During early 2008, Maize Asset Management developed proprietary phenomenological commodity trading model, which is embedded with statistical modules. These modules help define the direction, strength, volatility and velocity of each commodity's major and minor trends. The first step is locating the trend. They use long and short exponential moving averages to find the primary trend. Next they determine the velocity, momentum and volatility of the trend. It is necessary to compute these factors, otherwise the trader will not exit in the most profitable position. This model is particularly profitable in the EUR/USD because of its strong trends. The model also applies a discipline to the traders, which helps to minimize the likelihood of human error.
Adding girth to your profits Leslie K McNew Futures; Dec 2008; 37, 13; Docstoc pg. 18 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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