I have been a futures trader for 48 years. For thirty years I traded as an independent “pit” trader on the floor of the Chicago Mercantile Exchange. In my opinion, DISCIPLINE is the number one characteristic of a successful trader at all levels.
Today, I manage Worldwide Capital Strategies, LLC. Macro-World Programs, which ranked in the Top Ten for Net Return for all CTAs in 2016 and for the preceding 36 months according to BarclayHedge. Past performance is not necessarily indicative of future results.
I’m often asked, “what is your special sauce?”
We are diversified. We’re consistent. We’re 90% systematic with a 10% money management overlay. We trade 23 of the largest and deepest world futures contracts in all seven sectors of the economy. We are medium to long-term trend followers. “We cut our losses short and let profits run”. We set an immediate stop loss on every trade at 2% or less. We are nimble. We limit our size to a level where we can trade in the over-night markets. We don’t need to scale in and out of trades.
We’re not predictive, we are reactive. I don’t know anyone who does a very good job of predicting the markets over the long run.
We are realistic. We know that we will go through periods when the market is just not conducive to our approach, in other words there is a dearth of trends. Managed futures trend following is not an easy approach for investors. Unlike the stock market which goes for months and often years moving steadily higher, with brief periods of horrific drawdowns. Managed futures often make a little or lose a little over a long period of time, with brief periods of spectacular returns. Happily, managed futures trend following is often doing its best when the stock market is at its worst.
“But, I still didn’t hear about the special sauce.”
I thought that was obvious. We are …DISCIPLINED.
Tom Reavis
President
Worldwide Capital Strategies
The content of this article is based upon the research and opinions of Tom Reavis.
There is a risk of loss in trading futures. Futures trading is not suitable for all persons.
While managed futures can help enhance returns and reduce risk, they can also in fact result in further losses in a portfolio.
Studies conducted of manage futures as a whole may not be indicative of the performance of any individual CTA.
A CTA index does not represent the entire universe of CTA’s, individuals cannot invest in an index itself and actual rates of return may be significantly different and more volatile than those of the index.
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
ADDITIONAL DISCLAIMER: The risk of loss in financial investment can be substantial. Each prospective investor must carefully consider the risk before participating in Worldwide Capital Strategies’ (WCS) investment programs. Investors should not open a managed account unless they are able and prepared to bear the risk of investment losses. The information provided herein is for general information purposes only and should not be construed as a solicitation of WCS discretionary management services or, a recommendation of a specific investment action. WCS does not guarantee the performance of its investment programs.
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