| What are the benefits of using a CTA (managed futures) fund in a portfolio? What is a reasonable allocation, and where should that allocation come from? Commodity trading advisors (CTAs) are an important strategy that should be considered as part of a diversified portfolio.
CTAs can be characterised into three groups based on the length of trends and holding times. Trends and holding times of less than eight to nine days are considered short term, three months to six months as medium term and beyond six months as long-term. Each group has a different response to market volatility, and sometimes market volatility will not work for CTAs – in particular, when market volatility is high but a trend is not identifiable. .............................................Full Article: Source
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