This A Brief Outline Of What A CTA Is And What They Do.
Commodity Trading Advisors (CTAs)
Managed futures is the professionally-directed, systematic or discretionary trading that offers access to the dynamic global futures markets through the use of professional money managers called Commodity Trading Advisors (CTAs). CTAs are federally licensed and registered, who manage investors' assets using investments in the commodities markets just as a stock mutual fund manager would invest his clients' assets in a variety of different stocks.
CTAs use their own proprietary trading methods and money management techniques to establish market positions in commodity, financial futures and foreign currency markets around the world. This broad geographic exposure allows for participation in market trends and economic events worldwide. Futures exchanges exist around the world, resulting in the around-the-clock opportunity.
Most CTAs follow a long-term plan based on extensively tested research designed to try to limit losses while letting profits run. They commit full-time attention to markets, this is their only job. Many CTAs follow a definitive system, which may look at market prices and trends, therefore acting immediately upon signals and market knowledge. CTAs expect both winning and losing trades. Neither result will influence CTAs to deviate from prudent money management and his trading plan.
According to numerous studies, including a survey by John Walsh, author of Master Brokers, Commodity Trading Advisors experience an appreciably higher success rate than the individual amateur trader.
The Value of Professional Management
- Full-time dedication to markets
- A disciplined trading approach
- Money management techniques that seek to control losses and protect profits
- Sophisticated trading strategies
Here is the monthly performance of a randomly selected Managed Account that is traded by a CTA.
Monthly Performance
| Year | JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | DEC | NOV | YEAR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 13.37 | 1.03 | 14.54 | ||||||||||
| 2009 | 6.49 | 3.91 | 5.06 | 6.86 | -8.27 | 14.58 | 6.16 | 4.42 | 2.2 | 0.04 | 3.72 | 9.17 | 67.56 |
Managed Futures are typically for high networth investors. The popularity of Managed accounts have grown at an amazing rate over the last several years due in part to the liquidity, transparency, and their ability to compliment and enhance existing portfolios. Managed Futures accounts are traded by liscenced CTA'S or Commodity Trading Advisors. Typically CTA's are looking to return LONG-TERM steady growth for their clients. There are endless types of strategies and markets that can be traded, many that are non-correlated to the equity markets. For example, a CTA could trade everything form Grains, to Financials, to Metals, to Energies and more. For More information on Managed Futures feel free to contact me or click on the link below for a free CME report on Managed Futures.
http://www.zaner.com/3.0/mmckManaged1.asp
Thanks,
Matt Mckinney
312-277-0115
THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN HAVE THE EFFECT OF SUBSTANTIALLY MAGNIFYING POTENTIAL LOSSES AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX ARE SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS ARE READILY AVAILABLE BY CLICKING ON EACH CTA'S "REQUEST DISCLOSURE DOCUMENT" BUTTON. THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PROSPECTIVE CLIENTS SHOULD NOT BASE THEIR DECISION TO INVEST IN THESE TRADING PROGRAMS SOLELY ON THE PAST PERFORMANCE PRESENTED. ADDITIONALLY, IN MAKING AN INVESTMENT DECISION, PROSPECTIVE CLIENTS MUST ALSO RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY MAKING THE TRADING DECISIONS AND THE TERMS OF THE ADVISORY AGREEMENT INCLUDING THE MERITS AND RISKS INVOLVED.
