Investment Strategy
The program involves “Spread” trades which entails the buying of a futures contract for one month and the simultaneous selling of the same futures contract for a different month. The program leverages 15 years of historical trends combined with current market action to determine the best investment decisions. SpreadEdge makes both long and short investments in a portfolio of domestic commodities.
The SpreadEdge Seasonal Spread Program seeks to capture profitable returns leveraging data analysis of historical seasonal trends.
Reasons to Invest
Diverse Set Of Assets
Ability to Profit Long or Short
Systematic Trading Approach
Low Correlation with Stocks
Calendar Spreads
Seasonal Strategy
A specific calendar period during which a spread has shown a consistent propensity to move in the same direction.
SpreadEdge looks at the past 5 – 15 years to find repeating seasonal and historical tendencies. All positions entered have moved in the same direction at least 80% of the time.
SpreadEdge also looks at current market conditions to ensure that the seasonal spread is “set-up” consistent with historical averages.
Risk Management
For the SpreadEdge trading program, the Advisor attempts to limit the risk on an individual trade to between 2% and 5% of the account's equity. Other efforts to limit risk are as follows:
