Sovereign Managed Futures : Domestic Program

Summary

-Our trading philosophy is centered around taking advantage of the fundamental supply and demand forces which act on commodities markets. By quantifying fundamental influences on the market and weighting them appropriately, we feel we can take advantage of long term trends earlier which increases our overall winning percentage of trades. Our proprietary statistical model is the primary means by which we quantify fundamental influences on the commodities markets. These relevant factors are used as inputs in to a logistic regression. As these factors have less or more influence on prices, their coefficients are weighted differently as a result of the regression equation. This allows the model to adapt to changing market conditions. This system, in conjunction with rigorous money management techniques, provides a winning strategy for our clients. Our statistical model gives our firm an edge over other CTA's in the long-term, trend following space. The model allows us to increase our winning percentage of trades over 5-10% higher than traditional trend followers. This higher winning percentage is achieved since our model quickly identifies the early stages of a trend.