Strategic Global Advisors LLC : Global Select L/S

Summary

The Global Select LS Program is a short-term, low-vol, absolute return strategy. The program employs a systematic framework to generate trade signals and utilizes discretion to enter and exit the markets. Trades tend to be short-term in length, averaging less than five (5) days. The primary objective of the program is to generate consistent returns while tightly controlling risk.

Investment Strategy

The Strategic Global Advisors L/S Program employs a discretionary trading strategy which utilizes a systematic framework to participate in both the long and short side of the global futures markets. The program is comprised of four (4) separate models: market entry, stop-loss, profit taking and money management. Each model is based on basic principles of market psychology and price action abstracted from thirty (30) years of market analysis and trading experience. The primary objective of the program is to generate consistent profits while controlling risk and maintaining low downside volatility. Each model was developed with this objective in mind. Risk management is integral to the strategy with a bottom up focus on limiting exposure and tightly controlling losses for each individual position, which, when combined with diversification, yields a robust risk/reward profile.

Risk Management

Risk management consists of several elements. Exposure is determined for each market according to volatility and maximum risk calculations. Positions are taken when trading setups are perceived and an optimal entry is presented. Otherwise the position is out of the market. Each trade is followed continuously and stop levels adjusted according to price action. Any add-on positions are treated as separate trades with their own stop levels and profit targets. Generally approximately from 2 to 10% of the client’s assets may be devoted to margin commodity positions, but greater or lesser levels ranging from zero to a soft limit of 20% may be committed during transitory market conditions.