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Our
Trading System - Philosophy and Principles
The Name
: Resam Padi Trading System (RPTS)
Resam Padi
are two Malay words: Resam means Tradition while Padi means Paddy, a fundamental
cereal grain, but more than a simple agricultural product, it symbolizes
many facets of life.
A proverb says
that the richer its grain, the more it bends its head. As the stalk ripens,
the end of the stem bends under its weight. The proverb suggests the greater
a man's power, the more humility he should show towards others.
It is no coincidence
that paddy is related to humility. Humility, self-discipline and willingness
to yield are the traditional virtues and seem to correspond to certain
traits of character: the desire to avoid confrontation and to achieve consensus.
The Principles
of RPTS
With humility,
self-discipline and willingness to yield, RPTS is designed based on historical
data that market adjustments sometimes form trends. The models have revealed
that there is an inherent return in participating in price movements that
reflect those trends.
No Prediction
RPTS does
not predict trends nor predicts any future market movements. While confirmation
of a trend’s existence is sought through a variety of statistical measures,
RPTS does not know a trend’s beginning or end until it becomes a matter
of historical record. Trending markets can experience fluctuations in price
which may or may not signal fundamental shifts in direction. Consequently,
through RPTS, to enter a market at the precise moment a bottom is hit,
nor will exit a market at the exact top is not expected.
Prices:
The Foundation of Analysis
RPTS is based
on the hypothesis that people’s expectations adjust slowly and manifest
themselves in long-term price trends.
A second hypothesis
is that prices eventually will reflect all relevant information. That is,
anything that could possibly affect the market price of a commodity or
financial instrument -- including fundamental, political, or psychological
factors -- will be reflected in the price over time. Initially, prices
may over or under react to new information. In addition, price signals
can be noisy and may have to be filtered to discover the underlying true
information. Nevertheless, a study of market price, rather than market
fundamentals, is the foundation for the analysis.
The Use
of Money Management
RPTS is more
focus into sound money management and risk control rather market analysis.
RPTS believes, the key to profits in trading is not in the predicting ability,
but how well the trading strategy is designed and executed. RPTS believes
the ability to achieve risk control and cash management will make the difference
between a successful investment and an unsuccessful investment.
Disciplines
RPTS is designed
to be harmony with both the user of the system and the markets.
No Superior
Analysis Accuracy
With RPTS,
low analysis accuracy is expected. RPTS is into trading strategies rather
analysis accuracy.
Harmony
with the Market
RPTS is designed
to be harmony with the market. Expect to go long when the market is going
up, and short (or out of) the market when it is going down.
Requires
Enough Time to Work
RPTS is a
long-term trading strategy - trading with the objective of making money
in the long run (6 - 12 months) and consistently that the strategy will
make money given enough time.
Investing
through RPTS
Through RPTS,
investment should be viewed as long term with objective of seeking capital
appreciation over time.
Benefits
and Risks
As with any
investment, there are both potential benefits and risks involved. Please
read the Risk Disclosure Statement.
Reliance
on RPTS
No assurance
can be given that the techniques and strategies of RPTS will be profitable
in the future. |
