Commodity Futures
Trading Approach
- Every trade is a calendar or inter-commodity spread
- All trades are hedged with a long contract that is offset by a short contract.
Trading Hold Time
- Trades are scheduled to be held from 12 days to as long as several months.
- The longer the hold time the higher the profit win rate.
Trading Style
- The Smart Spreads strategy does NOT have a “get rich quick” approach.
- The best description of the strategy is “slow and steady wins the race”!
Trade Volatility
- Futures involve a substantial risk of loss and can be extremely volatile.
- Risk management is an important part of the strategy.
Risk Management Tactics
- Spread exposure across many markets.
- Minimize expiration month gaps.
- Trade out on calendar.
- Limit exposure to any market or subgroup.
BHAG
- Big Hairy Aggressive Goal
- Profit on 65% of trades closed.
- Achieve a $ win to $ loss ratio of 1.4 : 1.
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT