If you are interested in trading primarily for the possible returns it can provide, you should consider adding managed futures to your portfolio. Managed futures are professionally managed futures accounts.
What Are Managed Futures?
The term managed futures describes an industry made up of professional money managers known Commodity Trading Advisor's (CTA's), who are registered with the Commodity Futures Trade Commission (CFTC) and with National Futures Association (NFA). The NFA is an industry self-regulatory agency. CTA's must submit to the NFA for review disclosure documents and financial statements. The CTA does the actual trading for a managed futures account. In return for this the CTA will receive some combination of a management fee, an incentive fee (percentage of the profits), and a share of the commissions.
To better understand the why you should consider managed futures, it is helpful to review some common reasons why people lose money trading futures:
By using managed futures we can attempt to eliminate the reasons that the average trader loses. As noted in the Chicago Board of Trade's Guide to Managed Futures, managed futures, by their very nature, are a diversified investment opportunity. The CBOT guide states that benefits of managed futures within a well-balanced portfolio include:
Disadvantages of managed futures:
The main concern of most investors will probably be turning over the trading decisions to another person, if you are able to do this managed futures maybe an alternative investment worth considering.
Walsh Asset Management, LLC. provides customers access to managed futures. This access is designed to assist institutions and individuals with portfolio diversification, construction and to introduce them to alternative investments. Through our licensed representatives, we are able to offer clients private and public managed products such as commodity trading advisor programs and systems trading programs.
Walsh Asset Management, LLC. tracks and executes trading systems and CTA products covering a wide range of markets and trading styles. Contact a Walsh Asset Management, LLC. Representative at (800) 213-5872 or (312) 373-4867 to help place you in the program or combination of programs to meet your specific goals based on your trading profile.
Managed futures products can be used by all type of Walsh Trading Futures accounts including IRA, Pension and Trust accounts. Let an Walsh Asset Management Consultant help you select the correct CTA most appropriate for your unique investment needs. You can contact us at (800) 213-5872 or (312) 373-4867.
The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this market letter be construed as an express or an implied promise, guarantee or implication by or from Walsh Trading Inc.,or Walsh Asset Management,LLC, that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance.
Disclaimer: This web site and publications contained within is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures and options trading involve risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this market letter be construed as an express or an implied promise, guarantee or implication by or from Walsh Trading, Inc., or RJO Brien that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance.
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