Arete Capital Management, LLC

Futures Program

Basically, our trading approach is a morph of fundamental analysis blended with a series of proprietary technical tools. Our discipline derives from the interrogation of economic data and what our interpretation on directional bias that this data might have on the various markets that we trade. We also aggressively analyze, interrogate and interpret the effects of external market influences that may be the motivating factor pushing the price of the market we seek to trade. For instance, if we are trading stock index futures we are monitoring the effect(s) of the bonds, energies, currency and other markets that may affect the stock indices either positively or negatively. It might be worth mentioning that our analysis may take the inverse opinion from one day to the next given the same set of external influence(s). Within the context of trading stock index futures, which is our primary market, we are also continuously analyzing the subcomponents and/or sectors that comprise each major index. We feel the benefit of this approach is twofold; first it is extremely important in our opinion to intimately know the market you are trading and how it is composed to be aware of what is influencing direction; and second, if an index is moving with very narrow participation and perhaps sector cross currents, then the probability for any impulse move to be sustained is lowered in our estimation. Additionally, in conjunction with our top down fundamental analysis and pre-determined ideas on how we may anticipate price movement relative to economic releases and other data, we have a series of proprietary mathematical models that we extensively utilize as tools for determining price entry, exit and risk. Our technical analysis tends to measure price momentum, market inertia and the probability of wave patterns.