A Solid This free e-book, provided by Trade Angle Advisors, a leading Commodity

Trading Advisor, overviews managed futures and alternative investments

Investment so that you can make an informed decision if they are suitable for you as a
risk-managed investment for your portfolio.

for Your Future How can individual and institutional investors achieve their
goals of high rates of return while at the same time achieving
acceptable risk?
Managed Futures are a
favored investment of The answer is Managed Futures.
the world’s wealthiest Managed futures combine the professional market experience, focused
individuals and discipline, and trading acumen of a licensed Commodity Trading
Advisor (CTA) to deliver a documented, historical track record of solid
institutional investors. performance and risk management.

Are Managed Futures Right for You?

TRADE ANGLE
To participate in managed futures—also known as alternative investment
ADVISORS strategies—you must meet certain qualifications. But the good news
is that you do not have to be a millionaire to participate in a proven
www.tradeangleadvisors.com investment vehicle that the wealthy seek out.

DISCLAIMER and RISK WARNING: The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of
leverage that is often obtainable in commodity trading can work against, as well as, for you. The use of leverage can quickly lead to large losses as well as large gains. In some cases, managed commodity accounts are subject to
substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to those charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure
document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor (CTA). The regulations of the commodity futures trading commission (CFTC)
require that prospective clients of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that certain risk factors
be highlighted. The disclosure document is readily accessible at this site. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the
disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking on the prominently
placed disclosure document link on the following pages. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document, which also will
be provided to you at no cost. The CFTC has not passed upon the merits of participating in any of the following trading programs nor on the adequacy or accuracy of the disclosure document. Other disclosure statements are
required to be provided to you before a commodity account may be opened.
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?

Managed Futures
A managed futures account refers to a type of alternative investment KEY BENEFIT Managed futures
that has many similarities to a mutual fund. But unlike typical mutual are often not tied to the extreme volatility,
funds, managed futures accounts take trading and investment positions ups, and downs of the stock market because
both long and short in futures contracts, government securities (such managed futures accounts are not trading or
as bonds), options on futures contracts, and sometimes even currency investing in stocks.
futures which are a backbone of the economy.

Consider Managed Futures!

Managed futures are a type of investment that allow investors to
access the world’s futures markets through professional money manag-
ers known as Commodity Trading Advisors (CTAs). CTAs are a type of
professional trader who is specially licensed to give advice regarding
the buying and selling of futures or options contracts. The manager
makes all the decisions on a client’s behalf through a revocable power
of attorney.
KEY BENEFIT Managed futures
use a wide range of financial instruments and
are flexible in their investment options. You
can choose between managers who specialize
in certain areas or managers who take advan-
tage of a wide variety of opportunities.

Commodity Trading
Advisor (CTA)
CTAs are registered with the Commodity Futures Trading Commission KEY BENEFIT Not only are CTAs
(CFTC) and are typically members of the National Futures Association individually licensed, they are subject to regu-
(NFA). Under regulation, CTAs are required to provide adequate disclo- latory oversight by two governing bodies, the
sure documentation to investors. A CTA is defined as “any person who, CFTC and the NFA.
for compensation or profit, engages in the business of advising others,
either directly or through publications, writings or electronic media, as
to the advisability” of buying or selling commodity futures or option
contracts.

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©2008 Trade Angle Advisors
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?
The Role of a CTA
Investment companies called Commodity Trading Advisors (CTAs) trade
various strategies and systems that utilize futures contracts. These com-
panies are like a futures brokerage from the standpoint of executing
trades on your behalf. Except that instead of simply placing the trades
that you request, they are deciding on the trade entries, exits, and man-
agement themselves. These financial managers of commodities are the
experts in the field and are often a wise choice for qualified investors
to consider. Investment is all about the net returns, and many of these
companies that specialize in a specific area like this are outperforming
the market, which is an option worthy of evaluating and considering.
Futures Contracts
Futures contracts are regulated financial instruments that trade on
futures exchanges that offer investors, traders and hedgers an oppor-
tunity to buy or sell a standardized quantity and quality of a specific
commodity at a specified date in the futures—and at a specific price.
These financial contracts obligate a seller to sell an asset when a buyer
has placed an order to purchase the same asset. This standardization is
a key element of trading futures contracts since every buyer and seller
of a particular futures contract knows what they are buying or selling in
terms of how the instrument is described.
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©2008 Trade Angle Advisors
KEY BENEFIT We all know people
who have tried their hand at trading and/or in-
vesting in the markets. Some have speculated
on stocks, others in real estate, and others in
gold mines. Needless to say, every investment
field has its novices, who typically lose mon-
ey—and its professionals, who typically earn
money. By professionals, we are referring to
people who are consistently profitable in their
field of investment endeavor. In the field of
trading futures and commodities, the experts
in the field are CTAs. Rather than learning to
become an expert, working with a CTA allows
you to leverage their professional expertise.
KEY BENEFIT Without the stan-
dardization of futures contracts, the world
could not trade commodities and futures
which are so vital to the survival of their econ-
omy. This standardization allows the entire
world to participate in buying and selling of
known products with set attributes. As such,
supply and demand for a particular commod-
ity or futures contract can be measured. This
allows traders and investors in these products
to apply mathematical and statistical meth-
ods to measure potential supply and demand
imbalances—and capitalize on their trading
strategies in these markets.
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?

Examples of Futures Contracts

Futures contracts include the basic raw goods and materials that all KEY BENEFIT As you can see,
economies need to function. Examples of these goods are: these commodities are a vital component of
• Agricultural commodities, such as corn, wheat, and soy the world’s economy and actually have mea-
surable supply and demand factors where the
• Energy commodities, such as crude oil, gasoline, and natural gas
opportunity to trade and invest in them can
• Metals commodities, such as aluminum, copper, silver, gold, and platinum
be determined.
• Index futures, such as the Dow, S&P, NASDAQ, and Russell indices
• Currency futures, such as the US Dollar, Japanese Yen, British Pound,
and Swiss Franc

Trading Regulations of
Commodities
Commodities trade on many regulated worldwide exchanges such as:
• Chicago Mercantile Exchange—or CME (www.cme.com)
• New York Board of Trade—or NYBOT (www.nybot.com)
• Intercontinental Exchange—or ICE (www.theice.com)
• London Metals Exchange—or LME (www.lme.co.uk)
Already invest in the
stock market?
Consider Managed Futures!
Trading commodity futures is a great way to diversify your portfolio
and protect yourself against fluctuations in other areas of investing.
Investment theory and practice confirms that diversification can provide
protection to a traditional investment portfolio. With commodity futures,
while you may think you cannot make profit from trading in commodity
futures—just the opposite may be true. But it is also a means to protect
against losses in the short term from other aspects of your portfolio.
KEY BENEFIT These commodities
are traded in highly structured and regulated
worldwide markets on a daily basis. These
markets become a global focal point for buying
and selling these standardized commodities.
That, in turn, provides liquidity in the futures
markets which is a requisite for getting into and
out of trading positions. Professional traders
and investors would have it no other way.
KEY BENEFIT An investment
in managed futures provide the means to
achieve valuable portfolio diversification
which may protect you against losses in the
short and long term from other aspects of
your investment portfolio.

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©2008 Trade Angle Advisors
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?
How is it possible for Managed
Futures not to move up or down in
tandem with the Stock Markets?
Managed futures have a historically low correlation to investments in
stocks. This aspect alone can enhance the returns of traditional stock
investment portfolios because when stocks are down, managed futures
accounts may often be up during the same period. Why? Because man-
aged futures derive their returns from trading financial instruments that
are different than traditional investments in stocks. Managed futures
accounts trade futures contracts which are an entirely different asset
class. The up or down movements of futures in the market are based
on supply and demand factors that are readily amenable to technical
analysis methods for trading these instruments.
How Your Managed
Futures Account is
Traded and Managed
Managed futures accounts are traded, operated, and managed by
licensed Commodity Trading Advisors, also known as CTAs.
CTAs are licensed and regulated by the Commodity Futures Trading
Commission (CFTC), a US governmental regulatory agency
(www.cftc.gov) and the National Futures Association (NFA), an inde-
pendent regulatory body that safeguards the integrity of the futures
markets (www.nfa.org).
One of the NFA’s primary responsibilities is to enforce regulatory com-
pliance and protect the public interest by screening and registering
firms and individuals who wish to conduct business with the public.
Page 5
©2008 Trade Angle Advisors
KEY BENEFIT Adding managed
futures to a portfolio of traditional investments
such as stock and real estate has been shown
by many studies to add a vital element of
diversification. Numerous studies have shown
that adding managed futures to such a port-
folio can reduce overall portfolio volatility and
risk while enhancing positive returns on your
investment.
KEY BENEFIT Opportunities to
make a good return on investment (ROI) are
abundant in many different fields: real estate,
land deals, and various business ventures, to
name a few. Each has its own risk profile. But
the backbone of a successful investment starts
with structure, regulations, laws, compliance,
auditing and other such standards. Having
sound and stable regulatory agencies manag-
ing the individuals and companies who are
investing your money is a key aspect of risk
management. And managed futures are fully
regulated.
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?
Do I need my own futures
brokerage account to invest in
Managed Futures?
Yes, you do, but the traditional definition of a commodities broker has
changed somewhat over the years. This is because the preponderance
of online and discount brokerages have opened up entire new realms
of options for people who are looking to invest in managed futures. A
commodity futures broker is an individual broker or a firm that buys and
sells commodity futures contracts on behalf of clients.
Regulations on Accessing the
Money in Your Account
Your CTA cannot access the money in your account. Your money can
only be accessed by you or the Futures Clearing Firm (FCM). Any fees
paid to the CTA come from the clearing firm which is already approved
by you in the managed account forms that you authorize and submit
prior to opening your account.
Account Statements and Detailed
Trading Records
The great thing about managed futures is that you are authorizing an
expert in the field of trading and commodities to trade your account on
your behalf. But this is not a blanket authorization where you are kept in
the dark.
You will have access to the CTA’s historical audited performance record
before you begin. After you authorize the account to be traded, you will
also receive ongoing detailed trading records at least once a month—
and often you will receive daily statements showing the actual trades
that have taken place in your account.
Page 6
©2008 Trade Angle Advisors
KEY BENEFIT Having your
managed futures trading account with a
broker ensures that you have a licensed
representative acting on your behalf to help
you choose the right Commodity Trading
Advisor (CTA) that meets your investment
goals and is suitable for your risk profile.
KEY BENEFIT The US futures
markets are strictly regulated. And every party
involved in your managed futures account—
from the CTA—to your broker—and to the
clearing firm, must uphold these regulations
under penalty of law. The only parties who
can remove funds from your managed futures
account are you—and anyone else you assign
under contractual agreement.
KEY BENEFIT The whole idea
behind managed futures is that instead of
having to learn to trade the futures markets
yourself—a multi-year venture to learn, at
best—you are authorizing an expert in the
field to trade your account on your behalf. As
such, since the futures brokerage account is
yours, you have access to trading statements
and records just as if you were trading the
account yourself.
 TRADE ANGLE
ADVISORS TAA eBook: Are Managed Futures Right for You?

Fees associated with participating

in Managed Futures
A simple way to look at managed futures is to consider that you are KEY BENEFIT Although other fees
paying for the expertise of having a professional CTA trade your futures may apply (such as brokerage commissions
account for you with their method of trading—which is fully disclosed and/or a nominal account management fee),
to you in advance. The knowledge and expertise that allows a CTA to the pay-for-performance basis is very fair
have garnered a particular track record came at the expense of hard work, because it gives the CTA the highest incen-
diligent study, licensing, successful trading experience, and other factors. tive to make money on your behalf. If they
Therefore, many CTAs prefer to be compensated on a performance basis don’t make money for you, they do not earn a
which means that if they perform—or make money in your account— performance fee.
only then will they earn a performance fee.

The Bottom Line Trade Angle Advisors

To recap, the advantages of managed futures are: is a Commodity Trading
Advisor registered with
• Diversification of your portfolio
the Commodity Futures
• Access to diverse markets around the world
• Profit potential if the market goes up or down Trading Commission and
• The futures industry is regulated—as are Commodity Trading Advisors is a registered firm of the
• The potential for reduced portfolio volatility risk National Futures Association.
• Potential tax benefits with futures compared to equities
Trade Angle Advisors is committed to creating
world-class investment strategies backed by
I AM READY! How do I get started? their combined decades of experience and
achieving superior investment performance,
The easiest way to get started in managed futures is to contact your while delivering superior quality client service.
futures broker to evaluate your qualifications and suitability for a man-
aged futures account.
TO L E A R N M O R E or to get
Once that has been determined, discuss with your broker some of the answers to your questions, please visit us at
options available in the marketplace between the many types of CTAs www.tradeangleadvisors.com. Fill out our
and what types of programs they offer. contact form or call us directly at 919-373-4368.

Page 7
©2008 Trade Angle Advisors
DISCLAIMER and RISK WARNING: The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suit-
able for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against, as well as, for you.
The use of leverage can quickly lead to large losses as well as large gains. In some cases, managed commodity accounts are subject to substantial charges for
management and advisory fees. It may be necessary for those accounts that are subject to those charges to make substantial trading profits to avoid depletion
or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account
by the commodity trading advisor (CTA). The regulations of the commodity futures trading commission (CFTC) require that prospective clients of a CTA receive
a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client’s commodity interest trading and that
certain risk factors be highlighted. The disclosure document is readily accessible at this site. This brief statement cannot disclose all of the risks and other signifi-
cant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such
trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking on the prominently placed
disclosure document link on the following pages. You will not incur any additional charges by accessing the disclosure document. You may also request delivery
of a hard copy of the disclosure document, which also will be provided to you at no cost. The CFTC has not passed upon the merits of participating in any of the
following trading programs nor on the adequacy or accuracy of the disclosure document. Other disclosure statements are required to be provided to you before
a commodity account may be opened.

Trade Angle Advisors | www.tradeangleadvisors.com ph. (919) 373-4368