What Are Key Aspects of Setting Up an Effective Managed Futures Program?
In addition to a good back office infrastructure, appropriate and flexible service providers, accessible program with appropriate risk/return metrics, clean marketing materials and good performance, we would also include:
- Identify an edge in the markets
- Set up a disciplined investment strategy to capture that edge
- Avoid curve fitting
- Overlay a robust risk management system
- Structure investment points of access consistent with the strategy and trading parameters