Managed Futures Strategy

This video demonstrates a simple illustrative example of a Managed Futures alternative strategy. Watch to learn more.


A managed futures strategy is highly quantitative. Once an asset price begins to move, the strategy will take a position in that asset. If the move continues in the same direction, the strategy increases its allocation. If the price trend reverses, the strategy will sell some or all of its position. The strategy is strictly rules-based. It will not have positions in assets that are not showing price movement. Typically, managed futures strategies may accumulate many small losses as positions are opened and rapidly exited when the price action is not confirmed. From time to time, the strategy will deliver a giant profit when a price trend continues for a length of time, and/or accelerates sharply in a particular direction.