FUTURES

US Futures Trading

US futures contracts are becoming an increasingly important piece of the construction and management of investment portfolios. Equity index futures like the E-mini S&P 500 or MSCI EAFE have gained relevance for a long list of reasons, stemming mostly from managing risk, putting cash inflows to work and taking directional views. And interest rate futures used to hedge fixed income holdings and offset market volatility are paramount to running a risk-managed portfolio.

WHY TREC MODEL TRADES FUTURES AND HAS COMPETITIVE EDGE?

Futures contracts are standardized, transferable exchange traded contracts which allow an investor to take a directional (long or short) position in a wide range of underlying assets including currencies, fixed income, equity indices, commodities, energy, etc.

In order for an investment strategy to be profitable, there must be an underlying fundamental reason for the existence of a profit opportunity which the strategy can exploit. Given that TREC trades exclusively in the most liquid, efficient and credit protected markets, its profitability relies on those characteristics in order to obtain a competitive edge.

Why Can TREC MODEL Deliver Crisis Alpha?

TREC model is adaptable, liquid, systematic and void of long equity bias making it less susceptible to the trap which almost all investors fall into during an equity crisis. Following the onset of a market crisis, a TREC model strategy will be one of the select (few) strategies which are able to adapt to take advantage of the persistent trends across the wide range of asset classes it trades in delivering crisis alpha to their investors.

Market Timing: TREC model does Not Predict

Predicting the exact onset of a market crisis can be next to impossible. Market timing ability for such rare events is highly unlikely. TREC model reacts to market crisis and positions itself across a wide spectrum of asset classes in highly liquid futures contracts to profit from trends which occur across all asset classes during these periods.

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