Thu, Sep 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

Manager profile: Jan de Wever of WholeCapital describes his distinctive trend-following approach.

Thursday, January 07, 2010


Trend Following with an Eye on Psychology

We feature a trend-follower with a distinctive method. WholeCapital founder Jan de Wever is a discretionary trader who looks for a behavioral edge while using a systematic model for risk control.

Mr. de Wever hails from Belgium but is currently based in San Francisco. He says he bought his first mutual fund at age nine and his first stock at twelve. He started trading futures at age seventeen. Prior to starting WholeCapital in 2009, he worked as a trader for Fortis bank (now BNP Paribas) in Brussels and arbitrage firm Flowtraders in Amsterdam.

He’s been trading for his own clients for only a few months, but sounds happy about his hybrid approach. We asked him to explain how he differs from other trend followers.


WholeCapital’s Global Opportunities Program is designed to profit from short- and
medium-term trends. But we’re not a typical commodity trading advisor. Our trading strategy is positioned between a CTA and a global macro approach.

The trading system is hybrid in nature; it combines (40%) systematic and (60%) discretionary elements. We feel this provides the flexibility to adapt to the infinitely complex and ever-changing marketplace while conserving the repetitive process of a systematic trading model

The trading program incorporates technical analysis as well as ideas from behavioral finance. In essence the trading model aims to profit from recurrent human behavioral tendencies through pattern recognition, volatility and inter-market trend analysis.

Risk management is entirely systematic, with risk limits on each trade and an overlay on the entire portfolio to make sure we don’t risk more than 5% on strongly correlated positions.

The other systematic component is in identifying entry signals. But there is discretionary choice from systematically generated signals: when there are three or four entry signals, we will the choose the one that I perceive as having the best risk/reward profile.

In addition, I apply a additional psychological screening where we seek trades that look and feel the most uncomfortable. That’s because I believe that in the market there is a trade-off between being comfortable and making profits. Does that make us a contrarian? “Yes” in the sense that we will look for less crowded trades, but “no” in the sense that we don’t tend to go against price action but look for underlying relative strength and weakness.

We focus only on the most liquid markets. Positions are clustered around five to ten liquid global markets that are predominantly driven by speculative flows. Mainly Gold, Crude Oil, T-notes, T-bonds, S&P, EUR/USD, JPY/USD, GBP/USD, AUD/USD & CAD/USD. The target for the program is to achieve +20% annual returns with a worst peak-to-valley drawdown of 15%.

WholeCapital is a company with a higher purpose. We aim to build wealth for our clients and also make them feel good about the company they are aligning themselves with. 10% of our own profits will be donated to targeted charitable projects.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Newsoftheweird.com: Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3