Our Focus
Our Approach
We trade the FX spot market, focusing on G10 major currency pairs. Our strategies exploit market opportunities and inefficiencies via price action technical trading concepts. We utilize algorithmic systems to optimize our risk management and trade execution process.
Our conservative strategies offer a source of reliable returns that is uncorrelated to traditional asset classes, which allows for stable wealth accumulation in the long run.
Why FX?
- Largest & most liquid global financial market with US$5-6 trillion of daily liquidity; Relatively lesser concerns of black swan tail risk
- Diversification to traditional asset classes; Uncorrelated to broader market movement
- More trading opportunities, given market access 24 hours, 5.5 days a week
- Ability to generate higher returns given profit potential in both bullish and bearish markets
Why Algo Trading?
- Absolute discipline in risk management
- Eliminate the emotional ups and downs of manual trading
- Faster than human in reacting and adapting to volatile markets
- Systematic computerized approach ensures best in class execution
- Develop a consistent and sustainable edge over the long run
Why Focus on Capital Preservation?
At Ortega Capital, we place a strong focus on capital preservation as clients are sensitive to any loss of capital. We believe that by focusing on loss avoidance, it delivers the best client experience in the long run.
Prospect Theory
Key points
- Individual’s fear of losses is greater than their joy of gains
- Most clients would prefer to avoid losses rather than to chase profits
% Loss of Capital
% of Gain Required to Recover Loss
20%
25%
30%
43%
40%
67%
50%
100%
60%
150%
70%
233%
High cost of loss
Key points
- Avoiding loss is a key concern for clients looking to preserve capital
Source: Daniel Kahneman and Amos Tversky, 1979, “Prospect Theory. An Analysis of Decision Making Under Risk“. For illustrative purpose only.
