Dreamfire52 Distributed Forex Fund Investment Thesis.
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Investment Approach:
Active Trading Strategy:
The fund adopts a highly active approach with the objective of beating the S&P 500 (after all fees) and maximizing returns. This involves engaging in numerous small, short-term trades, ranging from minutes to days.
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Diversification through Forex:
By exclusively trading forex, the fund provides investors with an opportunity to diversify their portfolios away from long-term buy-and-hold stock strategies. The low correlation between short-term forex trading and traditional stock investments enhances the overall diversification benefits for clients.
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Varied Trading Timeframes:
The fund employs a flexible trading horizon, ranging from short-term trades lasting minutes to day trades and occasional swing trades based on
fundamentals and news events, which may extend over a few days to weeks. This adaptability allows for dynamic response to market conditions.
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Research and Decision-Making Process: In-Depth Market Research:
Dreamfire52 is committed to continuous market research to identify shifts and gain a competitive edge. The fund incorporates insights from
non-forex markets to predict forex events. This approach is not a black box system. It is time-consuming and depends on human decision making.
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Discretionary Trading:
The fund distinguishes itself by relying primarily on human discretion over automated trading systems. With over 20 years of experience, the team combines expertise with relevant technology to make informed and value-driven decisions.
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Risk Management and Leverage: Trade Size and Leverage:
Dreamfire52 prioritizes risk management by favoring many small trades over a few large ones. Generally maintaining leverage below 20:1, with occasional increases to 25:1,
the fund actively avoids exposure beyond this, contributing to a more controlled and safer investment strategy.
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Adaptive Strategy and Continuous Improvement:
The fund reserves the right to update its investment thesis to incorporate better or more profitable methods. However, the core objective of outperforming the S&P 500 and other asset classes remains unchanged. All adjustments and enhancements to the process are directed towards achieving this overarching goal.
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Commitment to Value Creation:
Dreamfire52 is committed to working harder than other funds, driven by the belief that this dedication will create more value for investors. The combination of experience, technology, and adaptability positions the fund
strategically to navigate the dynamic forex market successfully. In conclusion, the Dreamfire52 Distributed Forex Fund presents a unique opportunity for investors seeking an alternative approach to traditional stock investments.
The fund's active trading strategy, research-driven decision-making, and commitment to continuous improvement underscore its goal of outperforming benchmark indices and delivering value to its investors.
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Last Updated 9/7/2024