Managed Futures & Forex Systems
When you invest in managed futures and forex with FuturesBroker.co.uk, you
are utilizing our chosen trading systems to manage your assets on a discretionary basis, by trading
futures and forex.
Due to the high leverage of commodity
trading, speculation in futures and forex is widely thought of as a 'high
risk' investment and, by association, managed futures/forex has been given the
same label. However, this is rather unfair as the latest reports by the CISDM alternative investment database illustrate
that the average annualized
standard deviation of individual CTAs (Commodity Trading Advisors) are, on average, lower than that of
the average deviation of the Dow Jones 30 Industrial Average (27.12%
compared to 29.51%). This shows that the risk of using managed
futures/forex
can, in fact, be less risky than investing in an index-linked, more
traditional stock investment. Moreover, diversifying one's assets amongst a
group of trading systems can further reduce changes in market volatility.
The way in which managed futures or forex positions
are added differ from traditional stock and bond portfolios and hedge funds,
which often tracking indices that reflect trend-following patterns. Referred to as
'absolute return' strategies, the results of managed futures and forex investments are
based on the success of the trading system, not dependent on the long-term direction
of the market.
Systematic Trading
Systems
Systematic strategies are usually
trend-following, although some are countertrend. The systems used can be
short, medium or long-term and can cover foreign exchange, financial, currency or a wide
range of commodity markets. Speculation in managed futures and forex offers investment across a
wide variety of international financial markets. For example, managed futures can offer
reduced volatility of stock and bond portfolios by hedging positions, or they can enhance
stock and bond portfolios that have lengthy periods of limited opportunities, for example
sideways moving markets.
Why?
Because many stock and bond portfolios are required to be
long-only by government regulations. Managed futures and forex systems, on the other hand, can use both long and short
positions and this offers risk/return opportunities not available on the more traditional
investments.
As well as financial markets, many non-financial futures
products can be traded. For example, energy, precious metal and agricultural futures
markets.
Government regulation does mean, however, that trading
futures and forex markets offers the same level of integrity, and safety as traditional stock and
bond investment funds.
If you wish to use
our trading systems to run your managed futures or forex account, click
these links:
Open Managed Systems Futures
Account
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