Archives
A Managed Futures Account vs. a Managed Futures Fund
When looking at a managed futures investment, a primary consideration should be whether a CTA’s program is offered 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 […]
Six Key Variables To Trading A CTA Knows That You May Not – (Continued)
Previously, 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 three were Now onto #4, 5, and #6… #4. How often do you have the opportunity to trade? […]
Nothing New From The Fed
The myriad of bad economic news throughout the first quarter was punctuated today by the Commerce Department report that reported U.S. gross domestic product barely grew, only rising at a 0.2 percent annualized pace in the first three months of 2015. As usual, Federal Reserve officials sounded upbeat in their statement today, and as expected, there was […]
Oil DOE Preview: Saudi Royal Family Plays Games?
At 10:06 EST Tuesday, news broke from Dubai-based Al Arabiya that the Iranians had sieged a US cargo vessel in the Gulf. Brent and WTI spiked within minutes as the algos went wild. However, both markets failed to breach yesterday’s high. Within an hour, the market erased these gains as it turned out this was […]
What Most Traders Don’t Know: Six Key Variables Professional CTAs Focus On
Most professional CTA’s look and think about trading much differently than an average trader or investor would, and the reason for this is not hard to understand. If a CTA is successful, they have dedicated their lives to the craft. Every trader wants to be successful; the subtle difference with a profitable CTA is that […]
Utilizing Market Price Range and Average True Range for Effective Trading Strategies
The range of market prices gives a non-high-tech measure of historical volatility* throughout a trading interval, 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. For example, if the current day’s range lies beyond the previous day’s range […]
Oh, Wheat…
Wheat futures continued their downslide today with May15 sinking 15 ¼ cents in Chicago and settling at 4.70 ¼ and hitting a new life of contract low, this all despite Funds holding a record 100,000 contract short position. U.S. moisture has been beneficial with weather forecasts into next week for additional rains which is starting […]
Cattle: Futures Commentary
Bulls had something to cheer about to finish off last week’s trading in the Cattle markets after Thursday’s limit higher move followed by a $2-3 rally on Friday. However, the Friday afternoon USDA news was somewhat of a letdown, with the choice beef cutout coming in off $3.02 and the monthly COF (Cattle on Feed) […]
Energies: Outlook for the Upcoming Week
Friday’s choppy action was unsurprising as the refined products exhausted themselves on Wednesday and Thursday. After a quiet start to the week, RBOB gasoline shot up 13 cents and up HO 10 cents while Brent Crude popped $4. Interestingly, June WTI closed DOWN for the week as we saw the June Brent/WTI spreads widen to over $8. Last […]
Still Neutral Sugar
Sugar #11- May15 Futures – In yesterday’s trading session Sugar future values were strongly influenced by the exchange rate movement in Brazil. This is the first time since March of 2004 that the dollar quote fell below $3, closing at R$2.967 (-1.3%).
Crude Oil: Potential Target in Focus
Crude oil bulls had a brilliant day on Thursday, with the oil complex posting strong gains. Brent crude finished at $64.83while WTI closed at $57.66. With the market sailing above the 100-day MA last week, a review of the continuation chart gives a perspective on what the bulls might be targeting in the longer term. […]
Nat Gas EIA Preview – 22 April 2015
It appears shoulder season is coming to an end in the natural gas markets. NOAA’s 6-10 and 8-14 forecasts are showing above normal temperatures for the western half of the nation. These temperatures have the chance of shifting east giving the US its first taste of summer. Shoulder season is a time during the spring […]
Avoiding Costly Mistakes in CTA Trading: Key to Consistent Profits
Success in trading is measured in terms of the growth of the account balance. A CTA is not expected to play God and call every twist and turn in the market correctly. Some professional and proven CTA systems are only correct 25-30% of the time and still consistently pull huge profits out of the markets. […]