Futures trading involves buying and selling contracts that obligate the buyer to purchase or the seller to sell a specific asset at a predetermined price on a specific date. Advanced futures trading strategies involve using a range of techniques, including technical analysis, fundamental analysis, and quantitative models, to identify profitable trades and manage risk.
Further study & complementary reads
[ Capital Allocation ] │ ┌──────────────────┼──────────────────┐ ▼ ▼ ▼ [ Fast System ] [ Medium System ] [ Slow System ] (e.g., 8/32 EWMAC) (e.g., 16/64 EWMAC) (e.g., 64/256 EWMAC) │ │ │ └──────────────────┼──────────────────┘ ▼ [ Combined Forecast Score ] │ ▼ [ Volatility-Adjusted Position ] Exponentially Weighted Moving Average Crossover (EWMAC) advanced futures trading strategies robert carver pdf
: The system constantly re-evaluates the optimal set of instruments to trade based on capital constraints and diversification benefits. The 30 Strategies Framework
Apply a diversification multiplier to boost overall portfolio leverage safely, accounting for the reality that not all sectors move together. 5. Execution, Costs, and Systematic Realities Futures trading involves buying and selling contracts that
: Instead of binary "buy/sell" signals, Carver uses a scaled forecast (e.g., -20 to +20) to gradually adjust position sizes based on trend strength. Risk-Based Sizing
Your (as Carver's volatility targeting scales differently for small vs. large capital bases) Continuous Position Sizing
Divide the difference by the asset’s current daily volatility (standard deviation of returns).
The most critical aspect of Carver's methodology is that position sizing is driven entirely by market volatility, not by account size alone. Continuous Position Sizing