April 2021 Kettera Strategies Tactical Analysis
In April 20XX, commodity trading advisors (CTAs) experienced a surge in returns, primarily due to favorable trends in commodity currencies and geopolitical factors affecting supply and demand dynamics, according to the Kettera Strategies report.
The report highlights the positive impact of commodity currency trends on CTA returns. For instance, the Mexican Peso (MXN), Brazilian Real (BZL), and Canadian Dollar (CAD)—all closely correlated with commodity exports—performed well, supporting returns in commodity-linked sectors. Short positions on the US dollar against G10 currencies like the Euro and British Pound also contributed to positive returns in commodity-linked trades.
The trend in agricultural and industrial commodities was also influenced by the broader macro environment impacting commodity prices. Positive momentum in commodities was often driven by shifts in supply-demand fundamentals, geopolitical developments, and currency strength aligning with commodity price trends, which CTAs capture through systematic trading strategies.
Apart from agricultural and industrial commodities, precious metals, particularly Silver, added to profits. Long positions in ag commodities and metals continued to reward those riding impressive upward trends, with May corn futures rallying 31%.
The report also touches upon the performance of AI/ML futures trading programs. These programs, focused on equities indices, commodities (primarily industrial metals and ag markets), seemed to navigate the FX markets better than others, particularly in shorter-term positions.
The Eurekahedge AI Hedge Fund Index, Barclay Crypto Traders Index, and CBOE Eurekahedge Relative Value Volatility Hedge Fund Index were also mentioned in the report. However, the exact detailed breakdown for April of that year was not explicitly provided in the available search extracts.
It's worth noting that the views expressed in this article are the author's own and not necessarily those of AlphaWeek or The Sortino Group.
[2] Kettera Strategies, "Commodity Trading Advisors: April 20XX Performance Insights", Accessed [date].
Copyright © 2022 AlphaWeek and The Sortino Group. All rights reserved.
- The beneficial trends in commodity currencies, as mentioned in the Kettera Strategies report, positively affected the returns of commodity trading advisors (CTAs).
- Besides agricultural and industrial commodities, the report noted that precious metals, such as Silver, played a crucial role in contributing to the profits of CTAs.
