Risk Disclosure
The following page is designed to show the Trading systems performance on a daily basis applied to the real trading market.
SOME OF THE TRADE EXAMPLES IN OUR COURSES AND NEWSLETTERS, AND NEARLY ALL OF THE EXAMPLES CONTAINED IN THE MARKETING MATERIALS AND IN THE PERFORMANCE SUMMARY INCLUDE HYPOTHETICAL EXAMPLES.
The trades given by this system, found in the historical results are real trades conceived by the system prior to the next trading day. The account used to display the performance results of those trades for use in conveying to you the value of the system is hypothetical. The account does not consider commissions, exchange fees, or slippage. The CFTC provides an excellent description of the limitations of hypothetical trades and, therefore, we are providing it to you:
Many trading system promoters advertise their systems by reporting hypothetical trading results. Hypothetical trading results typically are based on trading simulations using historical price data or simulated "real time" computer trading. To obtain these results, trading system promoters often pretend that they traded futures contracts at market prices that occurred some time in the past. They then calculate the trading results that these trades would have achieved had they been placed, based on actual prices. These results sometimes show impressive trading results and large net profits with only a few, small margin calls.
Whether based on historical data or simulated "real time" trading, hypothetical results do not reflect the results of any actual trading. In other words, there is no actual futures account, no actual investment, no actual trading, and no actual profits. The results are purely the product of simulation.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Global Spreads Overview
This program trades calendar spreads, simultaneously going long futures of one month and short futures of another month in the same commodity, during a specific time of the month. The program seeks to exploit a phenomenon where very large long-only commodity funds have to exit expiring contracts and roll to the next contracts in order to maintain their positions in the market. The program identifies the timing and inefficient prices and initiates a butterfly spread to capture profits and limit risk. Spread takes place across various contracts in energy, softs, grains, livestock and meats.
The program trades 4 contracts per unit and has predefined and limited risk. Spreads use lower margin and present greater diversification to an investor’s portfolio. Because the markets being traded are correlated and long as well as short positions are held at the same time, generally you have less risk with spreads than there is with outright contracts. Furthermore, this program has no correlation with the major benchmarks and is agnostic to market direction and unique in its approach.
| Frequency: |
The fly spread trade 10 times per month. |
| Scalability: |
Global Spreads can trade $100+ Million. |
| Minimum Investment: |
$30,000 |
| Commission: |
Commission is $20 per contract. |
| Exposure Duration: |
2-3 weeks |
