CTA Selection

If an unskilled person attempted to practice law or medicine, he would probably perform quite poorly, just like many non-professional and unskilled "do it yourself" futures traders. So it comes as no surprise that in the highly complex and challenging field of online commodity futures  trading, the vast majority of non-professional, amateur traders do lose. In fact, we often hear statistics that as much as 90% of these "do it yourself" futures traders wind up losing. However, more experienced professional Commodity Trading Advisors (CTA’s) have been shown to achieve substantial, highly attractive returns.

Studies have shown professional Commodity Trading Advisors do experience an appreciably higher success rate than the individual amateur trader. The fact is, there are numerous Commodity Trading Advisors with consistent returns achieved through prudent money management! You are, however, subject to the risk of loss no matter who is managing your money.

The establishment of global futures exchanges and the accompanying increase in actively traded contract offerings have allowed CTAs to diversify geographically as well as by product. For example, through CTA managed accounts, investors can participate in a wide variety of different markets worldwide, including stock indexes, financial instruments, agricultural and tropical products, precious and nonferrous metals, currencies, and energy products. CTAs offer ample opportunity for profit potential and risk reductions among a broad array of non-correlated markets.

investorseurope’s CTA selection process is rigorous and primarily guided by seeking traders who practise sound money management while producing consistent returns. To us, capital preservation is a prerequisite for capital appreciation.

Some of the specific criteria we generally look for in selecting the best CTAs are:

1. Absolute return

2. Risk-adjusted returns

3. Volatility

4. Consistency of return

Every month we publish our free CTA watch list with a selection of CTAs we believe are of interest as well as a multi-advisor portfolio. In order to receive the information please contact us. 

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