intra-day to monthly). In order to trade, I aim to answer the "what, where, when" proposition, meaning what price action I can identify, where this happens within price structure, and when it happens, all of which I have found to be of equal importance. On the whole, the CORE strategy performs best when trends are entrenched and then extend, because the various time-frame set-ups can compound gains, or hedge positions intermittently. The strategy trades fairly often, and relies on a high win ratio due to conservative, yet excruciatingly back-tested, trade management, de-risking positions as soon as practical. The CORE strategy trades four majors (EURUSD, GBPUSD, AUDUSD, and EURJPY) on an automated basis, with a discretionary overlay, often to hedge any correlated risk-on or risk-off exposure over the short term. Alternative pairs may be used for this purpose, depending on the beta required, including, but not limited to, USDJPY, USDCHF, GBPJPY, EURCAD, EURAUD, USDZAR and USDMXN. Depending on the established system exposure, discretionary intra-day or multi-day swing positions might be taken. The CORE strategy (and associated client Percent Allocation Management Module, or PAMM) has traded since 01/11/2012. 

 

The AGG EURUSD strategy is, predictably, an aggressive version of the CORE algorithm which exclusively trades EURUSD, and on a fully-automated basis. On the whole, it uses higher per-trade risk levels for all the set-ups, and a somewhat different weighting for each of them. AGG EURUSD has high long-term reward expectancy, albeit accompanied by significant volatility. Therefore, it is only suited for smaller at-risk capital balances. The AGG EURUSD strategy is my "set and forget" formula for long-term capital gains. The AGG EURUSD strategy has traded since 01/01/2013, while the AGG EURUSD-focused client PAMM has been active since 18/06/2013. 

 

The CASSANDRA strategy is a niche fully automated implementation of a third-party algorithm developed by David Turton, from www.fibarchie.com, with the desired return/volatility expectancy defined by the manager. CASSANDRA trades the squeeZebox, with support from the Firing Range, seeking to join energetic breakouts from consolidation zones characterised by narrowing ranges and volatility compression. The CASSANDRA strategy is simple, using price pattern recognition to identify repeatable trade set-ups. These are then evaluated for reward-to-risk, and if this is attractive enough, and the trade direction matches the underlying trend, a trade will be taken. It is important to note that most of the set-ups that are identified are then dismissed. While CASSANDRA is a loaded gun, it is used very infrequently, ie it is designed to trade guerrilla style. The strategy trades ten forex pairs (EURUSD, GBPUSD, USDCHF, AUDUSD, AUDJPY, NZDJPY, CADJPY, USDJPY, GBPJPY, and GBPAUD). The system does not trade often, but it does achieve a good win ratio. Combined with aggressive trade management, high profit factors are the norm, resulting in excellent risk-adjusted returns overall. CASSANDRA is robust under varied market conditions, but excels with high volatility. The CASSANDRA strategy has traded live since 19/03/2013, while the CASSANDRA-focused client PAMM has been active since 01/05/2013. 

 

The PLOUTUS strategy is also the result of my collaboration with David Turton. Live forward testing has now begun for PLOUTUS, which trades the squeeZebox for GOLD, SILVER, CRUDE and COPPER, ie, a "precious metals" and "commodity" basket. The PLOUTUS strategy has traded live since 20/08/2013. The ultimate trading platform selection process is yet to be completed, but I hope to start managing a PLOUTUS-focused PAMM with my own and client funds in the coming months. 

 

The LIBRA strategy is also the result of my collaboration with David Turton. LIBRA will trade the squeeZebox for GOLD (=precious metals), COPPER (=base metals), CRUDE (=energy), S&P500 (=equities), TREASURY NOTE (=bonds), and AUDJPY (=carry), ie, a "risk-parity" basket. The final volatility and return expectancy for LIBRA are still works in progress, but when ready, I plan to proceed with live forward testing.

 

I am always keen to hear from developers who are in need of seed capital to forward test their algorithms and/or strategies. Through my collaboration with David Turton, I am also in a position to potentially offer technical assistance to help turn immature strategies into robust investment products that could pass an institutional screening process. Please do not hesitate to get in touch if you feel that I can help with this, but also be prepared for me to say no.

 

SYSTEMS

Live trading for the feeder automated accounts takes place on a variety of MT4 platforms, all verified via myfxbook.com

 

These feeder accounts host the EAs (Expert Advisors) coded either by the manager or its technology partners.  

 

For the forex-focused products, these feeder accounts are bridged to the Dukascopy JForex platform from which the collective funds are traded. Similarly robust "bridge" solutions are available for other platforms more suitable to trade futures or CFDs, and a selection process is ongoing for these. 

 

All the various system elements for each strategy reside on dedicated high-end cloud servers, ensuring negligible downtime.

CLIENT MONIES

I only accept mandates from finance and non-finance "professional" qualified investors who are known to me. In these instances, I can evaluate the suitability of this type of investment in context, ie, in light of their broader portfolio of financial assets and their investment goals.


All monies are segregated into individual accounts, and held at Dukascopy Bank in Switzerland. Clients have total control over their funds, the management mandate, and account-wide stop-loss levels. I only trade client funds under limited power of attorney.

 

The combined manager and investor pool is traded via a single JForex platform and equity allocations occur automatically via a Percent Allocation Management Module (PAMM) back-end during the scheduled daily settlement process.

 

Clients have live access to their individual accounts and additionally receive daily performance reports. The performance of all the automated trades is reported via Twitter (@foundationforex). Performance of the feeder accounts running the Expert Advisors (the automated trading algorithms) is tracked, and verified by myfxbook.com. Where appropriate, any contribution from discretionary trading, whether positive or negative, is incorporated into the daily equity position reports generated from the PAMM accounts.

FEES

Fees can vary by strategy and client. Although the limited power of attorney for each PAMM governs base fees, these can be discounted. Standard fee levels are: 

  • a management fee of 1.0% per annum, charged upfront on a pro-rata time basis. 
  • a performance fee of 20%, subject to high water-mark (ie, it is only payable when client equity, net of any management and performance fees, has increased over and above any prior peak level, adjusted for any deposits or withdrawals), charged monthly if due. 

The manager reserves the right to alter these fees. Any such alteration would require client consent. 

 

No volume commission rebates are received by the manager, ie, the manager trades when the set-up is right, not to generate commission. 

 

Dukascopy Bank collects fees automatically. When selected, any alternative money manager trading platform for the futures products must be able to do likewise. 

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