Category: Education

  • There is a Story behind Every Futures Program

    | | Education

    As one of the world’s largest futures databases, we begin talking to traders often at the earliest stages of their evolution up to billions of dollars in assets. But not all beginnings are equal, as some achieve early success and others never find it at all. Part of our challenge is trying to determine which ones provide the best opportunities to our investors. One might think that this is a simple process.  A few favorite search methodologies on our site include Sharpe ratio, returns, or minimum investment amount. Each of these can be a good way to filter but ultimately … Read more There is a Story behind Every Futures Program
  • Understanding Minimum Investment Sizes

    | | Education

    Managers in the futures space are faced with a dilemma when they launch their programs.  They need to choose a trade level.  For an equity manager this is an easy process as they often trade 100% of the cash available and sometimes decide to use leverage.  ALL futures contracts already have the leverage built in so the question for them is how much to de-lever. Take manager ABC.  He trades his own account very aggressively and routinely has drawdowns of 20% but can make 60% in an average year.  He recognizes that this might be uncomfortable for investors.  He therefore … Read more Understanding Minimum Investment Sizes
  • CTAs Set to Thrive at End of QE Era

    | | ECB, Education, QE

    In the midst of any foggy economic phenomenon, it’s difficult for an industry to really assess how it’s being affected. But with time comes clarity, and it’s now possible to look back on the past eight years of Fed policy and draw broad conclusions about how Quantitative Easing actions created headwinds for investors in the managed futures space. Crucially, these conclusions give us a reason to feel optimistic looking toward 2017 and the return to a world of abundant, varied trading opportunities … Read more CTAs Set to Thrive at End of QE Era
  • The Failures of Central Banking

    | | Central Bank, CTA, Education, Federal Reserve, RMG Wealth

    We have been meaning to write an in depth report on central bank policies for some time and the market responses to recent BoJ policy decisions as well as the Fed meeting and press conference this week have nudged us to make a start. Below are some initial thoughts on how good central banks are in their forecasts and where they may take us in the future. We don’t mean this to be a rant, but it’s hard to discuss central banking politely when they have been so ineffective, when they refuse to accept they have been incorrect and they refuse to fully acknowledge the full unintended consequences of their hugely experimental policies … Read more The Failures of Central Banking