Is a managed futures account appropriate as a short-term, or a long term investment?
Usually, an investor views a managed futures account as a longer term investment, because futures investing is speculative, and most markets tend to be cyclical. Therefore, even the most successful professional traders can experience periods of flat returns, or even drawdowns. Consequently, losses can be incurred for those trading periods, and if an investor remains with the trading program for a longer term, the investor can allow the account the opportunity to recover from such cyclical losses. Ultimately, the investor will have to determine the length of time that he will keep his investment with a particular CTA.
