Commodity Trading Advisors

TRADING STRATEGY
The Seasonal Commodities Program is designed to seek out those spread relationships that have been the most consistently profitable in the past. These spread relationships exist both within commodities and across related commodities. There must be a sound rationale based on supply/ demand fundamentals supporting each trade before it is considered. Fundamental factors such as the production cycle, weather affected supply/demand, and seasonal global trade patterns are but a few of these factors that must be considered as supporting the historic seasonal patterns. Statistical analysis is used to determine the probability distribution of profit and loss and optimal stop loss points. A combination of both mean reversion and trend following technical indicators are used to refine entry and exit points based on current market conditions. The cross-correlation between trades is also examined to maintain a well-balanced portfolio of market exposures that optimizes historic returns while attempting to control volatility.

TRADING STYLE: Fundamental / agriculture