Managed Futures Education Center

"What complicates risk management further is the relatively short track records of some CTAs. For instance, that S&P option strategy can look amazing -- but if it has not been tested during rare moments of significant stock market dislocation the performance measures can be misleading. Understanding risk management requires an understanding of the CTA’s strategy, the markets they trade and their related margin to equity usage (item's not always evident by considering only headline performance)."

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