About The Frontier Fund
The Trading Advisors
A commodity trading advisor ("CTA") is a professional money manager who seeks to generate returns from the futures and options markets using a variety of trading styles and strategies.
CTAs are typically classified according to their trading style, trading timeframe, and markets traded. Here are some examples:
A
systematic CTA uses highly sophisticated computer trading systems to monitor price trends to determine when to buy or sell in a futures market.
A
discretionary CTA regularly uses personal decision-making, drawing upon a wealth of outside data, to determine futures trades.
A large majority of CTAs are categorized as
“trend-followers;” these CTAs seek to make profits in the same direction of a trend. If prices in a market are rising, they will go long; if prices are falling, they will go short. If their directional trades are correct, trend following CTAs will close out their positions at a later time for a profit.
CTAs can also be classified in terms of their trading time frame. A
shorter-term CTA can maintain a position for less than a day. A
longer-term CTA can maintain a position for up to six months.
CTAs also differ in terms of their mix of markets. Some CTAs focus upon a particular sector (such as energy, or agriculture). Other CTAs trade a diversified mix of markets across several sectors.