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