Category: Managed Futures Education

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Managed Futures Education

Measuring the Edge of Entry Signals in Trading

When a CTA or Money Manager is testing or back-testing their entry signals, one of the most important aspects they look at is if the technique’s they are using have a distinct “edge” for the time frame they are trading (short-term, swing, long-term, etc.). Positive price movement is when the market goes in the direction […]

Managed Futures Education

The 4 Biggest Errors in Trading a CTA Could Make

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 at all times. As a matter of fact, some professional and proven CTA’s systems are only correct 25-30% of the time and they […]

Managed Futures Education

Six Keys To Trading A Commodity Trading Advisor Knows That You May Not…

Most professional CTA’s look and think about trading in a much different way than an average trader or investor would, and the reason for this is not hard to understand.  If a CTA is successful what it means to me is that they have dedicated their lives to the craft.  Every trader wants to be […]

Managed Futures Education

The Advantages of Professional Traders in the Futures Market

I know a lot about grains. In fact, I know much more than the average person about energies, metals, currencies, softs, and financials. I would never try to trade any of them for customers for a simple reason. I know others who have done nothing for most of their careers except focus on each area. […]

Alternative Investment Strategy Managed Futures Education

Understanding the Long Put Option: Advantages, Disadvantages, and Trading Steps

Buying (Long) a Put Option:A basic options strategy to be familiar with and learn the advantages and disadvantages of is Buying a Put Option (Long Put). Buying a Put option is the opposite of buying a call option in that a Put gives you the right, but not the obligation, to sell the underlying futures contract at a specific […]

Managed Futures Education

How do you use Basis to Hedge?

Cash Price – Futures Price = Basis (at a specific point in time) A producer’s decision as to when and how to market their crops or livestock can have as significant an impact on their net bottom line profit as any production decision they may make throughout the year. Farmers today have more marketing alternatives […]

Managed Futures Education

Overcoming Mental Blocks to Investing: Part 2

In my previous article, we reviewed the first seven of 13 “mental blocks” to investing an average CTA or investor may butt up against throughout trading or investing. To continue from where we ended off in the previous commentary, we will cover the final six biases and blocks that may affect how a CTA tests […]

Managed Futures Education

Quiet Session in Soybeans. Calm Before the Storm?

A tranquil session today in the soybean market, with soymeal taking a backseat to oil. The nearby soybean spread May 15 vs. July 15 strengthened even with abundant total U.S. supplies in the picture. We have now seen Chinese imports lagging the year-ago pace for the last three consecutive months, with the cumulative seven-month import […]

Commodities Commodity Trading Advisor Investments Managed Futures Education risk management Trading

Overcoming Mental Biases in Trading and Investing

Average CTA’s, investors, and people generally have an overwhelming desire to be “right.” Who likes to be wrong? You read and hear daily from friends, and fellow traders (spouses – J), how important it is to be correct, especially when they make a market prediction or, even worse when they put real money into a […]

Managed Futures Education

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 […]

Managed Futures Education

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? […]

Managed Futures Education

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 […]

Managed Futures Education

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 […]

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