The CTA bases trade decisions on Fibonacci analysis of both price and time. Using our advanced analysis, the CTA identifies areas of significant Fibonacci support and resistance in advance of the market reaching these levels. Once a market moves into the previously identified zone, the CTA evaluates a lower time frame chart that is utilized with proprietary indicators as a “trigger” to initiate new trades.
Each trade the CTA makes has specific stop-losses to limit risk, as well as targeted objectives to exit trades with profit. With a minimum trading unit size of $25,000, each unit trade will usually contain 2 contracts, providing the CTA with an option to take partial profits on a position as the market moves in the anticipated direction. Most often, the CTA will be trading the stock index futures, specifically the E-mini SP. However, there are occasions that trade set ups may occur in Currencies, Fixed income, Energies or the Grains.
A strong majority of the time the trading will consist of day trades and the clients will be flat the market(s) at the end of the day’s trading session. There may occasionally be a trade that the CTA will decide to hold overnight. This would only occur if the CTA has a significant lead on trade and the set up triggered at a particularly strong Fibonacci level.