Blue Bar Futures Trading Management LLC : Blue Bar Prime Ag Program

Summary

Blue Bar Futures utilizes a combination of technical and fundamental analysis in its trading methodology, while incorporating risk management considerations. The Advisor trades both futures and options, primarily in the agricultural sector of the U.S. commodity exchanges.

Investment Strategy

The Blue Bar Prime Ag Program seeks to achieve capital appreciation through the execution of outright long/short and spread strategies identified by technical and fundamental analysis augmented by risk management principles employed by the Advisor. The strategy employs both fundamental and technical analysis to identify potentially low-risk trade opportunities. The trade execution methodology used for the program is based on a process that is approximately 60% systematic and 40% discretionary. Trade duration for spreads varies widely, from one to three days up to several months; though individual “legs” of a particular spread may be modified over time to establish a new spread position. In extreme market situations, a spread may be converted to a directional position for a relatively brief period of time. Many spread positions may be considered “scalps” that are completed intraday or are held for a short period of time, designed to take advantage of a market anomaly. Certain relatively small spread positions may also be held for longer periods of time, to attempt to capture a potential opportunity outside of typical seasonal spread patterns.

Risk Management

The Advisor monitors both fundamental and technical factors associated with each trade on a continuous basis, and a 3% to 5% adverse movement in the underlying commodity's price would generally be cause for liquidation of the trade.