Genoa Capital

About Us

Our process:

At Genoa Capital we utilize two distinct investment systems. The Primary System focuses on position and swing trading. The average trade length is about 10 days but can extend to a month or more. We are quite content to sit out the market when conditions are not optimum, only entering trades when we believe have greater than 90% probability of success. Preferring positive positions, we are happy to let the trade develop while "being paid in the trade."

The Genoa Capital principals have developed proprietary analytical tools specifically for currency analysis and trading which have proven to be remarkably effective. The first step in the analytical process is to determine which position to open, there must be a fundamental reason, it must make sense. this image floats to the right

At Genoa we do not attempt to predict the future rather we concentrate on inherent value. Now the quantitative process begins, First we seek out the Inherent Value (IV) then the IV Trend. Not wanting to fight the trend we prefer to trade the snap-back in the direction as the IVT. Our next step is to determine the IV Gravity and the Price Elasticity (LST). These are proprietary tools to determine how far under or over valued the currency is and at what point the market begins to agree. Once the IVG has maximized and the LST is in retraction, only then will we open the position. With the compounding forces of the market trend, the IVT and IVG the related price move is generally powerful. Historically it has taken an extreme market anomaly to reverse direction more than temporarily.

Our Secondary System is a dual strategy combining SynthHedge and ArbConvergence, designed specifically to take advantage of both trending and sideways markets. It trades highly correlated pairs such as the Australian and New Zealand dollar as well as the Euro and Swiss Franc vs the Yen and USD. Creating the Synthetic Hedge allows Genoa to profit from big market moves in either direction while protecting against incorrect market bias. In sideways markets without much direction the synthetically hedged trade is arbitraged. In choppy (whipsaw) markets where the SynthHedge is not suited the ArbCV strategy is optimized. This strategy profits from the convergence of the correlated pairs. Divergence (correlation separation) occurs when one of the currencies moves faster or further than the other, conversely they reconverge on the counter move, thus ideally suited for choppy market conditions.

We believe the combination of these systems places us in a unique position to take advantage of the various market conditions.

Important information:

No "100% safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss. There is always a relationship between high reward and high risk. It should be understood that currency trading involves high risk and substantial losses are a real possibility. Only surplus funds should be placed at risk and anyone who does not have such funds should not participate in trading foreign currencies. Please read our full Disclaimer here.