Portfolio Strategies

Normal returns are considered the same as market returns as measured by a benchmark such as the S & P 500, Russell 2000 or the NASDAQ 100.

FCI’s Strategies Have Given Above Normal Returns

Our portfolio strategies are:

We utilize derivative contracts that appear to have an 80% probability of attaining profitability.
We use alternative hedge strategies to manage risk and minimize losses.
FCI trading profits are based on continual net premium collections from the sale of options, hedged or un-hedged.

In our Option Selling Strategy (OSS), we sell options that are 1.5 to 2.0 standard deviations away from the price of the underlying asset at position opening time.
In our Credit Premium Program (CPP), we sell options that are 1.0 to 1.5 standard deviations away from the price of the underlying assets at position opening time. Hedges are applied to protect against adverse market movement.
Our discretionary system allows us to sell options in either of the managed futures programs that are anywhere from 5 days to 10 weeks away from expiration.
In addition, FCI uses its own proprietary alternative investment strategy for finding, measuring, monitoring, investing and creating profitable trading returns in relation to risks accepted and costs incurred returns on option selling.
FCI only trades in liquid commodity markets such as energy, metals, grains, financials, softs and indexes.
We target total invested capital requirements of approximately 40% to 60% of the total account balance, based on the managed futures program.

In our FX Premium Program (FXPP), we utilize derivative contracts by selling e-micro currency futures options that appear to have a 75% or better probability of expiring worthless. Trading profits are based on continual net premium collections from the sale of currency futures options, hedged or un-hedged.
In addition to being a net premium collection program, FXPP also uses trend following short-term momentum signals to profit from short-term momentum opportunities by going long or short an underlying currency futures contract. We may hedge mark-to-market losses on short option positions that we intend to hold by going long or short the underlying e-micro currency futures contract if the market structure is appropriate. (There is a substantial risk of loss involved in trading forex, futures, and options. The use of hedging strategies does not necessarily mitigate the substantial risk of loss in selling options.)

95% winning trades, as per our options strategies*
Follow active risk management practices with the goal of not having any one investment incur a drawdown of more than 3% to 7% in any one month**
Target consistent monthly positive returns of 2% to 5% (based on the above drawdown goal of 5% in any month)
No assurance can be made that the target % of winning trades can be achieved.

Our strategy is targeted to hit consistent singles every month, rather than swing for the home run!

* There is no guarantee that FCI will achieve this result
**Some exceptions apply based on investor’s portfolio