Insignia Futures & Options insignia.altavra.com

The Markets

Insignia Futures & Options trading program, EPOCH3, currently involves trading contracts in the currencies, equities indices, foods, financials and grains but all domestic futures are monitored and/or possibly traded as opportunities present themselves. Additionally, Insignia Futures & Options may engage in the purchase of options, the selling (writing) of options or a combination of both resulting in spread strategies in the aforementioned markets. These strategies may be implemented in the control of risk or with the intention of optimizing capital exposure in the markets. At this time, only those contracts listed on U.S. exchanges will be traded.

No commodity futures contracts or options on commodity futures contracts traded on foreign exchanges will be implemented within this trading program.

The Program

EPOCH3 was designed by Insignia Futures & Options to use a proprietary technically driven program to generate buy and sell signals and refines those signals by applying fundamental/seasonal price tendencies of the markets in question. When the technically driven signal is confirmed by a seasonal tendency, Insignia Futures & Options further looks at fundamental data of the market, including volatility and liquidity, to determine whether or not to accept the trade. The signals are initially generated by a technical and statistical approach, but are refined by Insignia Futures & Options to achieve optimal entry and exit to and from the markets.

Market Entry

When a signal is generated within EPOCH3, primarily all futures and option orders, long or short, will be entered at a specific price utilizing limit orders. At times and discretion, Insignia Futures & Options may enter or exit a position with a market order based on current market conditions if it is beneficial to the program and client.

Trade/Risk Management

Once a futures or futures options position is established, a protective stop-loss order may be placed depending on the type of position entered. The initial stop is intended to protect account assets. As the trade progresses, Insignia Futures & Options, at his discretion, may adjust the stop-loss order to lessen losses and/or to increase profits. For options positions, Stop-loss orders are typically only used on short option positions due to their unlimited risk. Because of their limited risk characteristics, long options positions and spread/hedge positions are typically left un-stopped.

As each trade position progresses, Insignia Futures & Options will attempt to achieve profits by exiting market positions based upon predetermined price levels and/or time frames. When a position contains multiple contracts, Insignia Futures & Options may liquidate part of the position to adjust market exposure to lessen losses and/or realize profits. All positions will be monitored by Insignia Futures & Options to best determine market exposure at any given time.

Account Size

The minimum investment of the EPOCH3 program is $20,000.00 and may be increased in multiples of $1,000.00 thereof. EPOCH3 typically generates buy and/or sell signals for one to four contract positions (based upon market conditions, current open positions and margins requirements) per market and/or options based upon an account size of $20,000.00. As the account grows, multiple positions will be traded. For example: an account with a balance of $20,000.00 would trade one to four contracts on any given trade signal, an account with a balance of $30,000.00 to $40,000.00 would trade three to seven contracts on the same trade signal. Upon initiation of each new trade, Insignia Futures & Options will determine the appropriate number of contracts based upon account size as well as profit and risk factors. Due to the high degree of leverage, as the number of contracts traded increases, the amount of risk will also increase. Insignia Futures & Options, at his discretion, shall reserve the right to reduce client risk exposure by limiting the number of contracts traded on any given position on either a composite or an account-by-account basis. In order to properly trade the number of contracts required by the program and to reduce the likelihood of margin calls, it is strongly recommended that the account balance be maintained above $15,000.00.

The Markets

Insignia Futures & Options trading program, MEDALLION, currently involves trading contracts in the currencies, equities indices, foods, financials and grains but all domestic futures are monitored and/or possibly traded as opportunities present themselves. Additionally, Insignia Futures & Options may engage in the purchase of options, the selling (writing) of options or a combination of both resulting in spread strategies in the aforementioned markets. These strategies may be implemented in the control of risk or with the intention of optimizing capital exposure in the markets. At this time, only those contracts listed on U.S. exchanges will be traded.

No commodity futures contracts or options on commodity futures contracts traded on foreign exchanges will be implemented within this trading program.

The Program

The MEDALLION program is designed to take a more aggressive approach to the markets as compared to the EPOCH3 program. This program will typically generate more trade signals as compared to the EPOCH3 program. Markets are indentified through Insignia Futures & Options proprietary technical and fundamental analysis and research. Once a market presents a trade opportunity as outlined in the EPOCH3 program information above. A more aggressive approach will be used to take advantage of the trade opportunity.

Market Entry

When a signal is generated within MEDALLION, primarily all futures and option orders, long or short, will be entered at a specific price utilizing limit orders. At times and discretion, Insignia Futures & Options may enter or exit a position with a market order based on current market conditions if it is beneficial to the program and client.

Trade/Risk Management

Once a futures or futures options position is established, a protective stop-loss order may be placed depending on the type of position entered. The initial stop is intended to protect account assets. As the trade progresses, Insignia Futures & Options, at his discretion, may adjust the stop-loss order to lessen losses and/or to increase profits. For options positions, stop-loss orders are typically only used on short option positions due to their unlimited risk. Because of their limited risk characteristics, long options positions and spread/hedge positions are typically left un-stopped.

As each trade position progresses, Insignia Futures & Options will attempt to achieve profits by exiting market positions based upon predetermined price levels and/or time frames. When a position contains multiple contracts, Insignia Futures & Options may liquidate part of the position to adjust market exposure to lessen losses and/or realize profits. All positions will be monitored by Insignia Futures & Options to best determine market exposure at any given time.

Account Size

The minimum investment of the MEDALLION program is $50,000.00 and may be increased in multiples of $1,000.00 thereof. The program typically generates buy and/or sell signals for 5 to 10 contract positions (based upon market conditions, current open positions and margins requirements) per market and/or options based upon an account size of $50,000.00. As the account grows, multiple positions will be traded. For example: an account with a balance of $50,000.00 would trade 5 - 10 contracts on any given trade signal, an account with a balance of $75,000.00 to $100,000.00 would trade 10- 20 contracts on the same trade signal. Upon initiation of each new trade, Insignia Futures & Options will determine the appropriate number of contracts based upon account size as well as profit and risk factors. Insignia Futures & Options, at his discretion, shall reserve the right to reduce client risk exposure by limiting the number of contracts traded on any given position on either a composite or an account-by-account basis. In order to properly trade the number of contracts required by the program and to reduce the likelihood of margin calls, it is strongly recommended that the account balance be maintained above $30,000.00.

Joseph Fallico began investing in equities and mutual funds while attending Wm. R. Harper College in Palatine, IL. In June of 1985, Mr. Fallico founded and successfully ran LRF Corp., a financial services company specializing in vehicle and equipment financing until June of 1995. From June 1995 through July 2001, Joseph Fallico was employed as an account manager for The Atlas Companies; a Chicago based business-to-business logistics services company. In September of 1991, Joseph Fallico added commodity futures investing to his already successful portfolio of equities and mutual funds. In July of 1999, Joseph Fallico began to concentrate all of his investing skills into the commodity futures markets and in July of 2001, received his series 3 commodity futures broker license and founded Insignia Futures & Options. Joseph Fallico has been a registered Associated Person from August 8, 2005 through the present. Since then, Joseph Fallico has developed several trading strategies for both commodity futures and options on commodity futures. Insignia Futures & Options was initially founded as a sole proprietorship on July 31, 2001 in Palatine, IL and was registered with the National Futures Association until September 8, 2005 at which time the business was restructured as a corporation. Insignia Futures & Options, Inc. registered with the National Futures Association on August 8, 2005 and is currently a member.

The descriptions above are from the manager’s disclosure document.

THE RISK OF LOSS IN TRADING FUTURES, OPTIONS AND OFF-EXCHANGE FOREX CAN BE SUBSTANTIAL.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.  PLEASE READ THE CTA'S RISK DISCLOSURE DOCUMENT CAREFULLY BEFORE INVESTING MONEY.