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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

Spread Edge Capital, LLC.

Diverse Set Of Assets

Ability to Profit Long or Short

Ability to Profit Long or Short

Systematic Trading Approach

Systematic Trading Approach

Low Correlation with Stocks

Low Correlation with Stocks

Calendar Spreads

  • The simultaneous purchase and sale of the same commodity with different delivery dates
  • Calendar Spreads…
  • Are impacted by supply and demand factors
  • Have well defined historical trends and trading ranges
  • Can have a “long” or “short” bias
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.

Seasonal Strategy

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:

  • SpreadEdge monitors approximately 20 different commodities across 6 asset classes to spread exposure across a wide range of markets.
  • Risk is further minimized by spreading exposure across the various delivery dates within each individual commodity (minimizing front delivery month exposure is critical).
  • Strict “stop loss” discipline is leveraged on all trades based off extensive back-testing.
Risk Management
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