CTA achieves successful portfolio management is through a prudent process of security evaluation, timely execution and risk management. We believe that the keys to growing and maintaining wealth are in controlling risk, return and the costs associated with managing a portfolio.

CTA protocols are designed to meet three specific objectives:
• Meeting client needs and goals by assessing their level of risk tolerance
• Creating client wealth through profitable trading strategies and tactics
• Conserving client wealth via defensive trading strategies and tactics

Bill Cara takes the lead in our team approach to trading, integrating proprietary fundamental, technical and quantitative analysis into unified strategies for managing portfolios. CTA specialists with extensive experience in trading, technical analysis, quantitative analysis and technical support apply those strategies.

Incorporating quantitative and technical analysis with automated decision support systems, the CTA trading team prepares daily lists of stocks for trading in each Cara Portfolio. The lists are refined throughout the day as the markets change and the team executes trades. All accounts within in either Portfolio are traded simultaneously using trading instructions based on the summary of total account assets and calculations of dollars/shares to trade within that portfolio. One trade is used for multiple accounts with each client receiving the average of the buy or sell price. No client is favored over another.

We strive for deep understanding of the structure of capital markets, and of the nature of cause and effect in operation there. We look at how the broad markets, sectors and individual companies react to the external factors of:
• Interest rates and foreign exchange
• The economy, consumer spending and the commodity markets.
• For individual companies, we look at business model and management, focusing on “best of breed” companies in their respective industries.

We analyze risk exposure both before and after executing a trade. All portfolios are monitored to ensure the continuous application of prudent money management techniques.

These techniques have stood the test of time:
• Diversification and correlation
• Proper position sizing
• Careful entry and exit points
• Hedging for safety
• Options for additional returns
• CTA closely manages associated operating costs. Trading commissions are low because, unlike some money managers, we receive no portion of the broker's commissions. Client costs are further reduced because we trade in large quantities at a low institutional commission rate.

Step 1 | Fundamental Analysis
We review company fundamentals including but not limited to: price to earnings ratio, growth prospects, business model, management, and performance.

Step 2 | Technical Analysis
Technical Analysis evaluates a security by studying its price chart for momentum, trends and cycles, price action, moving averages, volume and more.

Step 3 | Execution of trade
Having determined to enter a position, we evaluate different strategies to minimize risk while allowing time for the position to be profitable.

Step 4 | Risk Management
Once a position is established, risk management becomes our focus as we carry the position toward meeting our price objectives.

Step 5 | Trading Journal
Traders maintain daily logs of all trades, detailing position sizes, the bases for the decisions to execute, and the specifics of how the position is hedged.

Step 6 | Technology for Trade Execution and Risk Management
We use all tools at our disposal to manage risk.