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T.N.T. CT 500 Trading System

  • CTA Name : T.N.T. Investments, Inc.
  • Program Name : T.N.T. CT 500 Trading System
  • Start Date : 2002-04-01
  • Trading Strategy
  • Systematic : 90%
  • Discretionary : 10%
  • Fundamental : -
  • Technical : Yes
  • Diversified Market Strategy : -
  • Sector Specific Strategy : Yes
  • Trade Duration
  • Long-Term : -
  • Mid-Term : -
  • Short-Term : -
  • Multi-Term : -
  • Markets Traded
  • Stock Index : Yes
  • Interest Rates : -
  • Currencies : -
  • Metals : -
  • Energy : -
  • Grains : -
  • Meats : -
  • Softs : -

T.N.T. Investments, Inc.

T.N.T. CT 500 Trading System


The T.N.T. CT 500 Trading System trades primarily in stock index futures contracts and options thereon, including the e-mini and the full Standard & Poor's 500 Stock Index. The primary trading strategy of CT 500 is to sell option strangles on stock index futures contracts. The system attempts to take advantage of the fact that the vast majority of out-of-the-money options expire worthless. When you sell a strangle you are selling puts and calls. The system sells options in specific time frames that have seen extreme degradation of option premium. The formula for selecting the strike prices to sell is a proprietary formula developed by the Advisor. During periods of extreme low or high volatility we look for obvious opportunities to sell extra premium. The system can hold the short option position until expiration. The position may be exited early if the degradation of premium is extreme early in the trade. For money management purposes the position may be replaced with an option further from the market and/or an option with a different expiration date if the market approaches the strike price. In August of 2002, the Advisor enhanced CT 500 with a proprietary day trading system for stock index futures contracts. This day trading system has been traded in separate accounts since 1998 and was implemented to dampen draw-downs in volatile markets similar to those of September 2001 and July 2002. When combined with the CT 500, the Advisor found that the equity curve was much smoother and the draw-downs were substantially less during these highly volatile months. In November of 2005 the Advisor also added a filter to decrease the number of countertrend trades the day trader was generating. This filter has decreased our commission expenses and filtered out most of the day trades occurring on a range bound day. CT 500 also includes the Advisorís TNT Position Trading System, adding a dimension in a trending market. The system is based on a combination of bullish percent indicators that give the Advisor opportunities to catch large moves in the S&P 500 futures contract market. The risk management system used by the Advisor to assess each option trade is based on a Defcon type system similar to what NORAD uses. These indicators are all independent of CT 500. The 7 indicators describe 7 progressive alert postures that could signal a major market decline. These indicators are used to help determine the strike prices the Advisor will sell or possibly the exit of open positions when risk factors are considered too great.

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