Mehnert Capital Management's DIVERSIFIED TRADING PROGRAM (DTP) is a trading program that takes positions across a diversified portfolio of domestic futures markets with a primary focus on, but not limited to, currencies, agriculturals, equity indices, interest rates, metals, energies, softs and meats. There is no directional bias in this program. The program may be net long, short or flat any particular market or sector at any time.
The different trading approaches that make up the trading program attempt to generate trading profits in (i) trending, (ii) non-trending, and (iii) reversal phases of any major market trend. All trades taken are actively managed, with the view of locking in as much of the prevailing market move as possible, while at the same time allowing each trade sufficient room to move in order to meet its return objectives.
This trading program and strategy operate on two levels. The first part of the strategy involves the use of two trading systems operated simultaneously; each system used has been profitable if run in isolation, but the combination of different models and strategies should produce better returns than any of the trading models alone. The use of multiple systems also decreases the reliance on any one market or trading strategy to produce consistent trading profits.
The second part of the trading strategy involves strict risk management procedures that are used in order to achieve trading returns with the least possible risk. The Advisor believes that the leverage offered by futures contracts can work for and against an Advisor, and the understanding of risk is essential in trading mechanical systems over a wide range of futures markets. Risk is analyzed on a market basis and used to regularly balance the portfolio of contracts being traded at any given time.
Returns are based on proforma adjustments to a proprietary account to reflect fees. Client accounts will be traded in like fashion.