The EBULLIO FAR EAST COMMODITY FUND is mainly directional in nature and seeks to capture short term momentum in commodity markets through a combination of fundamental, technical and sentiment analysis. The methodology is 100% discretionary with the team capitalising on market volatility by applying directional (counter trend/trend following) and spread trading (relative value/calendar) strategies.
As a guide to strategy distribution, there is roughly a 70/30 split between directional and spread trades.
Of directional trades, 60% tend to be trend following and 40% mean reversion.
Intraday trading accounts for approx. 30%.
The programme applies a top down approach to analysis, the highest level formed from a broad macro fundamental and technical view to create sentiment and directional themes. These viewpoints are distilled down to the individual commodity and form a short-term view. The approach is dynamic, adjusting as necessary to the continuous information flow taking into consideration sentiment, volume and relevant technical levels.