Systematic momentum programs that scale into strength, hold through the noise, and step aside when the signal fades — with the discipline a discretionary trader can’t replicate at the screen.
Momentum is one of the most extensively studied phenomena in finance. The persistence of return continuation — that assets which have outperformed recently tend to keep outperforming over short-to-medium horizons — has been documented across equities, futures, currencies, and bonds going back more than a century. The academic literature is unusually clear: momentum is real, it’s persistent, and it pays.
What’s hard is capturing it consistently. Discretionary momentum traders typically struggle with two things: the discipline to add to winners (it feels wrong) and the discipline to exit cleanly when momentum fades (it feels premature). Systematic programs solve both problems by removing the human from the loop.
What we mean by momentum trading
The momentum programs we work with run on signals that capture persistence in price action — not just direction. A market that has rallied 20% in three months on increasing volume and broadening participation is, in the technical sense, more “momentum-positive” than a market that has rallied the same amount on declining volume in a single name. Momentum programs distinguish between these and size positions accordingly.
Holding periods are typically weeks to a few months — longer than short-term systematic, shorter than classical trend following. Position sizing is dynamic: programs scale into positions as the momentum signal strengthens and reduce exposure as it weakens, rather than treating every entry the same way.
Markets traded span equity index futures, commodities, currencies, and rates. Some momentum programs also run on single-name equities through ETFs or futures proxies. The defining feature is the use of momentum signals rather than trend-continuation signals — a subtle but consequential distinction.
How we implement
Three execution principles separate momentum programs that compound from those that don’t:
Signal robustness over signal complexity. The momentum programs we run use simple, robust signals (often just price persistence across multiple lookback windows) rather than over-engineered combinations of indicators that worked in one backtest. Simpler signals tend to survive market regime changes; over-fit ones tend not to.
Dynamic position sizing. A program that takes the same position size regardless of momentum strength is leaving money on the table. The systems we deploy scale exposure with signal conviction, increasing position size in markets with strong, broad momentum and reducing it in markets where the signal is borderline. This is where momentum-style sizing differs meaningfully from trend-following sizing.
Exit discipline. The moment a momentum signal fades, the system exits. There’s no “let’s give it another week.” This is the hardest behavior to replicate manually and the biggest reason momentum is run systematically.
Programs run on monitored infrastructure with redundant connectivity through our FCMs (R.J. O’Brien, StoneX Financial, Phillip Capital). Accounts are separately managed in the client’s name; the CTA has trading authority but cannot withdraw funds.
Who this is for
Momentum is most appropriate for allocators who:
Want managed futures exposure with a different return profile than classical trend following — typically shorter drawdowns, more frequent rebalancing, and a different distribution of winning trades.
Are comfortable with the fact that momentum programs generally lose money during sharp reversals (the same persistence that captures up moves also extends positions into the start of declines) — and have an allocation size where those reversals are bearable.
Want exposure to both classic momentum (riding strength) and short-momentum (cutting weakness) without trying to time the regime themselves.
Value uncorrelated diversification within a multi-strategy managed futures allocation rather than concentrating in one style.
Account minimums and structure
Most momentum programs we provide access to accept SMAs starting at $100,000 to $500,000 depending on the program. Programs with more concentrated single-market exposure typically have higher minimums; broader multi-market programs accept smaller accounts.
Accounts are opened in the client’s name at one of our cleared FCMs. The trading authority is granted to the CTA. Cash and positions remain in your name throughout, and statements come directly from the FCM.
Request the program brief
If you’d like the disclosure documents, historical performance, and program-specific details for the momentum programs we provide access to, request the program brief below. A principal will respond, typically within one business day.
Frequently asked questions
How is momentum different from trend following?
Trend following typically uses simple breakout or moving-average rules with binary on/off exposure and equal-risk position sizing across markets. Trend systems are looking for the existence of a trend. Momentum programs typically use persistence signals with dynamic position sizing scaled to signal strength. Momentum systems are looking for the strength of the move. In practice, the two are correlated but not identical — combining them in a portfolio usually adds value.
What does the drawdown profile look like?
Momentum programs typically experience drawdowns in the 10–20% range as a normal feature, with occasional larger drawdowns during sharp market reversals when momentum positions extend into the wrong direction. Specific drawdown history is in each program’s disclosure document.
Are these equity-momentum programs or futures-based?
Both, depending on the CTA. Some momentum programs we work with are pure futures (commodities, rates, currencies, equity indices). Others run primarily on equities through single-name or ETF exposure. We match the program to the client’s preferred exposure profile during the initial conversation.
Why systematic rather than discretionary?
The behavioral discipline required to run momentum well — adding to winners, exiting cleanly when signals fade, sizing dynamically — is something most discretionary traders cannot do consistently for the same reasons they can’t follow any system consistently. The academic and practitioner literature is overwhelming that systematic momentum has historically outperformed discretionary momentum, with significantly lower behavioral failure modes.
Can I combine momentum with other managed futures strategies?
Yes, and we recommend it for clients with meaningful allocations. A typical multi-style construction might combine trend following (for crisis alpha and long-horizon directional exposure), momentum (for medium-horizon persistence capture), and short-term systematic (for uncorrelated diversification). The three styles together typically deliver a higher portfolio Sharpe ratio than any one in isolation.
Past performance is not necessarily indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Momentum trading programs are speculative and may involve a high degree of risk. The information on this page is for general educational purposes and does not constitute investment advice or an offer to sell or solicitation of an offer to buy any specific managed futures program. Specific program details, including disclosure documents, are provided directly to qualified prospects under standard NFA-compliant procedures.