We believe that every successful systematic trading program relies on a strong theory and strict risk control. Our trading strategy, Ocean TTP, stands as a testament to that.
Ocean TTP is the result of over 20 years of experience in commodity trading, intensive studies, and continuous system refinement. "Take The Points" is our methodology to consistently gain returns by using market information inequalities to our advantage. Learn more about Ocean TTP in the following sections.
Since 2005, our enduring success is a result of our dedication to both strict risk control and wide market diversification. Central to the Ocean TTP trading system are six essential risk controls, reinforcing our commitment to a resilient and effective strategy.
Ocean TTP strategically engages in 15 low-correlating commodity markets, ranging from beans over grains to industrial metals. This broad diversification aims to optimise risk management and take advantage on market opportunities across different sectors through both long and short positions.
The trading strategy Ocean TTP is the result of over 20 years of experience in commodity trading, intensive studies, and continuous system refinement. Among various systematically developed models, two have emerged as particularly profitable, laying the foundation of Ocean TTP: System Dolphin and System Marlin. What's unique about this is that when these systems are combined, they generate even better results with increased returns and reduced risk exposure.
Fundamentally, both systems are built on the understanding that different market players in commodity trading possess varying levels of information about production, storage, and delivery of commodities. This information imbalance affects price movements. Commercials have more information compared to individual traders. The two subsystems, Dolphin and Marlin use different methods to benefit from information differences, extracting insights from technical data to make strategic market moves according to that.
Dolphin's formula employs specific indicators to determine whether to take a long or short position, leveraging a forward-looking analysis of future prices and spreads in 15 different markets. This approach enables Dolphin to assess long-term market trends and make strategic decisions accordingly.
In the dynamic landscape of commodity trading, front-month prices are driven by all market players, including the public, speculators, funds, and commercials. However, back-month prices are predominantly steered by commercials armed with the latest supply and demand information. Companies like Nestle and Shell hold unmatched knowledge in commodities such as Cocoa or Crude Oil. For this reason, certain markets display a strong correlation between outright prices and spreads: The foundation of the Marlin-System. Here, changes in spreads and their interactions with outright prices act as key indicators, guiding market movements.
The beauty of Ocean TTP emerges from the synergy of System Marlin and System Dolphin. Through the integration of their unique strengths, the strategy achieves a perfect equilibrium that minimizes risk and maximizes the potential for consistent returns.
The combination of the Dolphin and Marlin system results in a reduced combined volatility of 12.24%, as opposed to their individual higher volatilities of 16.12% and 12.86%. This decrease is possible by their low correlation of 0.43, meaning they don't move synchronously. The combination of both systems helps to smooth out market fluctuations, enhancing overall system stability and reducing risk.
OCEAN capital OCEAN capital
OCEAN capital OCEAN capital
Discover a range of investment classes designed for your financial goals. Our classes match various risk levels and different investor preferences. Find the right fit for your financial goals and begin your journey today.
Discover a range of investment classes designed for your financial goals. Our classes match various risk levels and different preferences. Find the right fit for your goals and begin your financial journey today.
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