Diversified Trading Program
BCM's trading program is built around the strategies that Fred Schutzman and Paul DeMarco, Jr. have developed since 1991. These trading strategies are technical in origin and primarily trend-following in character, and are designed to identify intermediate market moves.
BCM simultaneously trades between two and eight trading systems independently. Each system serves a unique purpose and is applied to a diversified portfolio of commodities in a predominantly quantitative or mechanical fashion. A primary focus is on controlling drawdowns.
BCM will generally commit less than 6% of equity to margin. However, on special occasions, this percentage may be substantially higher or lower.
Daily trading signals are systematically generated by BCM’s computerized models. Each model must have a valid concept behind its trading logic. The key determinants of a model's suitability are its impact on our overall equity curve and its risk-adjusted returns.
BCM follows most commodity futures and forward markets worldwide and currently trades over 60 markets. The
following groups are represented at this time: Grains, Metals, Energies, Softs, Interest Rates, Currencies and Equities. Modifications to the above are based on the result of many hours of research, amount of assets under management and liquidity concerns. There are no restrictions or limitations on what markets BCM may or may not trade. BCM will notify clients if there are material changes to the trading program.
As assets under management grow, BCM may expand its currency trading. BCM does not currently trade options
on futures and has no immediate plans to do so, but reserves the right to trade options at any time in the future. There are no restrictions or limitations on what commodity interests or other interests BCM may or may not trade.
Research is a crucial component of our trading enterprise. This is an area where we feel that we excel. Our approach is quite different than that of most other firms, with the bottom line being hypothetical results on paper that we feel are honest and have a fair chance of being achieved in real-time. Thus far, our actual performance is matching our hypothetical test results.