Schot Capital

Mini Diversified Program (MDPe)

Minimum Investment
$ 100,000
Management Fee 1.00%
Performance Fee 20.00%

Summary

The Mini Diversified Program offers a bespoke service based on an advanced Trend Following model, with a depreciating discretionary input as assets grow. After numerous requests and subsequent research, I finally came up with something interesting in terms of running a professional Trend Following system with a relative low account size of 100k. We start with a two speed TF strategy (long term/short term time frame) for the first year or so, during this initial period there will be not much trading activity simply because the system will skip most markets because the volatility/$ risk is too high, but as AUM grow´s we start diversifying into additional strategies/markets and de-leveraging, unless desired otherwise by the investor. Given the fact that we are growing a relatively small amount I will also use discretion, mainly in terms of taking money off the table. As AUM grows and we are in a more comfortable position with the account, this discretionary input will eventually be reduced. The start of a new account is where most risk is at on original capital, but with patience we will be able to grow the account significantly. In general, I tested every two-year period between 1990 to date with a constant leverage, and in none of those 2yr periods there has been a significant drawdown. I first tested even periods 90-92. 92-94, and so on, which look better than the uneven periods 91-93, 93-95, etc. During even years the initial 100k investment got as low as 90-95k. But I prefer to present the periods that look worse. In the back test, 2017-2019 was the worst period bringing your 100k equity down to just under 80k. Very unlikely this is going to happen, but I would just take that into account as a worst-case scenario. Like I said, don´t expect much activity during the initial phase of the program. The idea is to slowly reduce leverage as assets grow, and to start adding (diversifying) markets/systems until at some point in time we can fully commit to the original Multi Diversified Program. The single strategy is an advanced breakout system with a MACD overlay, robust risk and management parameters, and additional filters. Maximum holding time is around three months if a position is not prior exited based on stops in place/further exit rules and/or discretionary input. Sectors monitored/traded are Currencies, Interest rates, Metals, Grains, Softs, Meats, and Carbon emissions. Due to the more labor sensitive input I reserve the right to close this program for new investments. Contact me at jacob.job.schot@gmail.com to discuss further. Thank you.