WHAT ARE MANAGED FUTURES?
Managed Futures refer to professionally managed accounts, traded by registered Commodity Trading Advisors (CTA’s). CTA’s can go long or short, in a wide range of instruments including grains, meats, metals, interest rates, currencies, energies, and stock indices. They trade a broad range of strategies in varying time frames and offer diversification and opportunity for enhanced returns.
Managed futures traders are typically looking to capitalize on market trends that persist from supply/demand imbalances in the marketplace. With the ability to go both long and short, managed futures have the potential to profit in any economic
environment, and often perform best in crisis periods or uncertainty.
DIVERSIFICATION BEYOND STOCKS AND BONDS
Managed futures have virtually no correlation to traditional asset classes such as stocks, bonds, cash, and real estate, making them a powerful tool in your diversification arsenal. And with over 150 different markets worldwide, managed futures make global diversification simple.
INVESTMENT FLEXIBILITY DURING UP AND DOWN MARKETS
Managed futures have the potential to limit losses and generate strong returns even when the stock markets are falling or in crisis. During periods of economic stress — inflation, deflation or recession — managed futures can take long or short positions to capture positive returns.
THE POTENTIAL TO INCREASE RETURNS WHILE REDUCING VOLATILITY
Managed futures offer a smart way to balance risk with returns. When added to a traditional stock and bond portfolio, managed future may be able to reduce overall portfolio risk and volatility while simultaneously enhancing performance, as shown in the table below.
| 100% US EQUITIES1 | 100% MANAGED FUTURES2 | TRADITIONAL (60% EQUITIES1 / 40% BONDS3) | 80% TRADITIONAL / 20% MANAGED FUTURES2 | |
|---|---|---|---|---|
| CAGR | 9.65% | 7.09% | 8.69% | 8.55% |
| MAXDD | 50.95% | 11.94% | 29.86% | 22.68% |
| STD DEV | 14.64% | 9.04% | 9.29% | 7.35% |
| MAR | 0.19 | 0.59 | 0.29 | 0.38 |
| SHARPE | 0.45 | 0.45 | 0.61 | 0.76 |
Period: 1990-2014. Data used:
1. US Equities: S&P 500 Total Return
2. Managed Futures: Barclay BTOP-50 for period 1990-1999, Newedge CTA Index 2000-2014
3. Bonds: Vanguard Total Bond Index Fund (VBMFX)
MANAGED FUTURES DATABASE
Access our managed futures database to search through hundreds of programs. Check each program’s details — strategy description, full performance results, stats and charts. Build your personalized watch lists and portfolios of the programs you want to track.
A GREAT WAY TO GET ACCESS TO TRADING TALENT AND PERFORMANCE IN A MORE HANDS-OFF APPROACH.
With Wisdom Trading’s managed futures database, we help you select the right professional Commodity Trading Advisor to manage your account. We’ve selected the industry’s leading managed futures programs in our database, in which you can:
- Analyze and Download Full Performance Reports
- Filter Programs via a Powerful Search to Fit Your Investment Criteria
- Save Programs to a Watchlist to Track Managers
- Build Custom Portfolios and analyze their performance
Detailed Report Sheet for Each Program
Along with the program’s strategy description and manager bio, the report sheet contains detailed info, with charts and stats analysis:
Powerful Search Functionality
Type of strategy, Risk and Return stats or portfolios composition are all filters available to refine your CTA search to match your own investment criteria amongst the hundred of funds selected by us in the database.
Create Your Own Customized Watch List
Add any managed futures programs you want to to track, and access the watchlist screen giving an overview of the latest performance.
Powerful Search Functionality
Type of strategy, Risk and Return stats or portfolios composition are all filters available to refine your CTA search to match your own investment criteria amongst the hundred of funds selected by us in the database.
Build Portfolios and Simulate Custom Multi-Programs Blends
Create portfolios with allocations to different CTAs from the database and/or upload your own instrument data.
Wisdom Trading is an NFA-registered Introducing Broker. We offer Global commodity brokerage services, managed futures consultation, direct access trading, and trading system execution services to individuals, corporations and industry professionals. As an Independent introducing broker we maintain clearing relationships with several major Futures Commission Merchants around the globe. Multiple clearing relationships allow us to offer our clients a wide range of services and exceptionally wide range of markets. Our clearing relationships provide clients with 24hr access to futures, commodities, and foreign exchange markets around the globe. Futures trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.