Malachi Capital Management : Malachi Red Deer Program

Summary

The Malachi Red Deer program trades lean hog seasonal spreads and outright positions. It is primarily a discretionary program, with technical components focused on trade entry and exit points. Trade duration for seasonal spreads is generally from three to six weeks, though individual legs of a particular spread may be modified over time to establish a new spread position. Many positions may be considered "scalps" that are completed intraday or are held for a short period of time to take advantage of market anomalies.

Investment Strategy

The Malachi Red Deer program is designed to exploit the trader's three decades of experience in Chicago’s hog trading pit and his fundamental knowledge of hog, cattle and grain markets. The program is based on the trader's personal account trading methodology and was recently revised to exploit more volatile market conditions. The trader’s own account is traded at a level of $4 million in the program alongside investor accounts, and average pricing is used for all trades. See information brochure for complete details.

Risk Management

Malachi’s overall risk management approach is centered on sound money management methods and risk calculations for all trades. Malachi calculates risk subjectively by analyzing fundamental and technical factors (such as volatility, open interest, seasonal influences, supply and demand, news events, etc.) in light of its money management techniques.