Our methodology is a short to medium term trend following strategy. We use our own proprietary trading system designed to diversify investors in the commodity futures markets on global exchanges including Currencies, emini Indexes, Financials, Energy, Grains, Livestock and Softs. Position sizing is determined by risk, equity in the account and margin requirements. Our trading system also incorporates money management stops in order to limit negative exposure to the markets.*
Systematic trading is a rational, unbiased, disciplined and objective way to trade. Systematic trading also provides a detailed formulation of our plan of action. We will interefere with the trading system's rules only under extreme market conditions which might cause the markets to react irrationally.
Minimizing volatility is achieved through diversification across a broad spectrum of financial and physical futures that have low or negative correlation.
The objective of OCM’s diversified program is capital appreciation while managing risk.
Depending upon market conditions, we generally allocate approximately 15% to currencies, 15% to indexes, 15% to Treasury instruments (US and foreign) and the remaining 55% is distributed among grains, metals, energies, livestock and soft commodities as opportunities arise. These ratios may be adjusted as market conditions change.
OCM’s risk management and trading decisions are based on quantifiable data and are executed in a methodical manner. The models utilized are designed to find trading opportunities that provide favorable risk to reward characteristics and certain positions may be closed with small losses to guard against downside risk and to make available funds that could be better employed in other markets. This approach ensures that profitable positions are held as long as possible in order to maximize long-term gains for our investors.
Optimus Capital Management utilizes a multi-faceted risk management approach based on minimizing risk exposure along with broad diversification across markets that have low correlation. Risk exposure per market category is generally expected to be 15% or less. OCM's portfolio is broadly diversified across thirty of the most active and liquid futures markets.
In addition, commodity options may be used in the program as a hedge to reduce risk exposure and enhance returns by purchasing options against core futures positions in order to limit portfolio risk.
*The use of stop loss orders does not guarantee that losses will be limited to the amount intended as certain market conditions may make it difficult or impossible to execute such orders.