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Q&A With CRT Currency Exchange

Company Information




Company Name:

CRT Currency Exchange Ltd.


Address:

Toronto, Canada


Contact Name:

George V. Marcus


Phone Number:

(416) 364-7188


Fax Number:

(416) 364-7177


E-Mail:

crtdirect@home.com


Product Name:

Currency Resilience Trading (CRT)


Total Assets Under Management:

$12,000,000.00 USD


Firm Inception Date:

1990 in Europe & 1994 in North America


Number of Employees:

4


 


Return Information

Annual Performance

1996

1997

1998

1999

2000*

13.50%

7.40%

-0.47%

11.14%

15.54%

*ytd November 27, 2000


 


Statistics

Annualised Performance:

compounded 16.60%

Standard Deviation:

on monthly ror 2.75%

Sharpe Ratio:

cumulative 1.25

Parker FX Index Rank as of October 2000:

29 out of 42

 

Questions


1. How and when did your firm begin?

CRT Systems is a unique European designed forex trading model created in 1986. It became fully operational in 1990, at which time the service was used by financial institutions in Europe. Senior management involved in the development of the system have an average of 25 years experience in financial markets in Europe and North America. CRT stands for “Currency Resilience Trading.” It is a computer-based intelligent financial forecasting system. In the 10-year history of our company, we have learned a lot about the limitations of our product. The product has had two significant overhauls relating to trading strategy. In each case the focus was eliminating weak trades and trading strategies.


2. Who are the principals of your firm? Please provide a brief background on each.


George V. Marcus – President

Twenty-five years investment-banking experience. Career focus was and is risk management analysis. I cover product development and trading.


John Hardy – Director

Previously, Head of the Foreign Advisory of Chemical Bank with special responsibility for managing the Bank’s foreign capital base.


Matey Nedkov de Lacamp – Director

An international financier specialising in strategic planning for Advertising Media.


John J. van Bentum – Director

His career in International Banking and Trade started with one of the largest Dutch trading houses. During his career of over 30 years, he has held several key positions at major banks in both Europe and the Middle East.


3. Please describe your best trade ever and when it occurred.

Our philosophy is not geared to produce a best trade approach. Rather, we see ourselves as trying to produce consistent returns over long periods of time. In January of this year, we completely revised our trading program and from that time forward we believe that we have produced consistent rates of returns for our clients. With this in mind, I would say the best returns that we have accomplished that focus on our goal has to be this year’s returns.


4. What was your most difficult period?

The most difficult returns have to be the fall of 1998. Our performance going into September was around 14% and from that month forward we managed to give back all of the returns. It was a very difficult time for new clients who suffered through a very trying time for CRT. The positive conclusion that we have drawn from this period is that it eventually led to a complete revision of our trading system. The results of the changes we believe are demonstrated in our 2000 performance track record.


5. What is your outlook about the direction of the JPY, USD and Euro for the remainder of the year?

In 1999 we nicknamed the US dollar the “dot.com dollar”. It, like all dot.com stocks, seemed to defy any logical evaluation. We all know what happened to the dot.com stocks. Will this also be the eventual outcome for the USD? We don’t think so, but we do believe that a strong US dollar will become a burden to growth and valuations of US business. For the above-mentioned reasons we would question the logic that a strong dollar is still in the best interest of the American economy. In the short term, we feel that the present trading ranges will persist until mid January 2001.


6. What is your view on emerging market currencies?

We do not have an opinion on emerging currencies.


7. What types of instruments do you trade?

Our focus is the USD vs Sterling, Yen, Euro and Swiss Franc.


8. Is leverage used? If yes, maximum leverage amount? What is average leverage amount?

Our performance figures are based on two times capital leverage. We have clients that leverage their trading up to 10 times capital.


9. What is the average length of time positions are held?

Our average length of hold varies between one and five days. Occasionally we may hold a position for two weeks.


10. Average number of positions during the month.

We normally turn the portfolio over four times a month. Funds are evenly distributed among the four currencies.

Profit & Loss

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