| MKC |
MKC GLOBAL INVESTMENTS
MKC GLOBAL INVESTMENTS
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| ______________________________________________________________________________________ |
| mkc |
| mkc |
Trading Strategy:
Markets are not efficient and their returns don't follow a normal
distribution. Instead, "fat tails" and skewed distributions occur
more frequently than Random Walk theorists believe. Theses fat
tails imply a higher occurrence of larger out-sized price moves;
the perfect markets for any long-term trend follower.
Our system utilizes price alone to signal when to enter a market,
when to exit a market and helps determine position size. Broadly
speaking, as trend followers, we choose to be buyers of a rising
market and sellers of a declining one. Our system signals to go
Markets are not efficient and their returns don't follow a normal
distribution. Instead, "fat tails" and skewed distributions occur
more frequently than Random Walk theorists believe. Theses fat
tails imply a higher occurrence of larger out-sized price moves;
the perfect markets for any long-term trend follower.
Our system utilizes price alone to signal when to enter a market,
when to exit a market and helps determine position size. Broadly
speaking, as trend followers, we choose to be buyers of a rising
market and sellers of a declining one. Our system signals to go
long after a market bottoms and begins to rise and signals to exit after it peaks and begins to decline. The reverse holds true for short
trades. Therefore, by definition we rarely catch turning points in a market's price, rather our strategy rides the price trend between them.
MKC's system for entering and exiting a market involves only a handful of parameters. The system is robust (not optimized) and MKC
trades each global market identically. Conversely, the substantial risk management protocols employed are more detailed. We enter a
market with a predetermined stop price and intend to only risk a maximum of 0.50% of assets under management per trade, although there
are times when markets can gap and losses can be higher. Each market's volatility is tracked continuously in order to determine when the
volatility skews the risk/reward ratio. The system also tracks the correlation of each position to ensure proper diversification. We believe in
diversification to such an extent that MKC Global Investments trades more markets globally than many other managed futures funds and
CTAs. Several other aspects of our risk management system exist to lower the volatility of our portfolio and reduce the duration and extent
of draw-downs. Risk management must be the cornerstone to any profitable strategy geared for long-term survival.
trades. Therefore, by definition we rarely catch turning points in a market's price, rather our strategy rides the price trend between them.
MKC's system for entering and exiting a market involves only a handful of parameters. The system is robust (not optimized) and MKC
trades each global market identically. Conversely, the substantial risk management protocols employed are more detailed. We enter a
market with a predetermined stop price and intend to only risk a maximum of 0.50% of assets under management per trade, although there
are times when markets can gap and losses can be higher. Each market's volatility is tracked continuously in order to determine when the
volatility skews the risk/reward ratio. The system also tracks the correlation of each position to ensure proper diversification. We believe in
diversification to such an extent that MKC Global Investments trades more markets globally than many other managed futures funds and
CTAs. Several other aspects of our risk management system exist to lower the volatility of our portfolio and reduce the duration and extent
of draw-downs. Risk management must be the cornerstone to any profitable strategy geared for long-term survival.
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This fund was ranked based on the data in BarclayHedge's Managed Futures Database
| Barclay Hedge does not include the performance of all CTA Programs as CTAs voluntarily submit performance to the database. The CTAs submit their own performance to the databases and as such, there is inherent risk that the performance was inaccurately reported. |