How to Master Managed Futures

Even if You Have Never Traded Before!

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Copyright © 2018, TopTradersUnplugged.com

Published in the United States of America

180223-01014.3

ISBN-13: 978-1947313897
ISBN-10: 1947313894

No parts of this publication may be reproduced without correct attribution

to the author of this book.
Here’s What’s Inside…
Foreword
Introduction.........................................................................................1
What is Managed Futures?..............................................................5
Why Do I Need Managed Futures? ............................................ 19
Top of the Strategy Charts? ......................................................... 34
Why Has Trend Following Worked for Decades? ................ 37
The Secrets to Success are Based on Human Behavior ..... 45
How Does Trend Following Really Work?.............................. 48
How to use Managed Futures in Your Portfolio ................... 66
Putting Everything Together ...................................................... 75
About the Authors .......................................................................... 80
Here's What To Do Next
Foreword
If you’d like to make more money from your investments
and be better protected against future crises, this will be
the most important book you’ll ever read.
But First, A Warning:
Before we go further, let us make something abundantly
clear:
This isn’t one of those “get rich quick” books that promise
you a fortune for doing nothing.
Chances are we haven’t met, so we are not making any
claims or suggestions that you will duplicate the results in
this book or achieve any results whatsoever.
Here’s the deal.
The investment strategy we outline has been working
great for many investors for decades, and we believe it
can help you, too. But we’re not suggesting that everyone
(or anyone) who reads this is going to make a lot of
money. We don’t know how much the people who read it
will make. It’s likely that many or most will make little or
nothing at all (especially if they don’t follow the directions
and work hard and diligently).
However, if you’re a “real person” who has an investment
portfolio, some skill, the determination to achieve more
for you and your loved ones, and the willingness to work
for what you want, this is for you.
We’re going to show you what has worked well for us and
so many other investors, and it’s our hope that you’ll be
able to utilize some of the information we share to get the
results you are personally after.
In our time together, we want to talk to you directly, just
as if you were sitting across from us.
We may not know you personally, but based on our years
in business, the interaction from our TED Talks, and
correspondence the listeners responsible for more than
three million downloads of the ‘Top Traders Unplugged’
Podcast to date; we believe we know a great deal about
you.
We imagine you sense a huge unrealized potential in your
long-term investment plan; an extraordinary level of
success you know you can achieve before retirement. We
also imagine you worry about failing to achieve the
success you can see, taste, and smell.
If you feel that way, you’re on the threshold of perhaps the
greatest opportunity of your life. You are about to make a
discovery which will remove the barrier between you and
your ultimate success.
We can make that promise to you because long before we
helped other people realize their own investment
abundance, we were our own best customer. From the
moment of discovery until now, we’ve used the strategy
we’re about to describe to make many of our own dreams
and wishes come true.
Unlike the experience of many investors today, being able
to sleep soundly and having your portfolio grow
consistently, at an above-average pace for decades, is not
a safety hazard. In our view, saying “Yes” to this ambition
is one of the most courageous actions an investor can
take.
In the face of so much bad news coming from the financial
media today, having a desire to feel good, feel safe, and
feel confident is almost regarded as a radical idea. But if
we believe it’s even remotely possible to feel safe and
confident about our investments all the time, we owe it to
ourselves to find out how we can achieve this.
Feeling confident and abundant about our financial future
is a wonderful outcome, and we want you to say “Yes” to
both of them. But what you may discover is that these are
just launch pads to something really spectacular.
Now turn your attention to yourself.
Did you answer “Yes” to the question above?
If you did, you have taken the first crucial step in your
journey.
If you got a “No” or a “Maybe” we hope the ideas
presented here will help you overcome any resistance.
If you consider the possibility of having a consistent,
better-performing portfolio, you may find yourself
thinking, “That’s not possible!” If so, we understand. We
once felt that way, too.
We urge you, though, not to waste much of your precious
time worrying about whether it’s possible.
You see… we’ll share our research and real-life
experience, as well as that of a few Nobel Prize winners, to
prove it is possible. The only question is whether you’ll let
it be possible for you.
If you’re willing to accept that possibility, you are on your
way to experiencing real change in your life.
Introduction
Managed Futures is a strategy long promoted as being a
risk mitigator. But what does this really mean?
Glad you asked.
Put simply, Managed Futures, within which trend
following is by far the largest “sub strategy”, has been
proven to reduce risk when combined with almost any
traditional investment (e.g. stocks and bonds).
Despite this enticing description, many investors consider
this style of investment somewhat of a black box.
In this book we aim to explain Managed Futures in plain
English. Hey, we may even throw in some of our passion
for Managed Futures.
Therefore, as we write this book, we will go for it, damn it!
We’ll let our excitement and enthusiasm spill out all over
the pages. We won’t hold back. We will put the pen to the
page and RAVE. Rave about Managed Futures: how great
it is; how it will benefit you; how it feels good, feels safe,
feels right; how it makes your portfolios better, safer; how
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it will make you richer, healthier, and happier; and how it
will change your life.
So, this is not just another investment book!
But first, a few cautionary words on our style of writing:
You see… many people we have met on our journey say
the same thing to us, and each of them are wrong?
It is this:
“Yes, but you can’t write like that to a sophisticated
investor. They’re not like those people who read the
Reader’s Digest or buy stuff online to look younger or lose
weight or make a lot of money.”
RUBBISH!
Everybody is like “those people who read the Reader’s
Digest and buy stuff online!”
Including you.
Including us.
We don’t care if the readers of our book are lawyers, MDs,
rocket scientists, architects, members of high society, or
whatever. We all respond to passion. Passion is the #1
missing ingredient in finance today.
Everybody seems more concerned about offending the
few “non-believers” than they are about encouraging the
vast number of people who simply have not been properly
informed about this investment strategy.

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Who cares about the small percentage of “cowards” who
have nothing but bad things to say about trend following
whilst simultaneously putting their faith in the “buy and
hold” philosophy?
We know we don’t.
Listen: When you want to convey a message like this, you
should never lie, never exaggerate, never use poor taste,
never be vulgar, never insult your reader’s intelligence,
but you should STOP WORRYING SO MUCH ABOUT
OFFENDING PEOPLE AND START WORRYING MORE
ABOUT ENCOURAGING THEM!
We aim to do just that!
Oh, and one more thing before we get started…
We will also be telling you about the FLAWS of trend
following. All strategies have flaws. So do all people (Even
us!)
Look, investors aren’t dumb. It’s just that they can’t be
bothered to “demystify” what the hell we are trying to say,
so in this book, we’re going to keep it simple.
We’re going to talk to you about investing like nobody has
ever talked to you before. And what we will present on the
following pages can save you and/or your clients from
financial disaster.
So please pay careful attention.
What you are about to read is deceptively simple.

3
In fact, we’re going to ask for a bit of patience from some
of you, especially those who are “old pros”.
You see, the first pages of this book are going to reveal
some stuff that most of you already know.
Please bear with us. Some of our readers don’t know this
stuff yet, and besides, it never hurts any of us to take a
little “refresher course” once in a while.
The good news is it all builds to pave the way for us to
explain the financial “life or death” concept revealed later
in the book.
So let’s move on!
No more messing around. Let’s dive right in and start our
journey to provide you with the key tools to
understanding why this strategy provides risk mitigation
and when it may be a suitable investment to add to your
portfolio.

4
What is Managed Futures?
Managed Futures is a type of investment where a
“manager or trader” manages investments using the
futures markets (and sometimes other liquid derivatives
markets) instead of cash markets. If you’re unfamiliar
with futures markets or “liquid derivatives markets”,
don’t worry, we will explain.
And if you’ve never traded for yourself, fear not, we’ve got
your back too.
Let’s begin by looking at what makes futures markets so
special.

Highly Liquid
Futures contracts are a type of derivative that tend to be
very liquid (i.e. easily sold or bought). Derivatives
contracts derive their value from the underlying assets
and can provide a liquid alternative to something that
may be highly complicated to own or, even worse, sell.

5
Wait. What does this mean? Well, when you buy or sell a
derivative, you buy or sell a contract whose value depends
on something else, i.e. “the underlying asset”. Very often,
this “something else” is a cash market, like a stock index, a
bond or currency or something even more complicated to
buy or sell… like commodities, but the really cool thing
about a futures contract on the asset, is that it can be far
more liquid.
Take, for example, live cattle. Now that really is
complicated to buy and sell (unless you are a farmer or a
cowboy), but a live cattle contract is easy to buy or sell,
and you only need to go to one market to do so.
Regardless of whether you live in Boring, Oregon or Cool,
Texas (We kid you not! These are real city names.), the
futures market in Chicago is where you will be trading
your live cattle contracts!
Futures markets are highly liquid.
In other words, it’s easy to buy or sell futures contracts
because there are plenty of people who want to buy or sell
them and they all get together to do it. The contracts are
all standardized (i.e. they are set up to be the exact same
thing), and they are all bought and sold at the same place:
the futures exchange.
Using our example, not all cows are created equal, but rest
assured, all live cattle contracts are the same!
Why does this even matter?

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If you have ever tried to sell your house, you may
understand why liquidity is so important.
An asset that is illiquid can be hard to sell and may
complicate, or in extreme cases, ruin your life. You may
only be able to get a really bad price for the house because
the location means low demand, or even worse, the
housing market as a whole could become stale and you
may be stuck with it.
The complexity of the trade and the challenges finding a
market can make houses illiquid and many people,
perhaps even you, have learned the hard way. Value isn’t
value until it is bought or sold, and money is exchanged!
Let’s look at our cattle example in more detail.
A cattle farmer might own a herd of cattle, and if he wants
to sell the herd, he needs to find a buyer. If there are many
buyers, he might get a good price, but if there are few
buyers he may not, and in the worst case, there are no
buyers.
In this case, he will have to take the cattle home and wait
until he finds a buyer, costing him money and time (not to
mention the smell).
An investor who holds a long or short cattle contract
position will, on the other hand, be able to trade this
contract because all cattle contract buyers and sellers are
aggregated together at the futures exchange. Since these
contracts are highly liquid, all cattle traders get fair

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market prices, and it’s easy to take a profit or loss on any
day, in any market environment.
Let’s stay with our cows for a little while longer.
Buying and selling cows is a rather cumbersome activity
left only to the experts. Think farmers and cowboys.
However, buying and selling cattle futures contracts is
relatively easy. These contracts give an investor exposure
to cattle prices while avoiding the aroma of manure and
stress of finding a market.
Ask yourself, “Do I have any cattle exposure in my
portfolio?” You probably think this is a ludicrous question
and if you had to buy and sell cows, it is. But if you could
have an investment that buys and sells cattle contracts for
you, this question becomes less ridiculous.
Since futures contracts are easy to trade, are highly liquid
and remove the complications faced by owning the
underlying assets (particularly in the case for
commodities like Live Cattle or Lean Hogs), these
contracts give Managed Futures portfolios the
opportunity to do certain “things” traditional investment
portfolios can’t easily do.
Using futures contracts can provide exposure to a range of
investments that lie outside the traditional set of
investments most portfolios include (e.g. stocks and
bonds).
We should also highlight, that futures markets cover both
liquid and illiquid assets from global stock indices or

8
currencies to wheat, sugar, and platinum. They provide a
simple way to buy and sell across a wide range of things
around the globe, 24 hours a day, five days a week,
basically anything anyone really wants to trade, anywhere
at any time.
We’ll explain this in more detail later. What’s the point of
us telling you all this?
You’ll find out in a moment, but first we want to introduce
a very important concept, which is often called “the only
free lunch in Finance”.
You see, one of the “things” that Managed Futures can do
for you is getting access to diversification. We mean REAL
diversification and new potential profit opportunities in
types of investments you might never have thought of, like
cattle or, even better, the Aussie dollar or the Hong Kong
stock index.
Tell you what. Let’s take it a step further and explore
another great benefit that Futures bring.

Global and Multi-Asset Faceted

Does your current investment portfolio include the Polish
Slotky, Palladium, or even Coffee? We may dislike manure,
but we all like coffee. But do you have any of these in your
investment portfolio?
Sorry… What’s that you say? You don’t?
That’s okay, but pay attention as we are about to change
your mind about this.
9
Futures markets cover a wide range of global assets. This
includes both a wide range of “liquid alternatives” from a
range of global financial assets and a range of assets that
are difficult to invest in directly.
For example, coffee futures contracts are based on specific
types of coffee, and we don’t mean your daily fix of
Starbucks vanilla flavored latte. These types of contracts
are based on things like grade, quality, and location of
origin.
There are thousands of types of wheat you can buy in the
world, but in the futures markets, there are only three
different wheat futures contracts. This keeps things
simple and makes wheat futures easier to use (i.e. for
hedging, speculating, etc.)
BUT, commodities are only a small part of the
smorgasbord of contracts traded on futures exchanges.
(Only people with Nordic roots would use a word like
smorgasbord, but let’s just leave it in and move on.)
These days, financial futures and currency futures make
up the largest portion of the futures markets. Financial
futures (those based on financial stuff such as stocks and
bonds) as well as currency futures are somewhat simpler
because they are usually already pretty specific. They are
linked to markets which are more liquid (i.e. easier to buy
or sell) than commodities, but they still provide simpler
(and cheaper) access to the underlying assets.
We will explain this soon.

10
For example, the S&P500 index is just a basket of 500
stocks and an S&P500 futures contract is simply a
contract that depends on the value of the S&P500 index in
the future.
What is the difference between the index and the futures
contract? You own the index, but the futures contract is a
contract whose value depends on what happens to that
index (basket of stocks) in the future.
If the index goes up in the future and you are “long” a
futures contract, you make money from the increase in the
price of the futures contract. If the index goes down, you
lose. The opposite is true if you happen to have sold the
futures contract. Pretty darn simple, wouldn’t you agree?
Good, that’s what we like to hear.
Of course, you have to put money down to do this. This is
called margin. The margin is meant to cover gains and
losses in the short run. The margin is sort of like the
money you bring to the poker table to play. If you don’t
have any money on the table to risk, you can’t play.
Likewise, in futures trading, you cannot buy or sell any
futures contracts if you can’t meet the margin
requirement.
If you’re still not clear on how this will benefit you, come
closer and listen to this.
Using our S&P500 example, the futures contract allows
you to get exposure to the S&P500, without actually
buying or selling the underlying 500 stocks included in

11
the S&P500 index, and manage the ever-changing
percentage allocation within the index. So, whilst you do
not own the S&P500 stocks, you get exposure to the
changes in value of the S&P500 index and in just one
trade.
Sweet!
This can be especially useful if you want to buy or sell
often or, even better, if you just want to sell because
selling is almost always a bigger pain than buying.
We will get back to this later but being able to buy and sell
easily, is a key advantage for Managed Futures strategies.
As you begin to see, futures markets offer a wide range of
opportunities and advantages for you as an investor.
To demonstrate the breadth of futures markets, let’s
review the common sub-classes or sectors as we often call
them: equity indices, fixed income, currencies, and
commodities.
Equity futures contracts cover a wide range of equity
indices. This begins with the well-known US indices such
as the S&P500, the Dow Jones Industrial Index, the
Nasdaq Index all the way to the Hang Seng in Hong Kong,
the OMX30 in Sweden, the Nifty Fifty in India, and many
more. Put simply, futures contacts cover a wide range of
equity markets globally.
Fixed income exposures range from short-term debt
contracts to long-term bond contracts globally and thus
provide exposure to both short-term and long-term debt
12
across the globe. This ranges from short-term debt such as
the three-month US Treasury bill to the French 10-year
note or even 30-year bonds.
Currencies cover a huge range of different currency pairs
often relative to the euro or the dollar. Currencies cover
the full gamut including more liquid currencies such as
Swedish Kronor, Aussie Dollar, or Japanese Yen all the
way to the forward-based contracts such as the Russian
Ruble or Polish Slotky.
Commodities cover, by far, the largest range of contracts,
so much so, they are often divided into sub-sectors. These
include energy, industrial metals, precious metals,
agriculture, and meats.
Energy contracts include different types of oil or natural
gas prices across the globe.
Metals are divided into the ones used for production,
known as industrial metals such as copper, lead, zinc and
metals used for storing value such as gold, silver, or
palladium.
Agriculture contracts include common food staples such
as wheat or coffee. Meats include contracts that cover
global meat prices such as lean hogs or live cattle.
So, you see, investors who make use of Managed Futures
strategies have access to investing in a wide range of
assets across the globe, in a liquid and cost-effective way.
For any investor who simply holds US equities and/or
bonds, there is clearly the potential for risk mitigation as
13
the strategy gives the investor access to completely new
asset classes which have little or no correlation to the rest
of their portfolio.
But we are getting ahead of ourselves.
How about we reveal another great advantage that futures
contracts can offer you as an investor?
What’s that? You’re in? Great! Let’s go!

Long or Short: Why Not Both!

Most investments only do well when the world is doing
well, i.e. when bonds and stocks go up in value. BUT, what
about when things head south?
You know the old saying, “What goes up, must come
down.” The same is true for market prices!
In the futures markets, the investor can be either the
buyer or the seller of any asset. For example, a buyer of
gold is “long” gold and will make money when gold rises
in price. In contrast, a gold seller is “short” gold and will
make money if gold prices go down.
Let’s continue with another example, French ten-year
bonds.
If you wanted to invest in 10-year bonds in France, you
would need to buy a portfolio of French bonds. If French
interest rates went down (as they have for the last 30
years or so), the value of this portfolio goes up. But when
French interest rates go up, the value of this portfolio
14
would go down. When rates go up, it is not fun to hold
bonds!
However, to make money when French interest rates start
going up, you would need to sell French bonds. That is not
so easy to do if you don’t already own them. You see, to
sell something you don’t own, you have to borrow it from
someone, which is not as straight forward as some make it
sound, and frankly, we don’t recommend it. Why
complicate your life, right?
On the other hand, if you sell a futures contract on French
bonds, it is as easy as eating a pain au chocolat (250
calories, in case you’re interested)!
The key point is, for any type of futures contract, one can
profit from either an increase or decrease in value of any
asset traded on the futures exchange.
Hold on a minute! Are you saying that if you build a
portfolio of futures long and short positions across the
globe, you have exposure to up and down moves and
trends in the prices of hundreds of different markets,
world-wide giving you truckloads of opportunities to find
something that is on the move?
YES, YES, and YES. BINGO!
As you can tell by now, it is never boring to work in the
futures markets. Something is always happening
somewhere!
For many assets, there are good times to be a buyer and
other times where it is better to be a seller.
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Let’s zoom in on the good old equity markets.
Most of the time, it’s good to be an equity buyer, but in
certain periods it’s a great to sell equities and even go
short.
For example, in 2000 to 2002 during the Tech Bubble or
2007 to 2009 when the housing bubble exploded, stocks
dropped more than 50% in value for the broader indices
and more than 80% for the tech heavy Nasdaq during the
Tech Bubble. These extreme price moves can also be
found in markets like oil, palladium, coffee, lean hogs,
come to think of it, in pretty much any other futures
market.
With an ever-changing world, where natural as well as
political disasters can really move the markets, it can be a
real advantage to be long or short depending on what is
happening.
But hey, if you can easily be long or short, why not have
something in your portfolio that can do both?
Wouldn’t that be something?
I think you already know where we are going with this,
right?
We knew it. We just can’t fool someone like you!
Managed Futures strategies do exactly that. They don’t
mind riding the bull or dancing with the bear, depending
on what is happening in markets at that time.

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Quick Recap
Let’s summarize the important points here:
The Three Key Characteristics of
Futures Markets

Let’s huddle and recap a few things:

Futures markets provide highly liquid exposure to a wide
range of global assets. The standardization of these
contracts creates a market for buyers and sellers to come
together (e.g. wheat contracts vs wheat itself).
Since the contracts are settled at the exchange and their
value depends on the “value” of the underlying asset, they
are much easier to buy and sell than the asset they are
based on (remember the French bonds or the cows).
This allows futures portfolios to be easily exposed to
increases and decreases in the value of global assets they
17
are based on with the potential for short-term or long-
term profit opportunities.
In one sentence:
FUTURES ARE HIGHLY LIQUID, PROVIDE GLOBAL
EXPOSURES, AND IT IS EASY TO GO EITHER LONG OR
SHORT IN FUTURES MARKETS.
Boom! There you have it. Pretty cool!

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Why Do I Need Managed Futures?
Glad you asked!
On paper, it sounds great to invest “in a wide range of
markets”, to be able to be “either long or short”, and to “do
it easily and cheap” (i.e. via liquid markets), but what does
this really mean for you?
Honestly, investing in hundreds of different markets, long
and short, changing your portfolio constantly, is a big job.
It requires keeping track of a huge number of things that
are constantly changing. It’s a big data problem that
requires teams of people just to keep track of all this stuff.
The truth is, a portfolio like this needs to be managed. In
other words, to invest in all these things one needs
Managed Futures. And to get Managed Futures, you need a
manager to manage all the long and short contracts across
the globe that change constantly.
Want to know the technical (and regulatory) term for
such a manager?
Here it is: A Commodity Trading Adviser, or CTA for short.

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Not the sort of name most people would have guessed,
especially because most CTAs trade more financial
markets than they do commodities. But futures markets
did start off with just commodities, so the name stuck
even though only a small number of futures today are
commodities.
Hey, we didn’t say everything in this book would be
logical!
But wait, why do I really need one of those CTAs and what
could adding one or two of them do for me and my
portfolio?
Frankly, a lot!
If your portfolio is anything like most investors’, it will
have a big exposure to stocks and bonds, and most of the
time you will be “good”.
Until you aren’t.
We have all heard the “in the long run” argument, which is
less than compelling when “in the short run”, our portfolio
may be down 50%!!
So how can you protect against that?

Are You Prepared for the Next Market Crisis?

When things get messy, when there’s a difficult global
event, when a crisis occurs that we did not see coming,
this causes market stress.

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Market stress provides opportunities for the strategies
that are adaptive (i.e. strategies that don’t rely on any one
type of market environment in order to profit). These
strategies take advantage of short, medium, or long-term
opportunities either long or short wherever they might
occur.
For our US readers, think of Managed Futures like the
shortstop in baseball. The short stop is the only player
who can play the infield and outfield. This player adjusts
to where the ball is played far more than any other player
on the field.
For non-US readers, Managed Futures is your mid-fielder
in soccer, or football as we really call it, who tries to attack
and score a goal but also plays defense when required. A
good mid-fielder adjusts to the state of the game.
Put simply, Managed Futures work when things happen,
and markets are moving. Not least when there is an
unexpected stress causing “trends in prices” in one or
many assets at the same time.
Although sudden moves, against a strong and well-
established trend, may mean that the strategy does not
profit in the initial period.
Frankly, the reason Managed Futures can perform so darn
well over time is there is always some stress happening in
the world. Something is always going up or down.
It’s like watching the news. Sometimes there is not much
going on and sometimes there’s lots of news, but there is

21
always something happening somewhere all the time.
Managed Futures does well when lots of “stuff” happens.
Managed Futures strategies, like the TV news desk, tend
to get busier when there’s a catastrophe or a global crisis.
A lot of things start happening and this is when you get
what’s often referred to as crisis alpha. A fancy term for
profits gained during periods of sustained crisis.
A bigger crisis often leads to longer term trends in market
prices in different directions (both up and down). The
bigger the crisis, the more markets move, and the more
valuable it is to have an asset in your portfolio that reacts
in response to these events.
In short, the ability to buy or sell a wide range of global
assets while remaining liquid makes Managed Futures
strategies adaptable to different market environments.
Under ordinary market environments, this is often taken
for granted, but when things get complicated, this
characteristic allows Managed Futures to be one of very
few investment strategies to adapt to adverse market
conditions possibly capturing the ever-coveted crisis
alpha.
Let’s just say that one more time:
CRISIS ALPHA IS THE PROFITS GAINED DURING PERIODS
OF MARKET STRESS OR CRISIS.
It’s also important to say that not all crisis events are
about equity markets (although most of the ones you
remember probably are).
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Crisis can be a stressful event for any asset.
Remember oil back in 2014? The price of oil dropped
quicker than the opinion polls of most politicians! Equity
markets were quiet that year, but commodities and
currency markets, put simply, “went bananas”.
During this environment, Managed Futures was a very
very profitable strategy as crisis and uncertainty spread
across many markets and sectors.
Equity markets did very little, but Managed Futures had a
great year capturing crisis alpha outside the equity
markets due to its diversified allocation of risk across
many different assets.
Let’s hammer home that point one more time.
Managed Futures does well when things happen, and just
like when there is lots of news, it usually means things are
difficult somewhere.
Since Managed Futures adapt well in adverse
environments, it may be one of very few strategies that
can really help you when things “get ugly”.
It can help reduce large losses in your portfolio by
offsetting them with gains since these events are generally
favorable for Managed Futures.
It can adapt well when other hedge fund strategies may
have trouble providing the risk mitigation or protection
you were expecting for your portfolio.

23
This is why more and more investors have started to
combine Managed Futures with their stock and bond
portfolio, creating much safer AND better performing
portfolios.
This is truly changing their lives and allowing them a
much brighter outlook towards retirement, a retirement
that can be afforded at a younger age than those relying
on the traditional “60/40” portfolio construction.

A Warning to all Fortune Tellers

Managed Futures isn’t for everyone.
If you believe you can predict when a crisis will occur or
when you are about to lose money in your portfolio… this
isn’t for you.
Neither is it for you if you’re looking for a “get rich quick”
solution that so many other books promise!
Sorry. We just can’t help you there!
BUT…
If you want to put together a portfolio that can withstand
the test of time, including the next crisis, whenever it
occurs, Managed Futures will be a great addition to your
portfolio.
But as soon as you add Managed Futures to your
investment arsenal, there is something that may be
difficult for you to give up.

24
No, we are not referring to smoking, drinking or any other
softness you may have.
We’re talking about the need some people have of wanting
to sit in front of a computer screen for 18 hours a day,
buying, selling, and constantly calling your financial
advisor or broker for the next trade idea and the next and
the next.
You can’t call up your Managed Futures manager and ask
them when the next crisis is going to happen or when they
are likely to make money. Their guess is just as good as
anyone’s and most of them are wise enough not to start
making predictions about the future.
The key thing a Managed Futures strategy can do is be
liquid, be adaptive, be long or short, be un-emotional, be
uncorrelated, be disciplined, and be able to access lots of
markets.
This makes it a great weapon in your investment arsenal.
But unlike what all the “so-called” experts try to do each
day on TV, investments into Managed Futures can be
neither timed nor predicted and, frankly, can be as
exciting as an annual CPA convention.
Unlike the TV “Experts” CTA’s won’t tell you what they
think… but they may tell you what they have in their
portfolio.
Which would you rather know?

25
In fact, it is quite normal for investors coming to our
offices for the first time to say, “This is like coming to see
my accountant. It’s so quiet and calm.”
There simply isn’t a good and reliable way of predicting
when you should buy in to a Managed Futures strategy,
with one exception.

When to Invest and Not to Invest in Managed

Futures… That is the Question
The answer to this question is best put in the words of one
of the oldest Managed Futures Pioneers, Bill Dunn who
would often say:
“The best time to invest in Managed Futures is at the
bottom of a drawdown, the second-best time is today.”
What Bill means is it’s better to just invest and stay
invested in this strategy rather than chasing returns after
a big win only to sell it after a period of lagging
performance.
And he really should know, as DUNN Capital’s track
record show that $100,000 invested in 1974 is worth
more than $100,000,000 as of December 2017 (without
making any further investments).
Allow us to digress for a minute or two into why many
investors fall into this “return chasing” trap.
IT’S BECAUSE MANAGED FUTURES TENDS TO BE
COUNTER-CYCLICAL IN PERFORMANCE.

26
It’s hard for many investors to emotionally accept that
when everything else is working great, Managed Futures
tends to struggle.
Nothing is happening when all is peaceful in the world.
Yet, when that peace is suddenly gone, and market
distress is skyrocketing, the cycle flips.
2008 is a good example. That was a year where lots of
things happened which caused market stress and which,
in turn, created lots of opportunities for Managed Futures
strategies.
2008 was excruciatingly painful for most traditional
investments but great for Managed Futures.
On the other hand, during the stellar equity years
following the financial crisis, some Managed Futures
investors were disappointed with returns for this strategy
but smiled when they looked at their equity returns.
But that’s okay. That is how it’s supposed to be!
It is important to always look at the whole “package” or
portfolio not just the individual pieces.
A short story for you. If you find yourself having the urge
to get rid of your Managed Futures investments, it’s
important you remember this simple rule.
DON’T BUY HIGH AND SELL LOW.
What do we mean by this? Many investors buy Managed
Futures after a stellar year expecting the same the
following year, and then when they don’t get it, they sell

27
out. That’s what we refer to as “Buying high and Selling
low”. If you are going to redeem your Managed Futures
investment, please redeem them on a new high.
Here is why, and based on a true story.
Back in 2013, a foundation one of us worked with, and
who will remain un-named, asked why they had slightly
lagged their peers. Their portfolio included a sizeable
allocation to Managed Futures.
The Managed Futures allocation was included to provide a
more robust overall portfolio over longer periods of time,
not just when equity markets were doing well.
Their foundation peers, on the other hand, had much
more equity-focused portfolios, and thus, their decision to
add Managed Futures took courage and allowed them to
be different from the “herd” or their peers.
As you probably remember, back in 2013, equities were
roaring like never before, and anything that wasn’t
equities was not great. When they asked what to do, it was
explained that this investment strategy works when
things you like (e.g. equities) don’t. That is, you don’t
cancel your house insurance because your house hasn’t
burned down yet or was missed by the latest hurricane.
If you sell it now, after a period of low performance or
even a drawdown, you might end up buying again after it
has recently worked (when it is expensive), and you risk
selling it before it has worked for you.

28
The foundation was advised, “It doesn’t matter if you
change your mind, but don’t change your mind now. Wait
until something positive happens with the strategy, and if
you are still unhappy, take your profits and let’s re-consider
this.”
They agreed to keep their Managed Futures investment,
and ironically, the following month after the Financial
Times called Managed Futures “dead” quoting the end of
trend-following, this became the starting point of one of
the biggest rallies for the strategy in the last decade.
Since Managed Futures is somewhat counter-cyclical, you
may be urged to exit the strategy at the worst possible
moments.
We all know that doing something different from “the
herd” is not easy and takes courage, but over the long run,
it can make your portfolio far more sustainable.
For some reason it is OK to fail conventionally… but not
OK to fail un-conventionally.
So what do we mean by different? It seems that Managed
Futures strategies/investments are coming at the world
from a different perspective. They take risks differently
and capture different opportunities than how we typically
do things.
In order to explain this, we need to take a step back and
explain a simple concept called convergent/divergent risk
taking.

29
Not All Risks Are Created Equal
What you are about to read may be the single most
important part when it comes to understanding the real
risk of investing… perhaps even in life!
So pay attention… and let’s dive in.
Managed Futures strategies focus on a different type of
risk compared to many of its “relatives”.
These strategies love change and disruption. Whilst most
investors prefer understandable, measurable, “knowable”
risks (i.e. the kind of “theoretical” risks you learn about
studying for your CFA exam or in finance 101), Managed
Futures strategies, are built to thrive on market regime
change and uncertainty.
How can we explain the philosophical difference between
how a Managed Futures investor sees risk vs how most of
us are used to thinking about financial downside?
Pretty simply, we think.
Take our own lives, for example. Our lives are full of
different types of risk and as you know, different types of
risk require different strategies to cope with them. This is
why, when we build investment portfolios, we should mix
together strategies that work in different situations and
market environments.
Pretty simple concept.
Now let’s dig a bit deeper.

30
A common terminology we use in the Managed Futures
space is the concept of “convergent” vs “divergent” risks.
Let’s break that down a bit.
Convergent risks are the ones we understand and can
measure or conceptualize.
Divergent risks are when the world is changing, and it
may be hard to “measure”, predict, let alone handle them.
A convergent approach starts with a particular view about
the world, or in your case, about your investments. For
example, if you believe that, over the long run, stocks and
bonds give you a risk premium, i.e. a real return, then the
right strategy is to buy and hold these assets over long
periods.
This works very well, as long as you don’t freak out during
a crisis or if you don’t get into financial trouble during
your investment career and have to liquidate your
portfolio at the worst possible time.
A divergent strategy works by assuming we know nothing
about what will work, purely based on what has worked.
So, if equity returns used to be positive but are now
negative, a divergent strategy doesn’t care about our
beliefs. It only measures what the market is doing right
now. It only looks at the price action.
This is the key difference between these strategies.
On one side, the convergent strategy tends to double up
on losers in the short run hoping that, in the long run, they

31
might win. The divergent strategy assumes we cannot be
sure in the short term what works or doesn’t work, so
instead they will cut losses and follow the winners “or
trends” that are currently working.
Let’s think of a simple example outside of finance:
…something we have all tried…
Okay… got it.
How about social networking and social risk?
Some people are very “convergent”. They have a small
group of friends they know really well, and they cherish
this small network. If one person leaves the group, it’s
difficult for them.
Other people are the life of the party. They go from person
to person, knowing lots of people, and somehow they’re
always where the action is taking place through their
“divergent” behavior. Interesting things tends to happen
to these people and they always hear about what is going
on. The downside is they do not foster the same deep
relationships as someone who focuses on a narrow set of
friends.
There are advantages and disadvantages to both
approaches, just as there are good times or bad times to
be the social butterfly or the tight-knit affectionate
introvert.
Okay, back to the world of finance.

32
Managed Futures take risks by tending to cut their losses
and follow the winning action. Most people, on the other
hand, tend to take profits from their winning trades
(proving they were right… which feels good) too soon and
ignore the losses building up when they are wrong.
Knowing this, it’s useful to add a strategy that has the
exact opposite approach.
So why might you need Managed Futures?
The honest answer is you might not, if you think you have
the foresight to predict every major future crisis ahead of
time.
But if you are like most people, including us, and you want
a portfolio that can adapt to world events and natural
disasters, that can protect you when needed, while still
growing your wealth over time, then you really do.
Many people wait for the rain to come to buy an umbrella,
but for us who have lived in Sweden, Denmark, and the UK
long enough, you quickly learn that you can’t outsmart the
rain. Even if you don’t need it when you walk out the door,
it’s better to carry an umbrella just to be safe.
Enough philosophical discussion for Why Managed
Futures, Why Divergent strategies make sense… What is
it? How is it done?
Well, the time has come when we dive into the specifics of
what we actually do in Managed Futures.
So, saddle up. This is going to get even more exciting!

33
Top of the Strategy Charts?
So, which strategies are popular within Managed Futures?
Good Question…
Given the ability to go long and short and invest in a wide
range of asset classes, the types of strategies a manager
could employ are infinite.
Despite this, there are a few classic approaches that have
been tried and tested for decades. The most well-known
of these is trend following.
Others include strategies like macro trading, relative
value, carry trading, mean reversion and more but still to
this day, over 70% of the assets in Managed Futures are
focused on trend following. Given this, we will focus on
this battle-tested approach to investing.

What is Trend Following?

Trend following is a simple concept. When prices go up,
you buy and go LONG. When prices go down, you sell and

34
go SHORT, i.e. follow the trend in market price. The
concept is so simple; it has been used for centuries.
Modern implementations of the strategy may have
become more sophisticated (and sometimes too
complicated), but the concept is still the same.
And when the time comes, and the trends start going
against you, begin reducing your position until,
eventually, you are out of the market.
Pretty easy to understand, wouldn’t you say!
BUT…
Trend following is a strategy that can be very frustrating if
you were only to apply it to one asset or market.
If you only follow the trend in the S&P500, for example, it
may be very stressful and often unprofitable for long
periods of time. You may or may not get it right and the
risks and worry of getting it wrong would certainly keep
you up at night.
Even worse, trend following signals tend to be wrong
more often than they’re right, which is difficult to
stomach.
Regardless of all the preparations you can do before
starting your trend following journey, when you don’t
immediately succeed, those darn emotions take over.
What makes it even harder, the strategy is known to lose
more often than it gains, but when it wins, it tends to win

35
much bigger than when it loses. That is one of the key
secrets to the long-term success of trend following.
Trend following managers overcome the single market
risk by following trends in as many assets as possible over
as many different time frames they can.
All at the same time.
In other words, they diversify their portfolio to reduce the
risk of getting the timing wrong in any one individual
trend. For example, many trend followers may trade over
50 markets looking for shorter to longer lasting trends as
part of one big Managed Futures portfolio.
This allows them to participate in some of the big winners
whilst accepting smaller losses in others. This way, if they
get the timing right on more assets than they get wrong,
they are net profitable!

36
Why Has Trend Following Worked
for Decades?
The Billion Dollar Question…
Trend following strategies make money when “things
happen”. In other words, when there is a big or perhaps
bigger than usual “trend” in one or more asset, either up
or down.
Examples of this are oil prices plummeting 80% or so in
2014 and 2015 or the US Dollar strengthening in 2016,
the Tech Bubble, the Housing Bubble, not to mention the
Bull market in bonds which lasted many years but may
have recently ended.
Looking in the rear-view mirror, all these events seem
obvious after the fact, but individually, can be difficult to
spot.
The reason trend following works is that it operates at the
portfolio level.

37
Timing trends is not simple, but following them is simple
(in concept) and trend following is, in some ways, a
“numbers game”.
What do we mean?
We mean trend following strategies profit from trends up
or down across a wide range of assets. Given enough
assets or markets to trade, something is usually
happening somewhere which creates trends.
In a basket of trend trades, you’re going to be wrong more
than you are right, but the big winners are larger and
more profitable than many smaller losing trades.
Allow us to explain.
In 2014 and 2015, oil prices plummeted for months. This
move was unexpected, and it just kept on going down
despite the view by most “experts” that prices could not
go lower. In fact, many market commentators at the time
talked about oil going back above its high of $150.
A trend following portfolio will have oil as one of its
positions. If oil begins selling off, the strategy will start
following the market down and go Short in oil. Back in
2014, this happened around $90 per barrel or so for most
types of trend following approaches, after the oil peaked
at about $115. If the selloff is long-lasting (as it was back
then), a trend following strategy will keep making money
as the trend keeps going down.

38
Put simply, trend following strategies follow the market,
they let the market tell them what and when to buy or sell
based on where prices are moving.
Follow what the market suggests.
It’s that simple.
But wait…
There is one other key aspect we should also tell you
about.
Trend following strategies have to be implemented
systematically, i.e. with no discretion. No discretion means
that the rules are followed without allowing you to break
them because you’re upset about them!
Discretion, on the other hand, means it’s at the discretion
of a person, a human decision that involves emotion, and
as you know, emotional decisions are highly difficult to
predict since we tend to over-react in the heat of the
moment.
Not being able to react to human emotion seems to work
well for strategies that follow a predefined plan and do
not allow discretion.
To do this, the strategy has to be “systematic”, meaning
that the rules you want to follow are programmed into a
computer to make it easy for the manager to follow them
without the temptation of applying discretion, just like a
pilot who plots in his pre-defined route into the auto-pilot
before take-off.

39
Why is this so important?
When you have a rule that you’ve researched and found to
work well, you need to follow this rule to the letter in
order to have any certainty that the risk and reward
profile the rule historically delivered can continue into the
future.
Another reason you need “hard” rules is that the trades a
trend following strategy wants to take, that turn out to be
the most profitable over time, are the most emotionally
difficult to hold on to.
Yes, the harder it is to hold on to, the more profitable it
can be.
As Marty Lueck, another pioneer in the trend following
world, said in an interview on the Top Traders Unplugged
podcast:
“Trend following can be quite a challenging utility,
return profile, for investors to hold on to. Equities tend
to go up, up, up, up, up and then kick you in the teeth
and then recover and then go up, up, up.
Managed Futures have an opposite profile where they
tend to make consecutive losses then have a very strong
run that makes money.
That’s intrinsically quite challenging for investors to
hold on to, but it’s really valuable in the portfolio.”

40
Returning to the example of oil, anyone selling oil in 2015
would have been uncomfortable as many market
“experts” kept saying that oil could never go any lower.
We all know “Peer pressure” is hard to deal with, and that
is why trend following strategies have to be based on
rules, followed with 100% discipline and laser precision.
Only by taking and holding on to each position as long as
your rules tell you to will you ultimately make money.
This brings us to another point that may explain why this
strategy is NOT very popular, especially with the financial
news media.
A true trend follower would be very boring to feature on
CNBC or Bloomberg!
They have no stories to tell (or sell). No forecast or
prediction to share. No idea of what is going to happen to
the positions they hold.
If they aren’t boring, they are most likely not a trend
follower.
In a podcast interview on Top Traders Unplugged podcast
with the founders of one of the most successful trend
following firms of all times, AHL co-founder, Michael
Adam shared a funny story.
At the time, he was CIO at Aspect Capital (which he co-
founded with Marty Lueck, after they sold AHL to MAN
Group).

41
Imagine him being in a meeting with one of their
investors.
Investor: So, are you Long or Short Gold?
Michael: Yes
Investor: Okay, but which is it?
Michael: Oh, let me check for you. (A few moments
later.) We are Long.
Investor: Great. So that means you think Gold is going
up?
Michael: Maybe.
See where this is going?
Ask a trend follower, “What do you think about oil prices?”
They will reply, “If oil prices go up, we will buy and if they
go down, we will sell”.
How is that for a “black box”?
They don’t have a view on what “value” an asset has, nor
what direction it will go tomorrow.
They simply follow predefined rules.
This makes for very bad (advertising based) TV.
A macro trader would go on CNBC, spout a bunch of
mumbo jumbo about how China will affect X and the
Middle East Y, inflation Z, and why that means the price of
Copper will rise. He or she would get very excited and
sound very confident about his or her forecast of Copper.

42
A trend follower would see this as a 50.5% bet, not
something to get all heated up about. Instead, trend
followers try to put lots of slightly good bets together. If
they do this well, they might have 53%. This is actually
very good over the long run.
Trend followers see macro trading as gambling with the
odds similar to a coin flip. They much prefer calculated
risks. Put simply, trend following strategies play a
numbers game and they stick to their rules.
So why does this work?
If you follow a large number of trends across the world,
there is always something happening somewhere.
Not every day, every month, or even every year, but often
enough over a reasonable period of time for these
strategies to be generally profitable over a rolling time
window of two to three years.
As we said earlier, there is always some news because
something always happens somewhere.
If you could only report news on cold cuts. Well, you could
have some news once a decade when there is a Salmonella
breakout, but when the whole world is your playground,
there is always some news to report. (Sadly, mostly the
bad news gets reported.)
Likewise, there is always a trend somewhere in some
market, and when there are more markets that trend at
the same time, of course, trend following works the best.

43
When things happen, these strategies will follow the
markets with relentless precision and stamina. This is
why trend following also works in periods of crisis and is
known to deliver “crisis alpha” (not to be mistaken to
mean “hedging every single correction in equities”).
When there is a crisis somewhere in one type of asset,
prices can move dramatically. This trend may influence
other assets, causing them to move as well.
For example, 2008 was a great year for trend following,
not only did the S&P500 drop by over 50% but so did
other equity markets. In addition, there were massive
reactions in all types of global assets including metals,
energies, bonds, and many more.
A crisis is a prolonged period where markets are stressed.
In these moments, lots of assets move in value, causing
lots of trends. For trend following strategies, the more
trends, the more opportunities for making money.

44
The Secrets to Success are Based
on Human Behavior
Trend following strategies use rules which require the
strategy to increase the “position size” when confidence is
high, and cut losses when they start losing on their
positions.
For anyone who has ever gambled or invested, you
probably know this is very hard to do.
In practice, we have substantial difficulty cutting our
losses (admitting we were “wrong”), and we tend to hold
on to our losers far too long and sell the winners way too
early (because a winner confirms we were “right”).
Academics call this the “Disposition Effect”.
This sounds a lot like the dating issues we all experienced
when we were young. We can’t cut the “losers”, and we let
the good ones go too early.
It’s human nature, we don’t like to admit when we are
wrong, and we become vested (to use a fancy term) in

45
things we have invested in. Put simply… we fall in love
with our positions.
Just think about how many bank stock investors looked
themselves in the mirror during 2008 whilst repeating,
“Surely it must go up tomorrow and when I break even, I
promise I will sell it!”
Trend following strategies constantly do the opposite of
this.
Think about it. They Buy High and Sell Low… exactly the
opposite of so-called “value” investors!
But whenever the trend weakens, they must cut their
position, and whenever the trend strengthens, they must
add to it (until they reach a maximum position size of
course).
Given this simple approach to investing, it is not
surprising that the strategy works really well when policy
makers have gotten things totally wrong.
Crisis is the most extreme example of this.
When the market has priced events or the economy
incorrectly, this is when a trend following strategy tends
to shine.
In fact, one of the main philosophical reasons trend
following is one of the only truly complementary
strategies to a stock and bond portfolio is that it simply
reacts differently, almost the opposite, to the standard

46
human approach. Thus, when classic approaches have
trouble, this approach tends to excel.
We may even go as far as to say, “TREND FOLLOWING
ALLOWS YOU TO OWN EQUITIES.”

47
How Does Trend Following Really
Work?
Trend following managers allocate risk, not money.
What? Come again?
Yes, they focus on what they are willing to lose, instead of
how much they think they can make.
Doesn’t sound very human, does it?
Maybe all trend followers really are from Mars!
Most of us are used to buying stuff, and we do this with
money (or as finance geeks call it, capital, but really, it is
just money). How do you allocate risk rather than money?
Well, this is a feature unique to futures markets.
To explain, allow us to share another story.

A Day at the Track?

As kids, we were sometimes taken to the horse track to
watch the races. It was a thrilling experience, seeing the

48
beautiful horses with their colorful jockeys, reading the
stats, and trying to determine who might win or lose.
Investing in the futures markets works in a similar way.
You decide which assets are the best (those to buy) and
which are the worst (those to sell). Each day, at the end of
all the races, all the wins and losses are counted and
settled, and you start again the next day.
By settled, we mean you no longer hold a ticket. You have
hard cash in your pocket if you were right, and your
pocket is empty if you were wrong.
From a portfolio perspective, the total value of a futures
portfolio depends on if you were right or wrong across all
of your positions. At the end of the day, when you have
settled all your losses and gains, the value is similar to
cash. This is not always the case when you own French
cash bonds or real, breathing cattle.
Using the horse track example again, the value of your
portfolio depends on if you picked the right horses, but
luckily, at the end of the day, you don’t have to take any of
the horses home!
Since the futures markets allow you to take positions,
“Managed Futures” managers will scale the size of their
bets to be consistent with how risky each “race” is.
In this case, the amount of risk from the fluctuations in the
price (or volatility) is more important than the actual
price.

49
Let us explain.
This is very important, so come closer!
Crude Oil might be really risky, meaning oil prices move
around like crazy. Short-term interest rates, on the other
hand, can be pretty dull for long periods of time, meaning
that they don’t normally move around much.
To get the same “size” of profits or losses, the bets should
be bigger in short-term rates and the bets should be small
in oil.
So, if you wanted to have the same amount of risk in each
asset, you simply need to size the bets consistent with
how volatile each asset is.
This is something most investors never do when it comes
to their own investments… they just allocate based on
cash value!
Managed Futures managers don’t have to allocate actual
money, given the fact that they trade futures where only
the margin has to be put up.
They can allocate a certain amount of risk to each asset so
that they don’t have all of their risk in the assets which are
the most risky. They balance the risk of the portfolio
One type of approach could be an equal allocation of risk
in the portfolio. In this portfolio the manager would allow
each market to be scaled in “bet” size, to have around the
same level of risk based on current measures of volatility
in each market.

50
Another approach some Managed Futures managers tend
to use is to “target” risk.
A risk target is the amount of risk a strategy takes at the
portfolio level, i.e. how much expected risk they are
willing to take on behalf of their clients on any given day.
Putting all of this together, a Managed Futures portfolio
will size positions in each market to get the risk per
market roughly similar (adjusted for the
confidence/signal strength) and then put them all
together and scale the entire portfolio to get to a certain
aggregate level of risk.
This is hugely important because not all assets are created
equal.
Some are more “diversifying” than others, and as a result,
the total risk of the portfolio will vary based on how
correlations between assets fluctuate over time.
A risk targeting portfolio will adjust the amount of risk to
keep the total risk taken across all positions in all assets to
a manageable expected range.
This process is a key element in risk management for
Managed Futures. And as you may know, when it comes to
investing, risk management is mostly about protecting
ourselves from… well, ourselves.

51
Embrace Volatility and Profit from Uncertainty
One particular characteristic of Managed Futures
strategies that makes some investors uncomfortable is
volatility. (That means the value goes up and down a lot!)
One day, you are up, one day you are down, day in and day
out. But over the long run, the volatility pays off in
cumulative performance.
Managed Futures portfolios use a systematic approach to
take these risks in a wide range of trends across the globe.
The day-to-day value of their portfolios can be highly
volatile but precisely measured. This means risks of this
type of portfolio include “managed volatility”.
Volatility and uncertainty are different. A Managed
Futures portfolio takes calculated risks resulting in
volatility to capture the moments of uncertainty.
Why is this important?
Most investments are exposed to less volatility day to day,
but really suffer when things are uncertain. This means
when things are volatile it’s bad, really bad.
For Managed Futures, this is really the opposite. Volatility
is the norm and uncertainty is an opportunity. For
traditional investments, volatile is not the norm and
uncertainty is definitely not an opportunity.
In other words, THE SEDUCTION OF SAFETY IS OFTEN
MORE DANGEROUS THAN THE PERCEPTION OF
UNCERTAINTY.

52
Avoidable Surprises that Derail Even the Most
Cautious Investors
We call this “Reassuringly Volatile”.
As a trend follower, we’re often asked, “Why is your
trading program volatile?” Robustness and increased odds
for survival have a lot to do with it.
But we’re getting ahead of ourselves…
Most investors recognize that the relative volatility of any
component of your investment portfolio is unimportant,
as long as the component is uncorrelated with the
portfolio’s other assets, and improves the performance
characteristics of the portfolio as a whole.
Put more simply, if you have a volatile investment, it
should be okay, as long as the risks impacting the different
types of investments in your portfolio do not happen at
the same time.
Many people understand you usually need to take risk to
get a return, but that doesn’t mean they like the volatility.
Remember, risk is both volatility, changes in prices, and
uncertainty, when things do not end up as you expected.
Volatility is measurable, and uncertainty is not.
Because we can measure volatility, we can measure risk
(and to a large extend manage it), but this is not the case
with uncertainty.

53
Despite the reassuring fact we can measure volatility;
many people still find it difficult to actually invest in a
potentially beneficial yet volatile strategy.
Sounds familiar?
Okay, let’s keep going.
Dr. Druz wrote a great piece back in the 1990s, from
which we quote pieces below about why he believes
volatility should never be a concern with a systematic
futures investment and, in fact, why volatility is to be
expected when a manager is doing things right!
The rationale for futures systems trading
“The Tactical method is a “systematic”, as opposed to a
“discretionary”, approach to futures trading, and the
opinions expressed in this paper apply to systems
trading, not discretionary trading.
(Systematic approaches are designed apriori and
discretionary are left to the discretion of a person in the
heat of the moment.)
In a systems approach, all trading decisions are made
by following algorithms that are specified exactly and
are followed precisely. Decisions are totally
unemotional and may therefore be established in every
case on statistically validated trading principles.”
(Put simply, systematic is meant to stick to the plan and
avoid the risk of over-reacting.)

54
 “Systems trading works because futures markets are
not efficient in the classical sense: price movements
(“trends”) that are mathematically distinguishable from
unprofitable random behavior occur with significantly
greater than chance frequency.”
(Markets are less rational than we would think, and it
takes an unemotional approach to handle this.)
This deviation of futures markets from mathematical
efficiency was addressed as early as the 1960s by
papers in the Journal of Finance, yet astonishingly
continues to be ignored by much of the academic
community, perhaps because academics are more
familiar with stocks which indeed behave more
randomly.
Why futures behave as they do is beyond the scope ….
There are, however, whole families of quantifiable
systems that can be shown to be profitable in futures
markets.
If this is a shock to any academic types, my apology. Of
consolation perhaps, systems trading is by no means a
free lunch, as I will explain.
What you should know about systems trading
Systems lend themselves to computerization and
rigorous historical testing.
For over 20 years I have examined hundreds of types of
systems, across multiple variable parameters, analyzing
literally tens of thousands of systems. These four
55
 conclusions about futures systems trading have been
overwhelmingly supported by my research:
1. The majority of futures trading systems do not
hold up over time.
A large number of systems are “curve-fit”. This means
that the parameters chosen, and the rules applied are
relatively specific to the type of markets they were
designed for. Also, those systems that are not
specifically curve fit are often appropriate only for
certain types of markets, i.e. “market-fit”. Neither curve-
fit nor market-fit systems are stable over time.
To illustrate, the family of systems that get their trading
signals from increases in the near-term volatility of the
markets can be highly curve-fit and notoriously
seductive.
They may appear to work beautifully, with minimal
drawdowns for protracted periods. However, when
market conditions change, such systems can be
disastrous. They certainly do not work in slowly
trending markets.
Additionally, if volatility does not increase when a
market changes direction, losses can accumulate very
dramatically with many volatility-only signaled
systems.
Various types of oscillator systems also fall into the
category of systems that works well for certain periods
only when markets behave in certain ways.

56
 In fact, the majority of all systems that initially appear
to be excellent will be found to be unstable over time!”
(In other words, it is not as easy as it looks on paper or in
a back-test.)
2. Stable trading systems tend to be longer term in
nature.
Most systems that are very short term, holding trades
on the order of one day to one week, appear to be
unstable over time.
There are again excellent examples of short-term
systems that work well in certain types of market
conditions. But once the market conditions are well
defined, it is usually too late to implement the systems.
The shorter-term systems that do, in fact, seem
relatively stable over time, unfortunately suffer so much
from transaction costs and skids on fills that they are
most commonly rendered unattractive once real-life
costs are figured in.
The stable systems seem to be those that capitalize on
market inefficiencies, trends, which play themselves out
over multiple weeks or months. These are the
timeframes for which many successful families of
systems exist.

57
 3. For a system to succeed, it must be followed
religiously.
If you design a system to capitalize on longer term
trends, once you appropriately integrate portfolio-
selection and money-management strategies (extremely
important!), it is surprising that your choice of type of
system or parameters thereof is often quite uncritical
over the long run!
Certain types of systems do perform better than others,
and selecting certain clusters of variables within a
system will affect system performance.
But what really counts is this: once a system’s
algorithms and parameters are established, the system
must be followed exactly and religiously. A system
cannot be second-guessed or used intermittently. Values
of variables cannot be altered (unless so dictated by the
pre-tested algorithms, i.e. adaptable systems).
Parameters cannot be arbitrarily changed.
The idea is the probabilities in any particular system
must be allowed to play themselves out over many
trades.
For example, suppose a system enters a trade relatively
quickly after an apparent market turn, only to be
stopped out with a loss that would not have occurred
had the system reacted more slowly.
Suppose the same system subsequently enters another
trade in similar circumstances. Yet being in the market

58
quickly this time more than makes up for the loss on the
previous trade. Since the first trade was a loss because
of quick entry, the natural human tendency to wait a
little longer to enter the next trade, a losing strategy
overall, is avoided in a religiously followed systematic
approach.
As a corollary, it is a dangerous practice to replace one
system with another during any period, particularly
when the one is performing poorly with respect to the
other.
This is not to say that a truly superior system, if
developed, should not replace an inferior one; simply
that relatively similarly performing systems should not
be switched back and forth.
4. The robustness of a trading system is
proportional to its volatility. This is the no-free-
lunch part.
A robust system is one which works and is stable over
many types of market conditions and over many
timeframes.
It works in German Bund futures and it works in Wheat.
It works when tested over 1950–1960 or over 1990–
2000.
Robust systems tend to be designed around successful
trading tactics, classical money management
techniques, and universal principles of market behavior.

59
 These systems are not designed around specific types of
markets or market action.
And here is the amazing thing about robust
systems: The more robust a system, the more
volatile it tends to be!”
PLEASE READ THE ABOVE SENTENCE AGAIN!
A little bit of systematized volatility is good for you.
Thank you!
Dr. Druz continues…
“This is because robust systems are not optimized to
particular markets or market conditions.
The converse is also true.
You can design systems with excellent returns and low
volatility on historical testing, but which work only for
given periods in given markets. These systems tend to be
curve-fit or market-fit and are not robust.
For a system to have the highest odds of profitability
over time and markets, the inescapable tradeoff is
volatility.
Diversification is used of course, but it will only dampen
the volatility so much.”
Pretty powerful stuff! Wouldn’t you agree?
We think he makes such an important point, because so
many investors, even today, confuse volatility with risk.
But not you of course.
60
We hope the wisdom of Dr. Druz will keep you inspired,
enthusiastic, and energized as you continue reading. If you
think it’s a bit technical for your tastes, keep on reading as
we plan to make it all clear.
Come to think of it, volatility is like turbulence when you
are flying.
Most people would say it does not feel nice while it’s going
on, but you know the plane is built to handle it and you
also know that you will end up at the destination you
desire.
It may seem counterintuitive, that volatility can be a good
thing, but don’t try to avoid it. Don’t try to brush it under
the rug. Embrace it.
As in Martial Arts, use the power of the counter intuition,
the power of the “opponent”, the power of volatility to
your advantage.
This truth will set you free. Trend following will do the
same.
Give yourself permission to enjoy the journey, instead of
living in fear of the next crisis that may wipe out a lot of
your hard-earned savings.
Can you imagine that? We know it seems unbelievable,
but facts are facts!
And know this:
All the information we share is practical and easy to
implement, if you know an established futures manager

61
with a long, successful track record which just happens to
be reassuringly volatile! and a fair fee structure of course.
There is nothing like when a manager has some real skin
in the game, unlike all the mutual fund managers you will
see on CNBC and Bloomberg TV!
And if you don’t, fear not. We are here to help.

We Interrupt This Book with an Ad

THE LAZY MAN’S WAY TO RICHES

“Most investors are too busy trading for a living
to make any money.”
I used to trade hard. The 18-hour days, five days a week. But
I didn’t start making big money until I traded less, a lot less.
For example, today, I only have to spend an hour or two per
calendar quarter in order to keep my investment portfolio
fully in tune with what I should be invested in.
What if I told you there are companies out there that will
implement this overlooked strategy for you, who are so sure
that you will make money from the Lazy Man’s Way to
investing that they won’t charge you any fixed fees, but only
share in the profits you actually make.
How is that for an irresistible offer? You’d be a darned fool
not to accept.

62
On top of this, they will give you the biggest bargain of your
life.
They will provide you with a strategy that took them more
than 40 years to perfect: How to make money The Lazy
Man’s Way.
Okay, now I have to brag a little. I don’t mind it, and for
some it’s necessary to prove that reading the rest of this ad
could be the most profitable thing you ever did.
I live in a home that’s worth $500,000. I know it is, because I
turned down an offer for that much. My mortgage is less
than half of that, and the only reason I haven’t paid it off, is
my Tax Accountant says I’d be an idiot.
My ‘office’, about a mile and a half from my home, is right
on the beach. My view is so breathtaking that most people
comment that they don’t see how I get any work done. But I
do enough. About six hours a day, eight or nine months a
year.
The rest of the time we spend at our mountain ‘cabin’. I paid
$300,000 for it, cash.
I have two boats and a BMW. All paid for.
We have stocks, bonds, investments, cash in the bank. But
the most important thing I have is priceless: time with my
family.
And I’ll tell you just how I did it: the Lazy Man’s Way, using
a strategy a lot of financial advisers love to hate.
It doesn’t require ‘education’. I’m a high school graduate.

63
It doesn’t require millions of dollars to get started, as it used
to do in the ‘old days’.
It doesn’t require ‘luck’. I’ve had more than my share, but
I’m not promising you that you’ll make as much money as I
have. And you may do better. I personally know people who
have made millions of dollars in the past five years. But
money isn’t everything.
It doesn’t require ‘talent’. Just enough brains to know what
to look for. And what’s more.
It doesn’t require ‘youth’. One woman I know using this
approach is over 70. She’s travelled the world over, making
all the money she needs, doing only what I taught her.
It doesn’t require ‘experience’. A widow in Chicago has been
averaging $100,000 a year for the past five years, based on
her $1-million portfolio.
What does it require? Belief. Enough to take a chance.
Enough to absorb what is in this book. Enough to put the
principles into action. If you do just that, nothing more,
nothing less, the results will be hard to believe.
You don’t have to give up your job. But you may soon be
making so much money that you’ll be able to.
I know you’re skeptical. After all, what I’m saying is
probably contrary to what you’ve heard from your local
financial adviser, your friends, your family and maybe
everyone else you know. I can only ask you one question.
How many of them are millionaires?

64
So, it’s up to you:
Five years from today, you can be nothing more than five
years older, or you can be on your way to early retirement,
with time to do all the things you always dreamt of doing,
together with the people who mean the most to you.
You decide.
Call me today to get started on 1 800.PRO.FIT
END

Is this the kind of ad we would write if we had to sell

information or a course about Managed Futures?
Perhaps. It certainly has some truth to it.
But as you already know, this book was virtually free,
because we are passionate about sharing our knowledge
and experience when it comes to this life-changing
investment strategy.
Now, let’s get back to more serious matters.
We left off having described to you the benefit of having
strategies that are reassuringly volatile, and we were just
about to tell you how you can start using Managed
Futures in your own portfolio.

65
How to use Managed Futures in
Your Portfolio
As we mentioned earlier, Managed Futures is a strategy
that does well when “things happen”. Things happen all
the time but more things, e.g. trends, happen when there’s
a crisis or stress in our financial markets that we don’t
expect or want to deal with.
Given this, how do we mix this investment strategy with
the solemn fundamental equity and bond investments we
all know and love (most of the time)?
If you are new to this space: keep it simple.
SOME EXPOSURE IS BETTER THAN NONE.
As you become more comfortable and knowledgeable
about the strategy, add a manager or two as this will help
you further diversify your investments in this part of your
portfolio. It will help smooth out your experience as each
manager or fund has a different interpretation of how to
follow a trend. They can be highly correlated but have
very different returns in a given year.

66
Why is this?
Each market trend is somewhat unique, and each trend or
event unfolds in a unique way. One manager may catch it
better than another.
Let us explain.
Trend following managers use rules to enter and exit and
each builds his or her system slightly differently. These
small differences can create differences in performance
just due to timing. In general they have the same
approach, but for each event, they can be very different.
Timing is tricky. Some managers get each trend right
whilst others don’t during a certain period.
On average, over lots of different trends, they may look
more similar. The correlation may even be high over the
long run, yet returns can be very different.
Within the trend following space, it’s easy to buy
something with high correlation to the trend following
indices, but you shouldn’t expect returns across managers
to be the same.
This is why we would suggest you aim for more than one
Managed Futures investment. Combining them allows for
reduced risk even within this part of your portfolio.
Always remember… ONE IS BETTER THAN NONE and a
few diversifies the overall approach.
But “how much should I invest in Managed Futures”, you
may ask.

67
Honestly, it depends on the type of manager you want to
work with and on your own risk tolerance.
Managed Futures strategies tend to vary based on a
spectrum from pure trend strategies to trend strategies
mixed with other “stuff”.
First, what is your objective?
Crisis Alpha, i.e. you want to add some divergence to your
portfolio, an equity/bond hedge, and performance during
an extreme environment with liquidity?
Or…
Most of this, but a smoother ride with some other risk
premia (add carry, macro, or other things).
The first strategy, group “A” is often called “pure trend
following”. This variation of the strategy takes the most
risk and often has the most profit when there are lots of
trends around. This type of Managed Futures strategy is
often meant to “strike” when it hurts everywhere else.
This is the true “risk mitigator” aimed at making a real
difference in a portfolio.
For this type of allocation, an investor has to consider how
much “bang for their buck” they need. If the allocation is
too small or the manager has too low risk, it won’t have
enough “oomph” to do much during a crisis.
The second (group “B”) is smoother but less of a crisis
alpha strategy. The advantage here is that it can give you
other opportunities when not much is happening to stress

68
global markets. The downside is that these opportunities
are often aligned with your stocks and bonds, so they will
also possibly have trouble when bonds and stocks do.
This allocation should be considered a strategic allocation
in the total portfolio, with a caution that it will not be a
pure crisis alpha provider.
This strategy can make sense for investors who look to
add these other strategies anyway. If you want “carry”,
“macro”, etc. in your portfolio, it might be a good idea to
put it together with pure trend following.
One important note, group “A”, the “pure trend” portfolio,
has the biggest punch but it’s harder to hold over longer
periods of time. Group “B” is easier to hold if you don’t
think you can wait for the next big bump in trend.
Let’s recap:
Start with a single allocation. One investment is better
than none.
A few investments are better to even out the different
approaches of each manager.
Remember to not buy high and sell low.
Determine your objective. Do you want crisis alpha (pure
trend) or trend plus other stuff (multi-strategy)?
Investment size should depend on your objective and risk
profile.

69
If you want a punch when nothing else works, make sure
you have a big enough allocation of your overall portfolio
allocated to trend following.
If you want something to add diversification and possibly
a smaller punch, consider how much tolerance you have
for non-correlated investments.

Who Invests in This Stuff?

What if we could construct an index in a totally unique
way to classify people who invest in Managed Futures?
To be at the top of the index you should fit one or more of
the following:
1) you must have a life,
2) you must have a sense of humor,
3) you must have intelligence and be an independent
thinker,
4) you must be a generous and giving person, but at
the same time,
5) you must refuse to take sh*t from anyone who
doesn’t have a gun to your head,
6) you must be willing to take chances and cheerfully
accept losses,
7) you look to find ways to spend more time with your
loved ones, friends and sometimes even your
associates and strangers,

70
 8) you must be wealthy always in your mind and
therefore, very often in your pocket, and finally,
9) You must be honest and have integrity not defined
by laws but rather by the inner-core of your being.
What have we described here? Simply this:
An A Player!
Listen, we have found our podcasts, articles, TED Talks,
whitepapers, speeches, and our personalities to be like a
giant meat cleaver cutting through the sea of humanity
and separating those who have any type of contact with us
into two very distinct groups.
One group is made up of zestful, hard-working, risk-
taking, fun-loving, often entrepreneurial doers and the
other group consists of non-doers, unable to laugh at
themselves and who are scared witless at the idea of
taking risks.
Well, so what? What does all this have to do with you,
with Managed Futures, and with making money?
A lot. You see, as a general rule, it is always easier to do
business with and work with people very high on this
imaginary index (A players) and this especially true
during an economic slump.
Why?
Simply because, no matter how bad the economy gets,
these people will never succumb to a “depression
mindset”. A depression mindset is a killer for achieving

71
financial freedom and build substantial wealth. People
who have it are running scared and have totally lost the
belief (if they ever had it) they have the ability to fashion
their own futures (no pun intended).
They believe their fate is up to the economy or whatever
politician gets elected or whether they can get a “good
enough grade” from some employer or educational
institution.
Almost everyone who is high on the index is a reader and
virtually none of them are heavy TV viewers. You see,
almost all real wisdom comes from printed material and
the streets. Rarely does even a smidgen of it come from
TV.
Harsh words for some to read, but hey, this was just an
imaginary index, and you, dear reader, we know you are
an A Player!

How Trend Following Will Improve Your Life.

Okay, okay. Why do we so strongly and passionately
advocate using Managed Futures to make your portfolio
and your life better?
Listen, we all have many convergent, herd-like
investments in our portfolios. If we start to consider what
“divergent” investments might look like, we need to
consider things that like disruption and stress.

72
This is something not all of us like to think about, yet, as
many researchers have found, a little stress is good for
you. Stressing your system is like training it for the long
run.
In places like Finland and Sweden (and maybe even
Denmark), they have a particularly fun pastime. They love
saunas. Even worse, they set the heat inside to 70–80°C,
and then they jump into freezing cold Baltic Sea water!
The main idea is that stress can be good for you. Research
has proven that stressing your circulatory system will
make it better equipped for stress in life. Those who can
add a little stress loving experience into their lives tend to
live longer and experience less heart related death.
The same is true for your portfolio. It is not only about its
wellbeing… It’s essential to your portfolio being well.
If you include investments like Managed Futures that
thrive in moments of stress and disruption across the
globe, you will be more balanced in how your portfolio
handles different market scenarios.
This works because Managed Futures strategies aren’t
about value or predicting the future, they are about having
a portfolio that reacts well to changes in the market.
Managed Futures strategies like risk and they “follow”
where the market goes.
If things happen unexpectedly and turn out differently
than we expect, this approach will be successful. However,
if things continue as planned, the strategy may not find as

73
many opportunities but should still be profitable of
course.
The key is that we all need a little convergent,
comfortable, understandable risk-taking in our portfolios,
but we all also need a little robustness. Something that can
enjoy a challenge or crisis and protect our portfolios.
Similar conclusions can be found in the famous research
of Harry M. Kat, in which he concludes Managed Futures
and traditional investments are indeed a match made in
heaven!

74
Putting Everything Together
Managed Futures is a highly adaptive and unemotional
investment. It’s global, multi-asset class, liquid, with the
ability to be long or short. This allows the strategy to find
opportunities when things happen that we did not expect
or might even dislike.
If you’re an investor already owning the standard long-
only investments, adding Managed Futures can provide
risk mitigation and improve the overall risk/reward
profile of your portfolio.
It works because the strategy comes from a different
perspective. It usually thrives in the moments when most
things we own don’t and adding something with a
different profile makes your portfolio more robust during
different situations and market environments.
Finally, how to do it?
As we often said to our kids when they were young and
had to learn how to walk, “Start slow and build up your
confidence before you take a big leap”.

75
But what does that mean in the world of finance?
It means you allocate a small portion, say 10% of your
portfolio, and as you become more comfortable, build this
up to 20% or 25% allocated to this strategy.
Heck, you may end up loving it so much that you do like
we do and invest most of your liquid net worth in trend
following, but that is not where you should start.
If you want it to be more of a “hedge” to your stocks or to
have punch, choose a pure trend follower, and make sure
the manager takes enough risk to provide you with what
you want.
But do understand it is not a direct “hedge” but rather an
uncorrelated investment. So there will be times when
pure trend followers and equities are highly correlated
(like in February 2018).
But that is the way it should be at after a long bull market
in stocks, where this has been the dominant trend for
these strategies.
If you are looking for general diversification, find a multi-
strategy Managed Futures manager and use them to add
investments outside your own scope of investment
expertise. Use them to find opportunities, long and short,
which make sense to add to your overall portfolio.
A few final words of caution
As with any investment; Don’t buy high and sell low.
Don’t do what most investors do, which is:

76
BUY IT WHEN YOU WISH YOU HAD ALREADY BOUGHT IT,
AND SELL IT BEFORE YOU MOST NEED IT.
Leave the trend following to the pros and their systems
which are built to do this!
We realize all of you aren’t simple going to abandon all
your stocks, bonds, and trusted advisors and put a big
chunk of money into Managed Futures, but hopefully this
book should have given you much food for thought that
will have a positive influence on your future investment
decisions.
Oh, and one more final piece of advice:
Don’t buy another book on trend following or Managed
Futures. Don’t read another paragraph on this subject,
until you have digested all the content in this book.
YOU DON’T NEED TO BE AN EXPERT TO GET STARTED.
And please don’t by an “off the shelf” trend following
system and think you can compete well against those who
have successfully done it for decades.
Think about all the times you told your parents, “Don’t
worry. I’ll figure it out”.
Sure, a little bit of education and research doesn’t hurt,
but just like the pioneers of trend following, you will learn
a hundred times more from doing than from reading a
10th book on trend trading or investing.

77
 Imaging a life with Less. Less work, less stress, less time
spent in front of the computer, less worry about your
financial future.
Now imagine a life with More. More time to do the things
you want, more meaning and purpose, more impact in the
world, more growth both financially and personally, more
contribution, contentment and abundance.
We believe that embracing Managed Futures and trend
following can give you a life with less of the things you
LOATHE and more of the things you LOVE. The sooner
you start, the sooner you will experience this.
Now the rest is up to you. We wish you luck!
And finally…
MAY THE TREND BE YOUR FRIEND!

78
79
About the Authors

Niels Kaastrup-Larsen is a Swiss-based dad, husband,

entrepreneur, and hedge fund manager turned podcaster. His
podcast, TopTradersUnplugged.com, is the leading podcast
within the hedge fund industry. He is also the host of the
podcast, Top Traders Round Table, exclusively sponsored by
CME Group, the world’s largest futures exchange.
Niels divides his time between running DUNN Capital
(Europe), his podcasts, and his family’s charity,
kidsheart.org.
Professionally, Niels wants to revolutionize and democratize
the hedge fund industry, by providing access to some of the
best minds in the industry. On a personal level, Niels wants to
improve the way schools in Switzerland are equipped to
handle cardiac arrests and other heart-related emergencies
following his own son’s cardiac arrest in 2011.
His bio could be much longer, but in the end, all you really need
to know is that Niels is a father, a husband, passionate about
hedge funds, CTAs and trend following as a life changing
investment strategy, and a man who cares deeply about, loves,
and admires those closest to him. He is humbled and grateful
for the opportunity to create, to connect, and to serve.

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Kathryn M. Kaminski is an author and specialist in systematic
investing.
She co-authored the book “Trend Following with Managed
Futures: The Search for Crisis Alpha” published by Wiley
Trading in 2014.
Kathryn held prior positions as director, investment strategies
at Campbell and Company and senior investment analyst at
RPM, a CTA fund of funds. Kathryn has been and is currently a
senior lecturer at MIT Sloan. She previously held the position
of Deputy Managing Director of the Institute for Financial
Research and affiliated faculty at the Stockholm School of
Economics in the department of finance. She has also been a
visiting professor at the Swedish Royal Institute of Technology
(KTH).
Her work has been published in a range of industry
publications as well as academic journals.
In 2015, Kathryn was listed as one of the top 50 leading
women in hedge funds. Kathryn holds a BS in electrical
engineering from MIT and a PhD in operations research from
MIT Sloan.

81
Here’s What To Do Next…
“Most investors are too busy trading for a living
to make any money”

Like most people, you want to make more money from

your investments and be better prepared and protected
from the next financial crisis. But the difficult part is
overcoming the fear of doing things differently, and
avoiding the confusing advice that will stall your best
intentions, and leave your dreams unfulfilled…

That’s where we come in.

We help people just like you cut through the nonsense to

achieve higher returns from your portfolio, whilst being
better protected during crisis periods And the best part
is… it will only take you a few hours work each month.

Step 1: Once you’ve read this book, listen to our

podcast at TopTradersUnplugged.com, where
Managed Futures legends (with real skin in the game)
share their experience and knowledge.

Step 2: Discover the mindsets that are growing or

slowing your portfolio by completing your free
Portfolio Scorecard at MyPortfolioScore.com
We know you want better investment returns to help
achieve your life goals sooner, and we believe Managed
Futures is the way for you to build a safer and better
performing portfolio.

If you have any questions about this investment approach

or how we can help you achieve better results through
Managed Futures, please send us an email to
info@toptradersunplugged.com. We look forward to
serving you.