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In
this section we have available a series of short clips
to view. The aim is to give an insight into some of
the aspects of computerized system development
and logic.
The
system building software we use in the clips below is
Tradestation. The Tradestation platform allows trading
rules to be expressed in computer code, and enables a
computer to monitor the strategy for alerts or direct
link to global electronic derivative exchanges.
The
first series demonstrates an example of building a
sample system.
• Building a basic system (part 1)
• Building a basic system (part 2)
• Building a basic system (part 3)
We
utilize the optimization capabilities of Tradestation
to validate our trading logic.
• Optimization to validate a strategy
An
argument for trading and equity derivative, compared
to the Buy and Hold approach.
• Trading vs Buy and Hold
The
main benefits of a Managed Futures Account:
- Returns
independent of Share Market Performance
- Reduction
of risk via portfolio diversification
- Zero
entry and exit fees for managed futures accounts
- Liquidity
and transparency.
- Low
correlation to traditional investments such as
stocks, real-estate, and bonds
The
benefits of managed futures within a well-balanced
portfolio include an opportunity for reduced portfolio
volatility risk as well as the potential for enhanced
portfolio returns.
The alternative investment solutions we offer focus
on low correlated investments. According to Dr.
Harry M. Markowitz, the Nobel prize-winning economist
and father of modern portfolio theory, portfolios with
decreased volatility and increased performance can be
created by diversifying among asset categories with
low to negative correlation, such as stocks and
commodities.
Subscribers
to this theory believe an investment portfolio
utilizing the futures markets through trading systems
and managed futures stands to perform better, with
lower overall risk, with the addition of alternative
investments.
Safety:
Investor
funds are under the direct control of the individual
and held in a segregated account at Harris Trust and
Savings Bank or JP Morgan Chase under either Peregrine
Financial Group LLC, or Man Futures customer funds
account.
Liquidity:
The
natural liquidity of futures markets allows investors
the ability to liquidate their investment on very
short notice in most cases. This means your investment
has no lock out period and no minimum term for
investing. While those investors who take a long term
horizon often see better performance results, it is
nice to know your investment can be liquid within a
single day. Liquidity in the U.S. treasury futures for
example, is one of the largest in the world. Chicago
Board Of Trade financial futures trading volumes
average in excess of one million contracts per day.
Transparency:
The
question of “How is my investment doing?” is often
very difficult to answer when investing in some
investments due to a lack of transparency.
Unlike other alternative investments in instruments
like hedge funds or private equity deals where
performance is reported monthly or quarterly; your
managed futures investment is completely transparent,
with the ability to view account statements and real
time market valuations of your account 24 hours a day
through an online system.
Risk
vs Reward:
A
study published by the Chicago Mercantile Exchange
concluded that portfolios with as much as 20% of
assets in managed futures yielded up to 50% more with
comparable risk than portfolios of stocks and bonds
alone. The enclosed graph, "Impact of Incremental
Additions of Managed Futures to the Traditional
Portfolio," provided by the Chicago Board of
Trade, shows that a traditional portfolio (55% stocks,
45% bonds, and 0% managed futures) presents an
investor with the greatest risk and lowest returns.
However, a portfolio comprising 45% stocks, 35% bonds,
and 20% managed futures offers an investor the
greatest returns and least amount of risk.
**
Past performance is not necessarily indicative of
future results
Image provided by the Chicago Board of Trade
• U.S
4.7 Disclosure
• Optimization to validate an approach
• W-8BEN
• W-9
• Midshipman
Services PL - Financial Services Guide
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