The full name of CTA is commodity trading? Consultants, that is, "commodity trading consultants", are also called managed futures.

It refers to a form of fund organization in which professional fund managers use the funds entrusted by customers to invest in futures market and options market, and charge corresponding management fees.

As a strategic method of investment, CTA is essentially a set of rules, which are very regular, including many investment categories. CTA is an important way to realize diversified investment in asset allocation, and it is gradually becoming one of the basic asset allocation of mature investment institutions.

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Quantification of CTA—

As far as investment methods are concerned, there are two kinds of CTA funds. One is subjective CTA, that is, the fund manager subjectively judges the trend and decides the trading time according to the fundamentals, research or trading experience; The second type is quantitative CTA, which establishes a quantitative trading strategy model through analysis and makes investment decisions according to the trading signals generated by the model.

Comparatively speaking, using quantitative methods to invest in futures can gain profits and manage risks well. Quantitative CTA can avoid subjective irrationality and stop loss in time in case of loss or withdrawal, thus effectively avoiding risks.

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CTA strategy research method: analyze the historical transaction volume and price data of a single variety, including opening price, closing price, highest price, lowest price, transaction volume and position, extract the rule with probability advantage, that is, the usual factor or strategy, and realize this rule with code, and assume that this rule will still exist in the future.

Finally, we use this rule to judge the future trend of varieties and make profits by opening positions, closing positions, adding positions and reducing positions. Generally speaking, CTA strategies evolved so far are basically fully automatic transactions, but there are still transactions supplemented by manual judgment.

CTA funds are more likely to appear in the form of trust investment, and the main source of income is also more likely to be profit sharing rather than management fees, which is different from existing securities investment funds and closer to private equity funds.