RTFX - Asset Management Service Shiva

[RTFX-Trading]

Dear Clients,

As you've probably seen on our website, RTFX has launched its Asset Management service. The RTFX Asset Management Service is based on a system called Shiva, developed by the company RTFT. You can find details on our website, I will not elaborate further on this point. So the question I ask myself, should I invest in the Asset Management module Shiva??

[B][I][U]Before deciding, lets analyze the performance of Shiva:[/U][/I][/B]

[IMG]http://www.rtfx.com/images/news/SHIVA301009.gif[/IMG]

1. Impressive performance on days of very high volatility, which was the case on March 18, 2009 were a record profit of 22.75% in a day was recorded, when the EURUSD appreciated more than 500 pips in one day!
2. High performance in case of high volatility, as recorded on October 14, 2009 and September 22, 2009, were profits of 4.97% and 6.28% respectively were recorded in one day
3. Average performance of + / - 3% on days with low volatility.
4. Negative performance as the record loss of 7.23% in one day recently met October 15, 2009, when currency is "range trading".

We conclude that we need strong day in volatility in the EURUSD for Shiva to perform, which has not been the case over the last two months, resulting in poor performance. So, [B]we deduce that the performance generated by Shiva depends exclusively on the daily volatility of the EURUSD[/B].

So if you think either future announcements of ‘Exit Strategies’ from Europe or the US, or changes in interest rates policy, verbal or direct market intervention to curb the rising euro, or centralized G7 intervention to limit the dollar's decline are elements that will occur during the last two months of the year 2009 or during 2010, the module Shiva should be the product for you.

I remain at your disposal for any remark, comment or discussion and wish you a great day.

Regards,
Nicolas Longchamp
Head of Trading
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel: +356 23 31 00 00
Fax: +356 21 41 24 58
Web: [url]www.rtfx.com[/url]
[URL="http://www.rtfx.com/static/rtfx_risk_disclaimer.html"]Risk Disclaimer[/URL]

[RTFX-Trading]

Volatility is back in the EURUSD pair: as the graph below shows, after a slack period between September and October 2009, the historical volatility indicator ranged between 0.06 and 0.08, whereas at present, the indicator returns is above 0.10, indicating a return of volatility.

[IMG]http://www.rtfx.com/images/news/VOL0912091.gif[/IMG]

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel: +356 23 31 00 00
Fax: +356 21 41 24 58
Web: [url]www.rtfx.com[/url]
[URL="http://www.rtfx.com/static/rtfx_risk_disclaimer.html"]Risk Disclaimer[/URL]

[RTFX-Trading]

Shiva: Performance on the 4th December 2009.

[IMG]http://www.rtfx.com/images/news/Shiva101209.gif[/IMG]

Nicolas Longchamp
Head of Trading Desk


RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel: +356 23 31 00 00
Fax: +356 21 41 24 58
Web: [url]www.rtfx.com[/url]
[URL="http://www.rtfx.com/static/rtfx_risk_disclaimer.html"]Risk Disclaimer[/URL]

[RTFX-Trading]

The risks of a government default on its sovereign debt remain high next year and the tidal wave of debt that has overwhelmed the world threatens the recent economic recovery, like Dubai for example. A sovereign debt is debt issued or guaranteed by a sovereign issuer (usually a State or sometimes a central bank). Sovereign debt is based on the quality of issuers, be regarded as more secure than business (very creditworthy countries) or as less safe because of the virtual absence of legal recourse against the defaulting states. The possibilities of redemption are closely related to the fiscal capacity of the issuing country, and therefore depend heavily on economic performance and good fiscal management of the country. It is from these criteria that the rating of sovereign debt is given. The debt to GDP ratio is one of the bases of assessment.

The state of public finances of Greece, whose debt could represent 125% of GDP next year, has led to the agency Fitch Ratings to lower the rating of the sovereign debt of Greece from A – to BBB +, which caused a sense of fear in the markets that Greece will default its payments. Some believe that in the worst case, if the country found itself in default of payments, other members of the Euro area would probably help, and that the small size of Greece is not a sufficient reason to worry.

Unfortunately, reality is often much worse than the worst case scenario.

1.The small size of Greece is not a sufficient argument, as the strength of the Euro zone also depends on that of their weakest links.

2.Then, the credit rating of Greece could not be the only one to be degraded; Spain, Italy and Portugal have a profit of debt similar to that of Greece.

3. Finally, some investors are beginning to question the possibility that some highly indebted countries are leaving the monetary union to regain the ability to devalue their currencies.

This idea has already caused turmoil in the past for the Euro, especially during the failed referendum on the EU constitution in 2005, when the single currency fell from $ 1.3600 to $ 1.1600. The current nervousness surrounding the Euro and flows to the security of the US Dollar should cause the currency pair EUR / USD to test at least 1.4300 shortly.


[B]The Asset Management Shiva has significantly benefited from the volatility in the EURUSD with a positive performance of 8.63% last week, leaving a profit of 13.40% at December 11, 2009:[/B]

[IMG]http://www.rtfx.com/images/news/SHIVAFR141209.gif[/IMG]

Nicolas Longchamp.
Head of Trading desk.

RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel: +356 23 31 00 00
Fax: +356 21 41 24 58
Web: [url]www.rtfx.com[/url]
[URL="http://www.rtfx.com/static/rtfx_risk_disclaimer.html"]Risk Disclaimer[/URL]