Our futures trading system investments give our clients the opportunity to participate and potentially profit from fluctuations stock indices, currencies, commodities and bonds across the major international futures markets of Asia Pacific, Europe and North America.
Our clients are able to select from a wide range of different futures trading systems across different markets so that the client with the help of an SCM advisor can construct a portfolio of futures trading systems that fit’s with the clients needs, based upon the clients financial and risk profile. We believe that a portfolio of trading systems across different geographic timezones, asset classes and system timeframes offers our clients the best risk:reward profile possible from this type of trading.
Our automated futures trading systems seeks to aggressively trade short term and medium term fluctuations in an underlying market such as a stock index or currency. In our trading we make use of both technical and quantitative analysis with each system back-tested on historical data, both insample and out of sample so that we can provide you with a robust and potentially profitable solution going forward. As with any futures system the product is inherently leveraged which provides the opportunity for larger than average returns, however this comes with additional risk and the leveraged nature of the investment means that futures are considered high risk. We might add however that whilst a buy and hold share portfolio more than halved during the most recent bear market our systems did very well and to date have offered a higher return, for less risk. In saying that buying a portfolio of shares and trading one or more of our systems in association with a share portfolio is a very good idea as our systems could potentially reduce the downside risk.
The majority of our systems look to take short term 1-5 day positions when certain conditions offer what is termed a ‘positive expectancy trade’. The trading strategies look at inter-market relationships, fundamental analysis, seasonality, public sentiment, volatility and short term patterns. These trades may be both long or short and can therefore profit in both bull and bear markets. The trading systems are ‘long volatility’ systems in that they offer superior performance during periods of high volatility and periods of underperformance during low volatility (which typically occurs suring a bull market).
For the majority of our systems when no opportunities are present client funds are held in cash and generate interest, however some of our systems are designed to be in the market 100% of the time with either a long or short position with any non-margined funds generating interest for the client. The system decription will provide you with information on whether or not a system is in the market 100% of the time and whether or not the system is suitable for your financial or risk profile.
We manage the risk of loss on client account through the use of money management and stop losses. Our money management techniques keep our clients position sizing to within acceptable levels so that in the event of loss or drawdown losses are kept to within acceptable levels. In addition the use of a stop loss which limits losses to a certain amount may be utilised where appropriate, particularly in day trading systems.
