At Xavier McAllister Capital, we hire and fully fund traders that trade our funds, majorly buying and selling currencies, commodities, indexes and share prices. Hence, whether they make profit or a loss on their actual trading, they earn a salary as a trader. This allows such traders to not risk their own funds, but risk the funds of the firm. When we compare traders trading their own funds in an attempt to make a profit, we tend to find out that funds available to trade are pretty small. While online brokers offer leverage, the amounts traded by home traders are much smaller than those of a professional trader. At Xavier McAllister Capital LTD, we provide the funding for our traders to trade the markets. All we ask for are great trading strategies to be applied while proper risk management approaches are taken.
We’ve also since accepted that realistic and quantifiable goals are a must. Trying to round up volumes of £40,000 – £120,000 per month per account on the scale of our trades are projections of our future as we grow organically. Accepting figures of 20%-35% annual return on investment or getting a total of 150 pips per month per trader may be manageable. We set ourselves daily goals to manage our performance but also work towards monthly goals.
Setting ourselves realistic goals enables us to reduce anxiety in our teams. Having a tried, tested and consistent trading strategy is what actually gives us the best results. At the same time, learning to be flexible and adaptable is key in this ever changing market. Sometimes we have a gold plated strategy that has been tested and is continuously giving us results. And then we find out that the strategy can not be applied to a particular market or instrument. The best lesson in all of this is to work with what gives you the best results the majority of the time. And don’t get emotionally tied to a method. If it certainly isn’t working, make that change.
We have strongly moved over to a day trading style as opposed to swing trading – simply because of increased volatility on the markets. Flexibility is key. Some may argue otherwise, but this works for us as a company. So, once again we will re-emphasise – Back test your strategy!. At Xavier McAllister Capital, we back test strategies using 3-6 years worth of test data on various timeframes and using the best tools available until we are secure in the strategy. Before employing a trader with our strategy, we will put the trader through the most rigorous amounts of testing so as to ensure that they are compliant with our trading styles. Traders that don’t have a consistent strategy won’t get through our doors.
Trading psychology is essential to survive in this game and by providing veted courses that could help control emotions, we see the best results coming from our traders outputs allowing them to make informed and rational decisions as well as managing their stress levels.
Our traders tend to keep up to date with the markets. From following articles and news alerts on Bloomberg, CNN and subscriptions to the Financial news, we certainly don’t want to be caught unawares on that important news announcement. Being aware of central bank announcements, political events gives us an edge when it comes to making important trade decisions. There are various trading calendars online that indicate upcoming news that will affect our trades and our team approach keeps us aware of what is happening on a daily basis.
Over trading is also an activity we try and avoid. We focus on elements of the One Good trade. Sometimes we might wait for a day with no positions open. We patiently wait until a profitable price action happens. The profit is in the waiting and being there at the right time. Sometimes, just 2-3 trades a day are what you need to be profitable. Our traders do not have to make a lot of trades to be successful, they just need to make the correct trades.
Having a work life balance is essential to our team as well. Team playing is essential too and to get through our doors, you simply must have what it takes and be the “Brightest and the Best”