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.