The trader of the Mahogany Forex Fund uses global macro systematic and discretionary trend trading strategies specific to the forex market. The trades are executed when there is a high conviction of a directional bias caused by an alignment of fundamental data, intermarket analysis, market sentiment, technical analysis and a risk to return ratio of 1:3+. When these conditions are not met, the trader stays out of the market as part of his risk management and trading psychology strategy.
The maximum drawdown limit is 20%. The maximum daily VaR limit is 5%. Risk utilization per trade is nonlinear and increases based on the conviction level of each trade's success. A diversified portfolio of uncorrelated currency pairs are traded as opportunities arise. Capital preservation is always the priority before achieving the targeted monthly return of 8%.