FormulaFund - Systematic Managed Futures

United States-flagUnited States Type: Commodity Pool Operator (CPO)
Commodity Trading Advisor (CTA)
Registrations: NFA ID: 0438066
Program Past 12 Months Sep YTD CAROR WDD AUM Min Inv Visits
Institutional Global Diversified Program archived programs chart thumbnail 11.38 -21.47 $ 500k 1710

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

Trading Description: Broad diversification: FormulaFund trades futures contracts in many different financial centers around the world. Besides financial futures such as bonds, equity indices and currencies, commodities such as natural gas, silver, corn, cocoa and cotton are also traded. This broad diversification ensures that risk is spread across many different markets which behave independently from each other and also increases the number of potentially profitable trading opportunities. Technical analysis: The FormulaFund trading systems use a wide range of technical indicators and historical data to identify price patterns. Based on these trends, the technical trading systems automatically issue buy and sell orders. The fully automated trading systems remove human discretion from trading decisions, effectively eliminating emotional responses to changing market conditions. Trend following: The FormulaFund trading systems are based on “trend following” and “Counter-Trend” principles and seek to identify market trends at an early stage of formation. These trends can last from days to months. Once a potential trend is identified, the system applies filters at the trade level taking into consideration variables such as overall risk capital available for trading and portfolio volatility and then generates a buy or sell signal. Once established, a position is maintained until pre-defined risk measures are met or exceeded. Money management: Consistent risk management is the most important element of the FormulaFund trading strategy. Trading risk is controlled by strictly limiting the size of individual trading positions and cutting losses early. The total risk is continuously screened and drawdowns are limited by daily maintenance of stop orders. In this way, if a trend reverses, losses are theoretically limited, while if a trend continues profits are theoretically protected.