Kaufmann-Rothstein International Reveals Accessibility of New Forex Trading Strategy to Help Reduce Market Volatility, Improve Investment Portfolios

Kaufmann-Rothstein International revealed today it will soon offer accessibility to its new forex portfolio model trading strategy which aims to enhance investment portfolios as well as reduce market portfolio volatility.

Haarlem, Netherlands, July 16, 2011 --(PR.com)-- The newly Forex portfolio model trading strategy is introduced in the wake of the stock market stability where some investors are turning away from the Forex market.

“We have seen a number of forex traders who are staying out of the Forex market; maybe because they lost their capital and have decided to give up or maybe because they do not basically know where to place their capital properly,” said Dorothy Belton, Managing Director of Global Research and Business Development Division of Kaufmann-Rothstein International. “Our portfolio model trading strategy designed for foreign exchange trading is our manner of re-motivating this inactive money by placing them in a low-cost and comparatively low risk style.”

Kaufmann-Rothstein International’s new forex trading strategy model is patterned after the financial institutions’ basic indices that appraise the essential economic potency of some major currencies such as US Dollar, New Zealand Dollar, Canadian Dollar, Japanese Yen, Euro, British pound, Swiss Franc, Swedish Krona and Norwegian Krone. This pattern gives a hypothetical 45 potential currency crosses; however, the new model takes away at least 12 most illiquid and high-priced to trade and focuses on the remaining currency crosses.

The distribution indicators are created by the spreads in the basic indices and the initiative is to always apportion more capital to the particular currencies that have strong economic movement, affirmative rate outlook and fund the positions by going short on the currencies with relatively weak rate outlook.

The new Forex model also gives out capital after modifications in the spreads between the basic indices. For instance, if the Euro Fundamental index unexpectedly drops comparative to the US Fundamental Index, the new Forex model will would adjust and reduce exposure to Euro/US dollars. Furthermore, the positions will be scaled up or down based on the volatility of the currency crosses so that the anticipated risk-adjusted return for positions in Euro/Swiss Franc is the same as for Euro and Canadian Dollar positions.

“Our new Forex model is always well-diversified and always focused in the Forex market. It is therefore not exposed to timing issues,” added Belton.

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Kaufmann-Rothstein International
Paul Reeves
+31207184148
www.krintl.com
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