CycleFutures

Do I need to auto-trade?

Yes, you will need to use auto-trading in order to receive our trades.

 

What is the maximum amount of trades that will be open at any one point in time?

Only 1 position will be open at a time for each strategy.

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What are the margin requirements to trade the 10 year note?

Because we hold positions overnight the margin requirement is typically $2025 per contact. Margin requirements may vary from time to time.

 

How long do you hold these trades for?

We may hold the trades anywhere from less than a day to up to a month or more. Market movement will dictate our holding time.

 

Do you have a specific profit goal in place prior to placing your trades?

Our strategies do use specific profit and loss targets, but these targets are often not met due to a reversal pattern emerging. The majority of our trades close due to a reversal trade.

 

Do you go long and short on your positions?

Yes, we go long or short on our positions.

 

Are stop orders placed at the time you open your positions?

Stop loss criteria is built into our strategies. The stop is not placed until the criteria is met during the trade, at which point the stop trade is executed instantly.

 

What is the broker commission cost to trade 1 contract?

Because this is a managed account the rates are a little higher than self directed accounts. The cost per contract through ATC Brokers is $15.00 per round turn. Discounts may apply based on individual account size.

 

What is one point worth on the 10 year note?

One point on the 10 year note is made up of 64 ticks. Each tick is worth $15.625. So each point is then worth $1,000 (15.625 x 64 = $1,000)

 

Can I trade Futures within my IRA?

Yes, this will require additional paperwork. Please consult with ATC for further details.

 

What is the minimum account size?

We would recommend a minimum account size of $5,000 per strategy. This is only a suggested starting amount to help cover drawdown. You can start with less, but additional funds may be required should trade drawdowns occur. Allocation amounts will be discussed in futher detail on the performance page.

 

What are the benefits of going with one strategy vs the other?

The Alpha strategy has been back-tested with over 10 years of data, and may represent a better barometer of the market over the intermediate term. The Delta strategy has been tested over 10 years of data, and may require more frequent tuning. We feel the strategies compliment each other. It’s not unusual to see Delta trade more often in both directions while Alpha remains in one trade, while Echo will take more trades than any of the 3 strategies.

 

Are stop orders placed at the time you open your positions?

Stop loss criteria is built into our strategies. The stop is not placed until the criteria is met during the trade, at which point the stop trade is executed instantly. We occasionally enter trailing stops if we feel a trade is running contrary to our cyclical view of the market.

 

Do you manage my account ?

No. Your funds are deposited with ATC Brokers. ATC is running our trade signals, and executing those signals for you in your account. At no point do we interact with your money.

 

Why is it on some trades that the trade is up quite a bit, then winds up exiting for a small gain or even a loss?

First, this is a mechanical trading system. One of the good things about a robot is that it doesn’t care what it should or shouldn’t do. As humans, we expect that we should be able to look back in retrospect and always pick profitable exits, but that is flawed thinking. It’s usually what gets traders into trouble, as we usually don’t know what ‘good’ bottoms or tops look like. This is why you need to allow strategies like these to work over time. One may not stand out and you could see negative results over several trades, but the story should be positive if you look back over 10 or 20 trades.

 

 

If you have any additional questions, please email us at info@cyclefutures.com

 

 

A golden rule of thumb with any investment- only invest capital that you can afford to lose. No service, including our own, can make guarantees regarding your profitability with our service. Past performance does not guarantee future performance. Our service has a great track record, but it may not continue to do so in the future. Please review our disclaimer and risk warning in order to understand all of the risks involved.