Introduction

The Global 58 Fusion Momentum Portfolio represents a paradigm shift in proprietary trading, integrating the power of 28 major forex pairs and 30 Dow Jones Industrial Average (DJIA) stocks into a unified, momentum-driven strategy. Designed exclusively for internal proprietary trading by Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., this portfolio reflects precision, resilience, and the seamless fusion of forex and equities.

This guide explores the portfolio’s strategic design, the advanced use of the Global Algorithmic Trading Software (GATS), and its tailored configurations, including MACD (25, 89, 8) settings aligned with market structure.

1. The Philosophy Behind the Global 58 Fusion Momentum Portfolio

Strategic Focus

• Exclusively managed using proprietary capital, ensuring alignment with long-term financial goals.
• A dual-asset approach combining forex and equities for diversification and trend-following opportunities.

Why the Name “Fusion Momentum”?

• Fusion: Represents the integration of two powerful asset classes—forex and equities.
• Momentum: Captures the portfolio’s focus on leveraging trend dynamics for consistent growth.

2. Portfolio Composition

A. 28 Major Forex Pairs

• Covers major, minor, and cross pairs, including:
  • EURUSD, GBPUSD, USDJPY, EURNZD, and AUDCAD.
• Offers exposure to global economic trends, central bank policies, and market sentiment shifts.

B. 30 DJIA Stocks

• Includes a diverse set of blue-chip equities, such as:
  • Apple (AAPL), Microsoft (MSFT), Johnson & Johnson (JNJ), and Goldman Sachs (GS).
• Provides stability and growth opportunities across sectors like technology, healthcare, and industrials.

3. Trading Methodology

Primary Strategy: Global Hourly Trend Follower (M60)

• Tailored for the M60 timeframe to capture hourly market trends.
• Integrated with MACD (25, 89, 8) settings for enhanced signal accuracy.

MACD Settings Explained

1. Fast EMA (25):
   • Tracks medium-term price momentum aligned with the Transition Zone (EMA 16 to EMA 25).
2. Slow EMA (89):
   • Anchored to the Correction Zone (EMA 51 to EMA 89) for a broader trend perspective.
3. Signal EMA (8):
   • Ensures timely confirmation of entry and exit points.

EMA Zone Framework

• Momentum Zone (EMA 1 to EMA 8):
  • Identifies short-term price action and breakout potential.
• Transition Zone (EMA 16 to EMA 25):
  • Acts as a pivot for medium-term trend validation.
• Correction Zone (EMA 51 to EMA 89):
  • Defines long-term trend sustainability and key reversal points.

4. Risk Management Framework

Trailing Stop Options

1. 5x DATR (M1440):
   • Suited for broader trend-following strategies on daily price movements.
2. 18x ATR (M60):
   • Ideal for capturing intraday trends with tighter stop-loss levels.

Key Risk Parameters

• Break-Even Point: Set at 36.9% of initial risk to protect capital during early trade phases.
• Maximum Risk: 5% of free equity per trade ensures disciplined exposure.

Take-Profit Target

• Aims for a 10:1 Reward-to-Risk Ratio, capturing significant trend-driven gains.

5. Practical Application

Buy Signal Criteria

1. MACD Line crosses above Signal Line.
2. Price above the Transition Zone (EMA 16 to EMA 25).
3. Global HAS (Heiken Ashi Smoothed) candles turn blue.
4. ADX > 20 confirms trend strength.

Sell Signal Criteria

1. MACD Line crosses below Signal Line.
2. Price below the Transition Zone.
3. Global HAS candles turn red.
4. ADX > 20 confirms bearish momentum.

Exit Strategies

• Trigger trailing stops (5x DATR or 18x ATR).
• Reverse MACD crossover signals.
• Achieve the profit target (10x initial risk).

6. Benefits of the Portfolio

A. Diversification

• Exposure to global forex and equity markets reduces risk concentration.

B. Enhanced Signal Reliability

• MACD (25, 89, 8) settings align with market structure, reducing noise and false signals.

C. Adaptability

• Trailing stop flexibility ensures the portfolio adjusts to varying volatility conditions.

D. Proprietary Efficiency

• Exclusively leveraging proprietary capital enables tighter control and operational independence.

7. Performance Monitoring

Key Metrics

1. Monthly ROI: Target 2%-5%.
2. Maximum Drawdown: Maintain below 10%-15%.
3. Sharpe Ratio: Aim for 2.0+.
4. Profit Factor: Keep above 1.5.

Tracking Tools

• Use GATS analytics to monitor:
  • Individual instrument performance.
  • Portfolio-level trends and correlations.

8. Conclusion

The Global 58 Fusion Momentum Portfolio epitomizes innovation in multi-asset trading, offering unparalleled opportunities for proprietary trading firms to achieve consistent profitability. By blending forex and equities within a robust risk management framework, this portfolio sets the benchmark for precision and resilience in today’s volatile markets.

About the Author: Dr. Glen Brown

Dr. Glen Brown is a visionary financial engineer and the architect of the Global Algorithmic Trading Software (GATS). As the President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., Dr. Brown brings over 25 years of expertise in crafting innovative trading solutions. His work embodies the principles of precision, discipline, and independence in trading.

General Disclaimer

⚠️ Risk Warning: Trading forex and equities involves significant risk and is not suitable for all investors. This guide is for educational purposes only and does not constitute financial or investment advice. Past performance is not indicative of future results. Always consult a professional advisor before making trading decisions.