Markets Traded
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Methodology Risk Management Markets Traded

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Basic Trading Program

FOG uses option selling (premium writing) as it's sole trading strategy.

We use a combination of fundamental and technical analysis to determine markets and timing.

Except in rare cases we do not buy or sell futures contracts or buy options.

Currently we trade in the grains, energies, meats, foods and softs, and the S&P 500. This in no way implies that these are the only markets we consider. We are always looking at the other sectors for profit opportunities.

In general terms, we employ a market neutral strategy. That is, we sell far out of the money options with two to four months until expiration. Many times we sell on both sides of a market (calls and puts). We usually take our profits at expiration but depending on conditions, we consider buying the options back when it becomes advantageous to do so.

Our system is not computerized in any way. The decisions are made in real time by the trading manager.

Currently we do not trade when excess equity falls below 35% of account value. This rule however, is in the process of review and will most likely be changed to 40%.

Risk is determined at the onset of each trade and handled accordingly, as needed.

The risk of loss in trading commodities can be substantial. Past performance is not indicative of future results. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of the principal risk factors and each fee to be charged to your account by the commodity trading advisor ("CTA").

The regulations of the Commodity Futures Trading Commission ("CFTC") require that prospective clients of a CTA receive a disclosure document when they are solicited to enter into an agreement whereby the CTA will direct or guide the client's commodity interest trading and that certain risk factors be highlighted. This document is readily accessible at this site. This brief statement cannot disclose all of the risks. Therefore, you should proceed directly to the disclosure document and study it carefully to determine whether such trading is appropriate for you in light of your financial condition. You are encouraged to access the disclosure document by clicking below. You will not incur any additional charges by accessing the disclosure document. You may also request delivery of a hard copy of the disclosure document, which also will be provided to you at no cost. The CFTC has not passed upon the merits of participating in this trading program nor on the adequacy or accuracy of the disclosure document. We are required to provide other disclosure statements to you before a commodity account may be opened for you.