Matador Holdings, LLC : Diversified Commodity Program

Summary

Matador Holdings LLC is a momentum based registered Commodity Trading Advisor firm that focuses on short-to-medium term trends. Trades are structured primarily using futures and options on futures with the down side risk as the driving factor in how trades are placed. Matador tracks many markets to determine tradable assets based largely on probability of profit and reasonable risk-to-reward ratio. Trades that meet our risk parameters are initiated using futures and options on futures, typically in a hedged structure.

Risk Management

The success of any trading program relies heavily on the risk management used in implementing the strategy. The Matador approach concentrates on the following concepts: • Trades are structured based on the downside risk quantified on each trade. •Position sizing. Conservative percentages of bankroll are allocated per trade. •We survey a wide range of trading instruments but do not trade those which exhibit poor liquidity. We try to ensure a position can be entered easily and exited at any time. •We trade multiple instruments simultaneously to diversify assets and pay attention to correlations between trades. We rarely trade multiple instruments from the same commodity class unless their low correlation is demonstrated. •Diverse options strategies allow us to choose between aggressive or conservative strategies on a trade by trade basis. As a bonus, option strategies often have risk limits built into the trade. •We dynamically manage trades. Trades can be exited or adjusted before irreparable damage is done.