Program Description
The goal of the Maximum Alpha managed futures program is to achieve consistent, above average, compound annual returns,
and consistent superior long term capital appreciation with relatively low volatility and without being dependent on or
correlated with the direction of financial markets.
We look for trading opportunities that provide the following:
We look for trading opportunities that provide the following:
1) Magnification of gains when we are correct.
2) Strategies that can be profitable over a wide range of prices.
3) Strategies that can sometimes make money when our prediction of market direction is wrong.
2) Strategies that can be profitable over a wide range of prices.
3) Strategies that can sometimes make money when our prediction of market direction is wrong.
Investment Process
To accomplish these objectives, TechTrading uses proprietary fundamental and technical timing models to indicate whether any given
equity market, bond market, currency market, or market sector present a positive investment environment. Assets are only allocated to
those areas showing the most favorable environment according to these models.
TechTrading is dedicated to achieving superior risk-adjusted returns by following a two-part investment strategy which combines fundamental analysis with technical analysis (Macro-Timing). TechTrading relies on a proprietary systematic trading model to determine the timing of when to take trading positions.
The firm closely monitors economic indicators to determine the relative strength and weakness of the economy, and considers other factors specific to the market being traded, such as government policy, investor sentiment, supply/demand, and relative valuation. TechTrading considers the underlying economic fundamentals and uses sophisticated computerized trading systems to:
TechTrading is dedicated to achieving superior risk-adjusted returns by following a two-part investment strategy which combines fundamental analysis with technical analysis (Macro-Timing). TechTrading relies on a proprietary systematic trading model to determine the timing of when to take trading positions.
The firm closely monitors economic indicators to determine the relative strength and weakness of the economy, and considers other factors specific to the market being traded, such as government policy, investor sentiment, supply/demand, and relative valuation. TechTrading considers the underlying economic fundamentals and uses sophisticated computerized trading systems to:
1) Monitor market trends and overbought/oversold levels,
2) Optimize trade entry and exit points,
3) Model futures and option structured positions to manage risk, and enhance profitability, and
4) Compute price/time probability, and
5) Consider a market’s correlation to other markets being traded, in order to manage overall risk of the portfolio.
2) Optimize trade entry and exit points,
3) Model futures and option structured positions to manage risk, and enhance profitability, and
4) Compute price/time probability, and
5) Consider a market’s correlation to other markets being traded, in order to manage overall risk of the portfolio.
In addition to the timing of trades, the investment manager will use discretion to determine which signals to trade, and the structure
of the trades (futures, options, or both), and size of the positions to trade.
TechTrading's approach to trading is to take positions and to assume market risk only when technical models identify high confidence patterns typically associated with profitable trades. This approach may result in the system avoiding trade entries for markets experiencing initial sharp trend changes. The system will wait for a lower-risk entry point before entering the trade in order to minimize the draw-down, and confirm the market’s new trend direction. TechTrading uses trend following systems that incorporate some of the qualities of reversal/trading-range systems, which allow the system to trade in many different market environments.
As a part of our overall investment strategy, we utilize option positions for:
TechTrading's approach to trading is to take positions and to assume market risk only when technical models identify high confidence patterns typically associated with profitable trades. This approach may result in the system avoiding trade entries for markets experiencing initial sharp trend changes. The system will wait for a lower-risk entry point before entering the trade in order to minimize the draw-down, and confirm the market’s new trend direction. TechTrading uses trend following systems that incorporate some of the qualities of reversal/trading-range systems, which allow the system to trade in many different market environments.
As a part of our overall investment strategy, we utilize option positions for:
(1) protecting portfolio positions,
(2) spreading and hedging risk, and
(3) generating additional income on our equity and futures holdings.
(2) spreading and hedging risk, and
(3) generating additional income on our equity and futures holdings.
Our goal is to increase our investing profits without exposing ourselves to unacceptable risks. It is a practical way of investing which
is especially useful when dealing with the challenges of volatile market conditions.
Risk Management
TechTrading strongly believes that return of principle is much more important than return on principle which means we focus more on
minimizing risk than maximizing reward. However being risk averse does not imply that substantial and consistent total returns are not
achievable.
The firm will attempt to reduce risk by:
The firm will attempt to reduce risk by:
♦ using computer models to determine optimal entry/exit points,
♦ limiting involvement in markets with low liquidity,
♦ hedging via the use of options,
♦ limiting position size, and
♦ trading system controlled stop-loss limits.
♦ limiting involvement in markets with low liquidity,
♦ hedging via the use of options,
♦ limiting position size, and
♦ trading system controlled stop-loss limits.
Markets
The Maximum Alpha Program will trade highly liquid futures and options-on-futures contracts. Primarily, the financial
futures markets (index and interest rate futures) will be traded. TechTrading currently does not currently trade commodities listed
on foreign exchanges.
Download a brochure which discusses the managed futures investment program, Maximum Alpha. It will highlight some of the tools/elements of the system.
Download a brochure which discusses the managed futures investment program, Maximum Alpha. It will highlight some of the tools/elements of the system.
Maximum Alpha Managed Futures Program & Facts
INVESTORS SHOULD BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING
FUTURES AND OPTIONS AND SUCH AN INVESTMENT IS NOT SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING
IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY FUTURES, AND
OPTIONS CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE FUTURES AND OPTIONS MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THE DISCLOSURE DOCUMENT BEFORE YOU INVEST, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND FEES OF THIS INVESTMENT.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE FUTURES AND OPTIONS MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THE DISCLOSURE DOCUMENT BEFORE YOU INVEST, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND FEES OF THIS INVESTMENT.
