Dear Michael, Hope this meets you well. I’ve been a fan of your work for a couple years now and definitely credit your first book for much of my success today (went from struggling prop trader to currently running a registered corporate advisory firm at age 27). Just seen your response to one of your readers about focusing on FX, sorry but I disagree with you on this one, fair enough your response makes sense to a certain extent but it’s worth doing a bit more research and looking at the available data in terms of monthly and annual returns before concluding since there is ample evidence to suggest that trading only FX can be equally important as having a traditional CTA in a typical equity/bond portfolio. You already interviewed Chris Cruden who focuses on FX, besides Chris, there are numerous firms focusing on FX managing several billions. If you need help finding such firms, please do not hesitate to give me a shout. However, going forward as a company I hope to introduce the typical managed futures product to our clients in the future only because it offers a different return profile to what we currently achieve at the moment trading FX only but not to necessarily replace what we do. It is definitely possible to trade only FX using trend following strategies by diversifying across several regions which are uncorrelated just as you would in your typical CTA, make no use of leverage and still achieve some decent risk adjusted returns. Just thought I’d add my two cents in. Take care and keep up the good work.
Chris is the successful exception not the rule. You need diversification as a trend following trader. You are not just disagreeing with me – as you know. You are welcome to send me the track records of the FX only trend following firms.