What is global macro discretionary trading and what are strategies associated with it?

Global macro is a very volatile policy that attempts to make profits from changes in the market owing to various events. Traders here make bets and predictions from trends in the market and try to cut out profits from these. The strategies are grouped under two categories- discretionary and relative. The global macro strategies are based on macroeconomic analysis of the trends of the market. The global macro strategies are flexible to a large extent.

Discretionary trading is executed by those who select their own investments. These traders shuffle between a lot of trading strategies and also move between different frameworks. Change can be employed as one important strategy of global macro discretionary trading. This actually makes the entire process of risk management tougher. But the real test of a trader lies when he has to make his way through and select which model is to be given in a situation.

Another strategy is conditional returns on selected bonds. The strategy focuses to involve minimum investment and maximum returns. In the discretionary category, the manager conducts a thorough research of economy of the market, changing positions and then arrives at opinions and forms his own judgments. The discretionary manager’s opinions have to be under review as the market scenario is changing rapidly.

The advantage of adopting the global macro discretionary strategy is that the manager can effectively avoid risks by manipulating the world economy and market swings and twists them to still earn profits. Here the markets are extremely volatile and are subject to change anytime. So therefore a discretionary manager has to always be aware and keep a track of his trade. Usually the portfolio turns over within few weeks or months and you begin reaping huge profits. Global macro discretionary trading thus follows these strategies and can also be called a risk manager that helps you tackle crisis.