Futures Truth Company, FTC-CTA : MS4 Institutional

Summary

At FTC, research has been the cornerstone of everything we’ve done for the last 25 years. It is our mission to develop technical trading strategies that deliver competitive returns for our clients with minimal risks. Diversification and a robust multiple strategy approach are the driving factors in our research platforms. We diversify our approach by utilizing diverse, non-correlated strategies that allow us to achieve the optimal combination of profits and risk control. Further diversification is delivered through differing strategies, portfolios and time frames. Our objective in our quantitative systems is to deliver non correlated returns to the S & P index and other CTAs. The foundation of our investment philosophy is to deliver outstanding returns regardless of the state of world economies.

Investment Strategy

The MS4 is a lower leveraged product. Four strategies work to diversify, not only in portfolios, but also in the trading style and holding periods. One strategy is extremely short term, two are intermediate term and one is longer term. The manager, FTC, specializes in the development of trading strategies across diversified portfolios through rigorous quantitative studies of a large data base of historical prices. FTC programs are designed to have a low correlation to trend following strategies. FTC utilizes counter trend, pattern recognition, channel trading, and momentum analysis among other things to systematically trade futures. Positions are held for an average of 2 days to 2 months.

Risk Management

The managed Futures portfolio’s targeted return to risk ratio is estimated to be two to one. The objective is to deliver returns of approximately 15-20% per year with a targeted drawdown of 10-15%.