Читать книгу Currency Trading For Dummies - Kathleen Brooks - Страница 64

The opposite of a black box trading system is a discretionary trading fund. The discretion, in this case, refers to the fund manager’s judgment and overall market view. The fund manager may follow a technical or system-based approach but prefer to have a human make the final decision on whether a trade is initiated. A more refined version of this approach accepts the trade signals but leaves the execution up to the discretionary fund manager’s trading staff, which tries to maximize position entry/exit based on short-term market dynamics.

Still another variation of discretionary funds is those that base their trading strategies on macroeconomic and political analysis, known as global-macro funds. This type of discretionary fund manager is typically playing with a longer time horizon in mind. The fund may be betting on a peak in the interest rate cycle or the prospect that an economy will slip into recession. Shorter-term variations on this theme may take positions based on a specific event risk, such as the outcome of the next central bank meeting or national election.