At some point, every commodity trading advisor wonders if they should set up a pool. Most CTAs who set up commodity pools live to regret it, because investors overwhelmingly tend to prefer separate accounts. Listen to this episode to find out why, and also the few situations where a pool might make more sense.
Some CTAs won’t allow their customers to use notional funding, or they set restrictions on which customers may use it. These restrictions inhibit CTA profitability and make it more difficult for CTAs to attract customers. Listen to this episode to find out why profitable CTAs don’t set restrictions on their customers’ use of notional funding.
New CTAs often trade for their customers without a written agreement. This is called “Trading Naked” and it presents a profitability problem for CTAs. One reason is because it can hurt your track record. Listen to this episode to find out how, and what you can do about it.