Category: systematic

  • What is One Thing Profitable CTA’s Focus On That Average Traders Don’t?

    | | behavioral finance, Commodity Pool Operator, Commodity Trading Advisor, risk management, systematic

    I think this article on trading and the markets will be slightly different than anything you have read on the subject, in that the main focus is on “Losing”.  So, why an article on losing? First, my belief is that people learn the most from their mistakes or through adversity, if they are willing to open their eyes and confront what’s going on around them and the role that they play in the outcome. Specifically, in regards to the markets, apparently people have at least some knowledge about making money.  However, since most people have lost more money than they … Read more What is One Thing Profitable CTA’s Focus On That Average Traders Don’t?
  • CTA Badges and Rankings

    | | Agriculture, Commodity Trading Advisor, CTA, Discretionary, Energy, Indexes, softs, systematic

    CTAs are always looking for opportunities to provide their firms additional exposure. Since IASG compiles data within our database, we thought it was relevant to provide CTAs with more marketing power when trying to reach their investing audience. Starting later this month, IASG will provide CTAs with access to a badge for ranking in the categories that meet their trading program. These categories include: discretionary, systematic, agriculture, Trend Following, Stock Index. The rankings badges will be provide monthly to the CTA for using on their email signature, embedding in their website, or within their marketing literature. Users of the IASG database will also get access to these badges on the CTA pages located in the right sidebar of the program page … Read more CTA Badges and Rankings
  • Focusing on Short-Term Performance can be Dangerous

    | | Covenant Capital, systematic

    Placing undue focus on short term performance is a very slippery slope – it can be hazardous to one’s trading health. A seemingly ‘anomalous’ bad (or good) month may cause a manager to try to avoid (or replicate) his actions in that particular month going forward, when in reality, this ‘anomaly’ may have been nothing more than typical short term randomness. Yet by changing his actions the manager may lose some of his inherent ‘market edge’. It is not only dangerous to managers and the psychology they take into trading, but it is also dangerous to investors … Read more Focusing on Short-Term Performance can be Dangerous
  • IASG May Performance Results

    | | Agriculture, Commodity Trading Advisor, CTA, Indexes, Options, systematic

    We have now reached the halfway point of June and have compiled nearly 70% of the manager data for May 2014. With five months of performance on record, the IASG CTA Index has turned positive YTD (Past Performance not indicative of future results). We anticipate this trend to hold for the remainder of the month as investors focus now on the remainder of this year. Here is a snapshot of the database as of 6/16/2014. The IASG CTA Index which comprises the managers with a minimum track record of 3 years performance and that performance must be client based. This helps to remove start up CTAs that are really in the strategy development and asset building stage. It is too early in their business to say whether they are going to be available for years to come. Agricultural and Option strategy CTAs are atop the list of performers and are helping keep the overall index in positive territory for 2014. Trend Following Strategies are poised to post their 4th losing month in the last 5 years … Read more IASG May Performance Results
  • IASG April CTA Indexes

    | | Agriculture, Commodity Trading Advisor, CTA, Financial Futures, Grains, Indexes, Livestock, Managed Futures, Options, softs, systematic

    We are a little over half way through May and have approximately two-thirds of our CTAs updated through the month of April. Overall the index is flat and carried by agriculture and equity index manager trading for the month. Trend Following is so far posting a negative month with 73% of managers reporting. So overall on the year we are off to a moderate start as we get deeper into the second quarter. Without any significant trends we expect to see much of the same as the equity markets continue on the bull run. Agriculture should be particularly interesting as we head into planting season and this pig virus continues to play itself out … Read more IASG April CTA Indexes