Commodity Arbitrage Program
The Commodity Arbitrage Program grew out of our company's principals' proprietary trading since 2003 as well as our collective rich quantitative modeling experiences. The program uses statistical methods to identify trading opportunities in commodity calendar spread markets. (Calendar spreads are pairs of future contracts of same commodity but with different futures expirations. An example of a calendar spread for WTI crude oil would be long December 2018 WTI crude oil while at the same time short November 2018 WTI crude oil contract). In general we do not trade the directional underlying commodity market unless we have strong signals with conservative risk limits.
The program currently trades futures contracts in Natural Gas, Crude Oil, Gasoline, Heating Oil, Live Cattle, Lean Hogs, Wheat and Corn.