CTAs explained

So as far as I understand Commodity Trading Advisers (CTAs) don't necessarily have to focus on commodities? They are just HFs that trade futures - is that right?

Wikipedia / investopedia definitions are a bit all over the place, can someone please explain what are the defining features of CTAs (systematic approach as far as I understood) and what is commonly meant by a "CTA" in the HF world?

Also is CTA synonymous with a "managed futures" HF?

9 Comments
 

cool thanks - and I'm guessing trend following is all about computerized models? which is the same as systematic no?

The way Ah see it, is that it took a revolution f a bihllion people for your darn short to work out!
 

oh wait so CTA can be discretionary?

So CTAs are just guys that trade futures / options on anything from commodities to currencies? That is it?

The way Ah see it, is that it took a revolution f a bihllion people for your darn short to work out!
 

yup, pretty much. they are those who are completely married to a system and those who are not (discretionary)

oh and you also left out equity futures :)

 

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