Advanced Arbitrage Concepts

United States-flagUnited States Type: Commodity Trading Advisor (CTA) Registrations: NFA ID: 85035
Program Past 12 Months Oct YTD CAROR WDD AUM Min Inv Visits
Advanced Arbitrage Concepts Account 1 archived programs chart thumbnail -5.77 3.99 -12.21 $ 500k 10796
Advanced Arbitrage Concepts Account 2 archived programs chart thumbnail 0.00 4.74 -23.06 $ 100k 10604

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

This program engages in arbitrage trading in the international energy markets. Specifically energy futures contracts listed on The International Commodity Exchange known as ICE and energy futures contracts listed on NYMEX will be traded in this program. Since the program utilizes arbitrage techniques it is always long contracts on one exchange while being short similar contracts on the other exchange and/or vice versa. There may be a fractional amount of a contract net long or short due to rounding because the contract sizes on the two exchanges are not an equal match. The essence of the program is to attempt to take advantage of both random and structural differences in the price movement in the spread between these contracts as opposed to trading the outright or flat price of the energy contacts. The program uses a mathematical model which reads live price data from the exchanges and creates an index which in turn generates buy and sell signals. Traders review these signals against a list of criteria and then utilize both traditional and high frequency trading venues to enter and exit transactions.