One of the benefits we often tout for working with a managed futures broker like Attain is ongoing due diligence. We’ve all been told a million times over how important due diligence is, and it makes a lot of sense intuitively - making sure you understand all the ins and outs of a strategy and manager before risking your hard earned money. But what about once you have invested… what about making sure the ship remains on course once you’ve gotten involved? Does a pilot just check the plane before takeoff and then ignore the instruments while in the air? One would hope not - they need to be constantly monitoring their instruments throughout the flight to make sure the plane stays in the air.

Many an investor believes that they’re fully capable of checking the flight instruments of their managed futures portfolio all on their own, and in some cases, they may be able to. Unfortunately, sometimes the instruments are moving so quickly it can be hard to keep track of the changes taking place, and - more importantly - determining which changes are important enough to inspire action. Think about it like stepping up to the plate in baseball. Different pitches will be easier or harder to hit. You’ll have your soft pitches that your 6 year old could get a homer off of, the fast pitches straight over the plate that you just need to keep your eye on to make contact with, and those dreaded change-ups that leave you wondering what just happened - it simply depends on the subtlety of the changes and the nuance executed in evaluation.

Just how nuanced are we talking? We thought we’d break down just a handful of the elements that need to be monitored and let you decide for yourself - is this something you feel can do on your own, or would you feel more comfortable knowing you have someone on your side, looking out for your best interests every step of the way? Click through to see what we mean.

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To read more Managed Futures research pieces, visit Attain’s Managed Futures Newsletterarchive and our Managed Futures Blog.

DISCLAIMER

Forex trading, commodity trading, managed futures, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors.

The entries on this blog are intended to further subscribers understanding, education, and – at times- enjoyment of the world of alternative investments through managed futures, trading systems, and managed forex. Unless distinctly noted otherwise, the data and graphs included herein are intended to be mere examples and exhibits of the topic discussed, are for educational and illustrative purposes only, and do not represent trading in actual accounts.

The mention of asset class performance is based on the noted source index (i.e. Newedge CTA Index, S&P 500 Index, etc.) , and investors should take care to understand that any index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices: such as survivorship and self reporting biases, and instant history.

Managed Futures Disclaimer:

Past Performance is Not Necessarily Indicative of Future Results. The regulations of the CFTC require that prospective clients of a managed futures program (CTA) receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors be highlighted. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA.

Copyright © 2011 Attain Capital Management, licensed Managed Futures, Trading System&Commodity Brokers. All Rights Reserved. Reprinted with permission.

This entry was posted on Tuesday, April 17th, 2012 at 11:11 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.