The risk of loss in trading commodities can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets.

The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor ("CTA"). The regulations of the commodity futures trading commission ("CFTC") require that prospective clients of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks and other significant aspects of the commodity markets. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition.

You are encouraged to access the disclosure document by clicking below. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document, which also will be provided to you at no cost. The CFTC has not passed upon the merits of participating in this trading program nor on the adequacy or accuracy of the disclosure document.

We are required to provide other disclosure statements to you before a commodity account may be opened for you. Please acknowledge your understanding of the above statement by clicking the button below. You may then continue to view the site.

Strategy

Our discretionary strategies involve investing in the volatility of the S&P 500 Index, through the use of hedged portfolios of S&P 500 Index Futures Options, both long and short…..

Our investment process establishes mean reversion parameters, applying fundamental macro economic analysis, technical and market analysis, to assist in the initiation of portfolio positions, as well as intra-month adjustments and general opinion on market direction.  Our general aim is to profit from options that expire worthless, potentially allowing us to keep the option premium from writing (selling) the options, regardless of the equity market direction.  The founders of ITB Capital Advisors, LLC have been trading together for over 20 years, establishing and refining the strategies employed by the firm today. Our goal is to provide consistent returns to our investors, over complete market cycles, which are non-correlated to general market indices.

ITB Philosophy

The management of ITB believes managed futures programs, specifically volatility strategies, have the potential to provide true diversification to investor portfolios, through providing consistent returns, while maintaining low correlation to most market indices.

Strategy Description - Methodology

  • Discretionary Options Volatility Trading (Mean Reversion/Range Trading)

  • No Reliance on Computer Generated Trades

  • Portfolios Consisting of Short & Long S&P 500 Futures Options

  • Short Term Focus Utilizing Options Generally With Expirations of 30 Days or Less

  • Generally Most Option Positions Have Associated Hedges

Investment Process

  • Strict Proven Program Disciplines Established Over Complete Market Cycles

  • Fundamental Global Macro Analysis

  • Technical Analysis

  • Price – Volume – VIX – Associated Greeks

  • Intra-Month Adjustments Based on Variations of Implied vs Realized Volatility

Risk Management

  • Systematic Framework

  • Sensitivity to Downside Market Movements

  • “What If” Trade Analysis

  • Real Time Portfolio Scenario Analysis

  • Real Time Stress Analysis on Individual Positions as Well as Overall Portfolio



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