Investment Philosophy


  • Uncorrelated asset classes: Correlation is the measure of how assets move relative to each other, usually in response to changing economic and market conditions. Highly correlated assets will more often move in unison (e.g., increase or decrease together), while assets with low, zero or negative correlations will behave more independently or even oppositely. Therefore, the less correlated the assets in your portfolio, the lower your risk, and hence the better diversification you achieve.
  • Systematic (rule based):ERIC has designed a system for trading and we abide by it religiously. Benefits of systematic trading are:
    • There is little or no emotion involved
    • Its time efficient
    • Personal control in trading with no bias of outside sources
    • Easier than discretionary trading
  • Money management principles: Money Management is the art of keeping your risk of ruin at acceptable levels while maximizing your profit potential.
  • Risk management: Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce/curb the risk.
  • Trend following: A trend is a general drift or tendency in a set of data. All measurements of trend involve taking a current reading and a historical reading and comparing them. If the current reading is higher than the historical reading, we have an up-trend. If lower, we have a down-trend. In the improbable event of an exact match, we have a sideways trend. The direction of the trend depends upon the method we use to perform the comparison.
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