This system is used for trading in seasonal futures spreads at US-based stock exchanges. A seasonal spread is what is referred to as a “calendar spread”. In this context, investors enter a long position on a futures contract and they enter a short position on a futures contract with another contractual term.
The average holding period of positions is 2-3 months.
The recommended minimum investment amount per contract is $ 25,000.
A special software program then looks for patterns which have repeated themselves on a regular basis in the past 30 years. In addition to this, “Commitments of Traders Reports” are used to compare the historic positioning of speculators, hedgers and producers with their current behaviour.
Risks for individual positions may result from unforeseeable events, such as extreme weather events or political developments. This may lead to increases in volatility of the overall portfolio. In order to hedge individual positions, it is also possible, depending on the case, to use options.
The SYSMATIC IQM trading system is used for trading exclusively with futures and options denominated in US dollars. For this reason, SYSTRADE translates to US dollars any and all incoming payments to the client’s account not denominated in US dollars.