Category: Education
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A Managed Futures Account vs. a Managed Futures Fund
| | Education
When looking at a managed futures investment, a primary consideration should be whether a CTA’s program is offered either as a fund product or a single managed account. When investing in a fund, an investor subscribes to the fund and invests the minimum capital requirement or more. Here, the investor pools their assets with other investors in the fund. Things to consider are … Read more A Managed Futures Account vs. a Managed Futures Fund -
Six Key Variables To Trading A CTA Knows That You May Not – (Continued)
| | Education
(Continued from April 28th 2015) Yesterday we went over the first 3 of the 6 key variables to trading, a CTA or Money Manager knows that you may not, and as promised here are the last 3 Variables. To recap the first 3 were (and to read the full descriptions I will include the previous articles link at the bottom of this post): … Read more Six Key Variables To Trading A CTA Knows That You May Not – (Continued) -
Six Key Variables To Trading A CTA Knows That You May Not…
| | Education
Most professional CTA’s look and think about trading in a much different way than an average trader or investor would, and the reason for this is not hard to understand. If a CTA is successful what it means to me is that they have dedicated their lives to the craft. Every trader wants to be successful, the subtle difference with a profitable CTA is that they need to be successful, this is their livelihood. They are willing to spend every waking hour learning their craft, testing and back-testing new systems, methodologies, and philosophies, this obviously takes a lot of time. … Read more Six Key Variables To Trading A CTA Knows That You May Not… -
How A CTA May Use Volatility To Set Protective Stops…
| | Education
A non-high-tech measure of *historical volatility is given by the range of market prices over the course of a trading interval, this is usually a day or a week. The range of prices is defined as the difference between the high and the low for that given trading interval. If the range of the current day lies beyond the range of the previous day (Gap- up or down) the current days range must include the distance between the current days range and yesterday’s close. This is what is referred to as the “True Range”. The true range for a gap-down … Read more How A CTA May Use Volatility To Set Protective Stops… -
5 Things You Should Know About Managed Futures
| | Education
1. You can use bonds as collateral in your futures account. Many Futures Commission Merchants (FCMs) will allow you to use U.S. government securities as collateral in your futures account. Some FCMs will even accept municipal bonds, foreign currencies, and foreign sovereign debt. It is important to note that a “haircut” will be taken on the market value of your securities, depending on their perceived riskiness. For example, an FCM might allow you to use 95% of the value of U.S. government securities to satisfy the exchange’s margin requirement, but might accept only 75% of the value of foreign sovereign … Read more 5 Things You Should Know About Managed Futures