Your Personal Risk Assessment

Investment risk is a personal and serious subject.
At Grand Cayman Capital we work with our clients to first understand risk and at the same time identify each client’s tolerance for risk. We also identify that all investing carries some degree of risk and that the amount of risk is most definitely tied to the potential reward. Without this basic system we would not have a free enterprise marketplace which is at the center of all commerce.

It is difficult to speak about risk, market risk, risk to one’s capital when invested – without speaking about volatility. At Grand Cayman Capital we embrace volatility. Our Investment Dealer Strategies are centered on volatility studies where we identify new support levels and resistance levels in the price point of all traded commodities, currencies and related market indexes.

We challenge the old paradigm which has told us to run from volatility, that volatility is paramount to increased risk, however, we have proven through historical data and present day results that a volatile market can mean less risk when properly positioned and on the right side of market movement.

Together, let’s look at times of high volatility meaning the market price of a currency or commodity is unstable and moving aggressively. Price movement can be either up or down reacting to a new support level or hitting resistance where more buyers become sellers. The important thing that must resonate with us is that this volatility can present a market with less investment risk because we have movement and sometimes dramatic movement in price. When the price of WTI crude oil dropped to less than 10$ per barrel on the international exchanges we assessed it was an unsustainable price and would move back up and move up in short order. It was back above 35$ per barrel in less than 30 trading sessions. Now that’s volatility… and properly positioned with Grand Cayman Capital, volatility risk can become manageable and extremely profitable.

Equally, times of low volatility can present more risk because lower volatility means less movement up or down in the value of a commodity or currency pair. When volatility is low changes in the price of a commodity are not as drastic and making money requires a skill set and trade strategy to match. This includes product diversification across broader market exposure and a clear predefined exit strategy. Understanding the data of what moves during which market conditions, geopolitical tensions and new data sets that can impact markets in a flash such as social media and climate change. Information and knowing how to interpret information and put it to use in an understandable and communicable trade strategy is important to us.

Whatever market conditions we are faced with a volatility assessment is an important part of understanding your risk tolerance. The other key component is Timing. By applying the most advanced computing power to the best current and historical data and sharing it with the best minds in the business we can identify entry and exit points to minimize exposure to risk and maximize profits under any market conditions.

Find out your real risk tolerance​

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