Friday, February 29, 2008

Why we started the fund/What you should remember about our risk appetite.

I thought I'd take a moment to share with you why we started Tradewinds Asset Management.

As our group began to learn to trade Forex it never was our intention to trade other individuals' funds. Our goal all along was to take a small portion of our own portfolio and endeavor to make high returns on it through a high-risk investment (Forex). And with that goal in mind, in late 2006 we set to work on building a trading strategy that would meet that goal. Our trading strategy is ours and ours alone. It is tailored to OUR trading personality and risk comfort levels. From the beginning we have understood that our risk appetite, investment goals, and financial personalities are not necessarily the same as other investors and that quite frankly "no two investors" are the same. We hope that you will understand, that when you ask us to manage your Forex account, that we will be doing so according to our risk appetite.

And so as we started trading live funds fall of last year, word of our Forex success quickly spread. Our trading system saw returns of over 40% in October and November 2007. Soon into November our family and friends were asking us to trade their money alongside ours. In response to these requests we formed Tradewinds Asset Management.

We try to be as transparent as possible. We have shared EVERY trade our system either took or would have taken . This data is crucial to understanding our risk appetite. We risk large amounts in anticipation of large returns. Few systems average 30+% monthly returns in a year without risking equal amounts. Our risk appetite may not be as aggressive as those Forex traders who experience drawdown as high as 50-60% nor may it be as conservative as those who limit drawdown to 5-10%. We trade according to the risk appetite of our partners and those who choose to have their money traded alongside ours are subject to that same level of risk. It may not be enough risk, it may be too much, or it may be just right. It is up to each individual investor to find out for him/herself what level of returns they would hope to make and then take the risk that corresponds to those potential returns.