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Printed From: Advisorheads
Category: Introductions
Forum Name: Greenhorn Introductions
Forum Description: MAKE YOUR FIRST POST HERE!
URL: http://www.advisorheads.com/forum_posts.asp?TID=2043
Printed Date: Mar/26/2026 at 9:08pm
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Topic: New Member
Posted By: combroker
Subject: New Member
Date Posted: Dec/23/2010 at 3:02pm

I was previously at RR forum, and just saw someone post about here in a link.  I ran to check it out because RR is pretty inactive and has gotten spammed a lot lately...

Anyway, I'm a 23 old futures broker trading for clients.  I use a lot of the same prospecting as people in advisory/planning roles, as well as those who trade in equities for clients.



Replies:
Posted By: RIArules
Date Posted: Dec/23/2010 at 3:06pm
What firm are you with?  I don't think we have any managed futures input here, so feel welcome to fill in that blank.  I am somewhat familiar with that side of the biz, used to work closely with FC Stone for a client in another life.

-------------
“We are all Antifa” - Hacksaw 9/12/2025


Posted By: Guests
Date Posted: Dec/23/2010 at 3:34pm
Welcome! How'd you get your start?


Posted By: combroker
Date Posted: Dec/23/2010 at 3:59pm
Originally posted by under_complicated under_complicated wrote:

Welcome! How'd you get your start?
I studied options and derivatives pricing intensively in college, fell in love with it, and upon graduation looked around for futures brokerages in Chicago.
 
Found a guy who had a small boutique brokerage who used the same strategy in his managed futures program, and we hit it off.
 
If you know 'Gaddock' from around these parts, I use essentially the same type of strategy he uses, except I know he has developed software for it, I find my trades manually right now(hopefully I can get something programmed in the future!)..and of course, my trades are in commodities instead of equities.
 
 


Posted By: combroker
Date Posted: Dec/23/2010 at 4:05pm
Originally posted by RIArules RIArules wrote:

What firm are you with?  I don't think we have any managed futures input here, so feel welcome to fill in that blank.  I am somewhat familiar with that side of the biz, used to work closely with FC Stone for a client in another life.
 
Im at a small Indy in Chicago, small enough where its a single branch company and I would rather keep that confidential.
 
We run a single managed futures program...$50,000 minimum investment, using a very effective options strategy.  It was started in Feb of 2009, has returned +47% since then, and +11% YTD...I would estimate that on Jan 1st we will be at +57% since Inception and +21% for 2010.
 
Managed futures fund-raising is a big draw to futures brokers...our program offers $5 a trade executed in the program(this can add up...trust me), and a 5% profit incentive.
 
 


Posted By: Wet_Blanket
Date Posted: Dec/23/2010 at 4:41pm
Glad to have you here, but to playDevil's advocate, what benefit is your program compared to a Boglehead portfolio (think cheap index funds)


Posted By: combroker
Date Posted: Dec/24/2010 at 1:10pm
Originally posted by Wet_Blanket Wet_Blanket wrote:

Glad to have you here, but to playDevil's advocate, what benefit is your program compared to a Boglehead portfolio (think cheap index funds)
Our big niche is diversification.  Commodities(in general) are uncorrelated to equities.
 
When I trade options for clients, I am sure to use a wide array of markets to further diversify and lower standard deviation.  For example, I might have a position in gold, crude oil, natural gas, corn coffee, the british pound, wheat, and 30 year treasuries all at once. 
 
I am also able to take short positions just as easy as long positions..and in other cases I can strangle the market and take both sides.
 
Although I am not too familiar with index funds, I am assuming these pertain only to equities...which would obviously correlate with each other.
 
Although people are more familiar with working in traditional investments i.e. equities, bonds, etc., I can generate a lot of interest by asking: "are you prepared for a year like 2008 in your future?"
 
Think of the 'Flash Crash' last May '10...I think the S&P 500 was down like 8-9%, and even though we had positions in index futures, those losses were offset with our other markets that were not correlated, and we were in the green that month.  Its all about lowering standard deviation of a portfolio.
 
Upside to being in futures: you get a lot of interest because of the diversification, and interest because people are unfamiliar...educating them gives a lot of closing opportunities.
 
Downside to being in futures: You work with less money than in equities.  I usually recommend anywhere from 10-20% of a portfolio being diversified into commodities.
 


Posted By: Wet_Blanket
Date Posted: Dec/24/2010 at 1:30pm
Do you see an opportunity with shorting Gold and going long Silver?


Posted By: Ron 14
Date Posted: Dec/24/2010 at 1:33pm
Welcome Com! I'm a former Options Trader from the CBOE. I assume you are off the floor like most these days?


Posted By: Guests
Date Posted: Dec/24/2010 at 1:44pm
Originally posted by Wet_Blanket Wet_Blanket wrote:

Do you see an opportunity with shorting Gold and going long Silver?
 
LOL


Posted By: combroker
Date Posted: Dec/24/2010 at 2:20pm
Originally posted by Wet_Blanket Wet_Blanket wrote:

Do you see an opportunity with shorting Gold and going long Silver?
Haha...well, I actually prefer gold to silver...silver is awfully volatile.
 
I find my opportunities by picking a spot in the market where the market wont go...much easier than trying to predict the future...


Posted By: combroker
Date Posted: Dec/24/2010 at 2:23pm
Originally posted by Ron 14 Ron 14 wrote:

Welcome Com! I'm a former Options Trader from the CBOE. I assume you are off the floor like most these days?
Yep..in an office in front of a computer.
 
I actually know pipefitters who are working at CBOE...they are installing cooling units on the old floors where trading activity used to be in order to cool the computer systems being used now...or something like that


Posted By: Ron 14
Date Posted: Dec/24/2010 at 2:25pm
Wouldn't surprise me. From what I hear it is the SPX pit and computers. Even in 2005 when I left most of the individual equity pits had dried up. I think only IBM had humans in it!


Posted By: combroker
Date Posted: Dec/24/2010 at 3:46pm
aint that the truth haha


Posted By: newregrep
Date Posted: Dec/28/2010 at 12:51pm
Hey come welcome!  I'm looking forward to Jan.


Posted By: RIArules
Date Posted: Dec/28/2010 at 2:36pm
Originally posted by combroker combroker wrote:

Originally posted by Wet_Blanket Wet_Blanket wrote:

Glad to have you here, but to playDevil's advocate, what benefit is your program compared to a Boglehead portfolio (think cheap index funds)
Our big niche is diversification.  Commodities(in general) are uncorrelated to equities.
 
When I trade options for clients, I am sure to use a wide array of markets to further diversify and lower standard deviation.  For example, I might have a position in gold, crude oil, natural gas, corn coffee, the british pound, wheat, and 30 year treasuries all at once. 
 
I am also able to take short positions just as easy as long positions..and in other cases I can strangle the market and take both sides.
 
Although I am not too familiar with index funds, I am assuming these pertain only to equities...which would obviously correlate with each other.
 
Although people are more familiar with working in traditional investments i.e. equities, bonds, etc., I can generate a lot of interest by asking: "are you prepared for a year like 2008 in your future?"
 
Think of the 'Flash Crash' last May '10...I think the S&P 500 was down like 8-9%, and even though we had positions in index futures, those losses were offset with our other markets that were not correlated, and we were in the green that month.  Its all about lowering standard deviation of a portfolio.
 
Upside to being in futures: you get a lot of interest because of the diversification, and interest because people are unfamiliar...educating them gives a lot of closing opportunities.
 
Downside to being in futures: You work with less money than in equities.  I usually recommend anywhere from 10-20% of a portfolio being diversified into commodities.
 
I have a little trouble wrapping my head around those two highlighted statements.

-------------
“We are all Antifa” - Hacksaw 9/12/2025


Posted By: combroker
Date Posted: Dec/28/2010 at 7:34pm
Originally posted by RIArules RIArules wrote:

Originally posted by combroker combroker wrote:

Originally posted by Wet_Blanket Wet_Blanket wrote:

Glad to have you here, but to playDevil's advocate, what benefit is your program compared to a Boglehead portfolio (think cheap index funds)
Our big niche is diversification.  Commodities(in general) are uncorrelated to equities.
 
When I trade options for clients, I am sure to use a wide array of markets to further diversify and lower standard deviation.  For example, I might have a position in gold, crude oil, natural gas, corn coffee, the british pound, wheat, and 30 year treasuries all at once. 
 
I am also able to take short positions just as easy as long positions..and in other cases I can strangle the market and take both sides.
 
Although I am not too familiar with index funds, I am assuming these pertain only to equities...which would obviously correlate with each other.
 
Although people are more familiar with working in traditional investments i.e. equities, bonds, etc., I can generate a lot of interest by asking: "are you prepared for a year like 2008 in your future?"
 
Think of the 'Flash Crash' last May '10...I think the S&P 500 was down like 8-9%, and even though we had positions in index futures, those losses were offset with our other markets that were not correlated, and we were in the green that month.  Its all about lowering standard deviation of a portfolio.
 
Upside to being in futures: you get a lot of interest because of the diversification, and interest because people are unfamiliar...educating them gives a lot of closing opportunities.
 
Downside to being in futures: You work with less money than in equities.  I usually recommend anywhere from 10-20% of a portfolio being diversified into commodities.
 
I have a little trouble wrapping my head around those two highlighted statements.
 
by index funds i meant programs focused primarily on equities, like a mutual fund.
 
we trade index futures in our managed futures program, like SP futures, Dow futures...along with currency/interest rate futures and all US commodities (grains, metals, softs, energy, etc).
 


Posted By: WTFChuck
Date Posted: Dec/28/2010 at 8:00pm
new to the site....how do i access the different forum topics?  I am blocked from entering.


Posted By: Wet_Blanket
Date Posted: Dec/28/2010 at 8:41pm
10 posts WTFchuck will get you in there.



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