A not so short while ago, I did some web research and chose a CTA that I could trust and would statisfy my criteria.
It turns out that this CTA is down about 30% since inception, yet I have no intention, at all, to jump ship. All the reasons I had to chose them then, still hold today:
- they use 100% mechanical systems
- they have rigorous money management
- they have a well diversified and dynamic portfolio
The funny thing, of course, is that all these reasons are purely fundamental reasons
in nature! It is not like I picked a bunch of CTA's, watched their equity curve over a long period of time, and according to some technical system (MAs, envelope, whatever) decided to "buy" into that one or that other: there is no "meta" trading system that I used to select CTAs as opposed to a regular system used to pick instruments, entry & exit time and risk.
To me, this situation looks no different to the one in which I would be privy to the management of some NASDAQ listed company, knowing their products, their financial assets, their liabilities, their market ... 100% fundamental data ...