The trading program is managed on a top-down basis with the equity curve driving all decisions. No single trade is more important than another - the equity curve and market volatility dictate sizing and stop levels.
- There is a designated cutoff point at which trading is reduced or terminated.
- Most of our strategies are assigned a certain number of contracts to be traded per million dollars under management. In most markets,the number is between 1 and 4 contracts per million under management (using the current volatility measurements).
- The lower the theoretical drawdown of the strategy being traded, the more contracts are assigned to that strategy. Higher volatility strategies are assigned 1-2 contracts per million. Lower volatility strategies are assigned 3-4 contracts per million.
- Thinly traded markets are traded on reduced leverage with the goal being the ability to completely exit a position in one trading day or less.
- For some strategies, the number of contracts vary depending on the market volatility but there is still a baseline number of contracts per million.
Please Note: Futures and options trading involve a substantial risk of loss and is not suitable for everyone.