Success built on hard knowledge

After a year of trying and testing different ideas on how not to lose money when exchange rates fluctuate a lot I have drawn the following conclusions:

1. Don’t listen to bank specialists. They are minding their own business, not yours.
2. Don’t waste your time wondering if the currency exchange rate is at a good level today or not. You are not a fortune teller.
3. Don’t freeze your capital, you have to trade it.
4. Don’t make the customer pay for your incompetence. If you raise your prices you will become less competitive.
5. Hire professionals who understand your business processes. You will find a platform for conversation where common goals are set.
   

   And the key conclusion:

   Calculate, monitor, manage, measure – the currency position in your company. Without good input data for decision making, you will become a speculator who occasionally gains but more often loses.

It has been a very interesting 2 years in my business. I lost 135,000 in the first year to make up almost all of it in the next year. Thanks to proper management I know exactly

– how much my company has lost or gained today on changes in exchange rates

– how much I can gain or lose today by deciding to hedge my open currency position

I measure and manage and it happens semi-automatically.

What about in the future?

I am on my way to automating the whole process. I want to make decisions during the weeks of the due dates. I want to make optimal use of instruments for hedging currency risk in order to achieve a high level of security and at the same time not lose the opportunity for periodic additional profits when the exchange rates move in a favorable direction.

I am working on algorithms that will generate a set of actions to be performed (currency exchange, use of a specific hedging instrument, shift of hedging) from the input data such as: sales invoices, purchase invoices, market analysis, historical analysis, owned hedging portfolio, seasonality of business.

I am on my way to construct a tool that is not on the market and that will achieve international success.

In 2017 I founded the company ExChord and in it I am working to ensure that companies operating in foreign currencies do not lose money when exchange rates fluctuate strongly !!!

Translated with www.DeepL.com/Translator (free version)