Eckhardt Trading Company

United States-flagUnited States Type: Commodity Trading Advisor (CTA) Registrations: NFA ID: 0237054
Program Past 12 Months Sep YTD CAROR WDD AUM Min Inv Visits
Global Financial archived programs chart thumbnail 8.53 -16.15 $ 10,000k 3592
Global Financial Plus archived programs chart thumbnail - -5.49 $ 10,000k 2740
Standard chart thumbnail -2.04 3.75 12.77 -27.11 $ 266.5M $ 10,000k 35648
Standard Plus chart thumbnail -2.48 4.06 17.24 -40.39 $ 39.2M $ 10,000k 19944

Past performance is not necessarily indicative of future results. The risk of loss in trading commodity futures, options, and foreign exchange ("forex") is substantial.

CTA Introduction

The objective of ETC is to achieve appreciation of its clients’ assets through speculative trading of “Futures Interests”. ETC primarily engages in trading futures contracts on U.S. and non-U.S. exchanges. In addition, ETC may trade options on futures, forward contracts on commodities and currencies, cash currencies, and may engage in transactions in physical commodities, including EFPs (in addition to EFPs in currencies). The exact nature of ETC’s methods are proprietary and confidential. The following description is, of necessity, general and is not exhaustive. ETC’s trading approach is the product of over 30 years of intensive research on futures price action, risk management and trading system development. Diverse systems are melded in accordance with the modern mathematical theory of risk. The systems are technical in origin and trend following in thrust. They are not based on the analysis of fundamental supply and demand factors.

Manager Background:

William Eckhardt has traded futures professionally for over 33 years. He received a B.A. in Mathematics from DePaul University in 1969 and a M.S. in Mathematics from the University of Chicago in 1970. In 1974, after four years of doctoral research at the University of Chicago in Mathematical Logic, he began trading for his own account at the Mid America Commodity Exchange. Mr. Eckhardt traded off-floor for his personal account from 1978 through July 1991. In July 1986, he began managing accounts for a small number of friends and business associates and in July 1991 he began managing accounts as a registered CTA. In conjunction with his trading, over the past 30 years Mr. Eckhardt has conducted extensive research into the nature of futures price action and risk management. He has developed numerous technical trading systems. Along with Richard Dennis, he co-developed certain trading systems and in 1984 and 1985, subsequently co- taught such systems to a group of individuals that have become known as the (Turtles). Mr. Eckhardt was an associated person of Mr. Dennis from November 1983 to January 1992.

Mr. Eckhardt was a full member of the Chicago Board of Trade from 1983 to 1988 and the Chicago Mercantile Exchange (CME) from 1979 to 1986 and held other memberships at various other times. He currently holds a seat at the CME Index and Option Market. From October 1983 to July 1991, Mr. Eckhardt was a partner of C&D Commodities, which was formerly active as a futures commission merchant and chiefly involved with clearing partner capital, futures research and trading administration. In 1991, the partnership (and FCM) ceased all business operations and C&D Commodities, Inc. (C&D, Inc.) was established to continue the futures research and trading administration activities previously conducted by the partnership. Mr. Eckhardt was an officer of C&D, Inc. until August 1997. In January 2001, ETC took over the employment of the individuals previously employed by C&D Commodities. Mr. Eckhardt directs ETC system development and ongoing research, and along with John D. Fornengo, the president, is responsible for the overall activities of ETC.

John D. Fornengo, a 1980 honors graduate of Lake Forest College, Lake Forest, Illinois, has traded futures for over 21 years. He has been professionally involved with Mr. Eckhardt since the beginning of his trading career in April 1986. In December 1991, he became registered as a CTA and began managing client accounts utilizing the technical indicators of the ETC systems, which he modified with systematically larger position sizes. (These accounts are the basis for the Standard Program - Higher Leveraged.

In January 1993, Mr. Fornengo began working with ETC to assist Mr. Eckhardt in the implementation and execution of the ETC trading program. In June 1995, Mr. Fornengo became Vice President of ETC and in August 1999, he became President. From January 1989 through June 1995, Mr. Fornengo managed a proprietary account for Mr. Eckhardt, the cash balance of which was invested in Eckhardt Futures Limited Partnership in July 1995. He became an associated person of ETC in February 1993, a principal in June 1995 and a branch manager in July 1997. Mr. Fornengo is registered in his individual capacity as a sole proprietor CTA; he has no accounts under management. Mr. Fornengo, along with Mr. Eckhardt, is responsible for the overall activities of ETC. Mr. Fornengo is responsible for trading operations including the implementation and execution of ETC trading programs. Mr. Fornengo and Mr. Eckhardt share in the responsibility of any judgment or discretion utilized for such implementation.