Longwood Capital Group LLC : Longwood Opportunity Strategy

Summary

The Longwood Opportunity Strategy discretionary in nature, with trade decisions based on proprietary statistical and technical analysis. The trading program focuses on spread strategies in the grain markets, and also effectively utilizes certain spread models in the equity indices, primarily the E-mini S & P. The strategy seeks profit opportunities as they arise and is not limited to spread trading, as outright futures and/or option positions may be taken.

Investment Strategy

The Longwood Opportunity Strategy is implemented by a veteran options trader whose extensive experience in the fundamentals of commodity markets is paired with proprietary statistical modeling in constructing numerous types of spreads, including calendar spreads, butterflies, and volatility spreads. The strategy evolves with changing markets and positions, and can be scaled into or out of as favorable profit opportunities arise. Additionally, it may take advantage of short-term market opportunities by scalping when market inequities are identified. On occasion LCG will enter into directional trades based on proprietary statistical or technical indicators. While trade creation relies on proprietary statistical analysis, entry points are based on technical analysis of both historical and current market conditions. Exit levels are discretionary, and determined by a preset combination of timing, technical and occasionally fundamental triggers.

Risk Management

Risk management is an essential component of the Longwood Opportunity Strategy and multiple factors are considered when assessing risk. The strategy utilizes a multi-faceted approach to risk, which takes into consideration a wide range of fundamental, statistical and technical factors. These factors are built in at trade initiation and applied while the trade progresses. Most importantly, multiple risk management tools are utilized to monitor existing trades in ever changing markets. Trade management is dynamic, both from an opportunity and risk perspective. The dynamic nature of the strategy results in the increase or decrease in specific aspects of position exposure to either capture more opportunity or mitigate risk given current market conditions.