Leverage
Futures contracts normally require only a margin relative to the contract’s full market value. Small price movements can therefore produce large gains or losses relative to capital.
Important information
Risk and
responsibility.
Managed Futures and futures trading may involve substantial risk. Read this before considering a direct investment in the Arkad CTA programme.
Overall risk
Capital may decline substantially in value.
Arkad trades global futures markets. The programme may take both long and short positions and can therefore lose money in rising as well as falling markets. Invested capital may increase or decrease in value, and you may not recover the full amount invested.
An investor must be able to bear both financial losses and periods of substantial decline from a previous peak, known as a drawdown.
Key risk factors
Rules-based trading does not eliminate risk.
Trend reversals and false signals
Trend-following models may incur many small losses when markets lack persistent trends or change direction rapidly.
Liquidity and gaps
During stress, trading halts or sharp price gaps, a position cannot always be closed at the intended level. A stop loss does not guarantee that a loss will be limited.
Concentration and correlation
Markets that normally move differently may suddenly become highly correlated. Several positions may then lose at the same time despite broad market diversification.
Model risk
Historical relationships may change. A model may contain errors, react unexpectedly or perform less effectively in future market environments.
Operational risk
Technical failures, data errors, cyber incidents, outages at brokers or exchanges and human errors may affect trading and results.
Counterparty and custody risk
Capital and positions depend on brokers, clearing organisations, banks and other counterparties. Problems at such an entity may cause loss or delay.
Currency and foreign-market risk
Performance in USD may be affected by exchange-rate movements for an investor whose base currency is SEK or EUR. Markets outside the United States may be subject to different rules and protections.
Fees
Management fees, performance fees, commissions, spreads, financing and other costs reduce the investor’s net result.
CFTC and NFA
Regulation does not replace the investor’s own assessment.
Henrik Hallenborg conducts direct management through Hallenborg CTA within the US regulatory framework for Commodity Trading Advisors. The CTA business is registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).
Registration and membership entail requirements concerning documentation, reporting, conduct and customer disclosure. They do not mean that the CFTC or NFA has approved the strategy, determined it suitable for a particular investor or guaranteed future results.
The NFA states that a prospective CTA customer should normally receive a current Disclosure Document before granting trading authority or entering into an advisory agreement, unless an applicable exemption applies. That document contains more complete information about the business, fees, conflicts of interest, risks and performance.
Performanceinformation
No performance history is shown on the website.
Clear presentation
The website currently shows no historical or hypothetical performance for Arkad. If performance information is published, it must clearly state the business and period to which it relates, whether the results are actual or hypothetical and which fees and costs have been taken into account.
No guarantee
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Past results are not necessarily indicative of future results. Future drawdowns may be both deeper and longer than previous ones.
Documentation before a decision
This page is a summary.
The information does not constitute an offer, individual investment advice or the formal Disclosure Document that may be required under CFTC and NFA rules. Before a direct investment, the investor should read the applicable Disclosure Document, agreements and account documents.
Legal, tax and financial circumstances are individual. Seek independent professional advice when needed.
Contact Hallenborg CTA