CTA fee Structure – What Are the Choices?

CTA fee Structure – What Are the Choices?

It is well known that there is increasing pressure on CTA fees. We see this in the proliferation of smart beta products offered with relatively low fees. Institutions don’t want to pay for beta. Putting aside what beta means in the CTA world, let’s look at the options for CTA fee structure and how to negotiate.

Monte Carlo Convergence Issues

Monte Carlo Convergence Issues

Exploring Monte Carlo convergence issues allows us to make the trade-off between estimation error and computing resources. This can have a big impact on trading system development times.