Methodology

RL Capital’s methodology is based on applying time-tested principles to an advanced research process.  In our view, long-term investment success is predicated on cutting losses, riding winners, and following a rigorously tested and well-researched plan.  Our quantitative, price-based trading models are built on these principles providing, in our opinion, the largest opportunity to compound gains over long periods.

Traditionally, absolute return strategies add value in a diversified portfolio because they are non-correlated with traditional stock and fixed income investments.  By allocating a portion of one’s investments to an absolute return strategy, the entire portfolio gains the potential to experience reduced volatility and to generate attractive risk-adjusted performance.

Together with the portfolio benefits offered by alternative strategies, RL Capital has built its foundation on principles which we feel offers the best opportunity to maintain a long-term edge in producing superior risk-adjusted returns. These core principals are outlined below:


Risk Management:
Risk management is considered by RL Capital to be absolutely critical to successful trading and is the core component across our trading models.  We understand the importance of money management believing that superior trading results are a function of proper, disciplined techniques.  Currently, the Diversified Program contains the following characteristics.

•    Systematic, quantitative trading models that utilize technical inputs
•    Volatility overlays to manage position size and sector exposure
•    Diversification across over 30 markets and 8 sectors
•    Disciplined control of leverage
•    Rigorous money management application


Research Process:
The RL Capital research process begins with setting aside personal biases and using proven statistical techniques to test various ideas about market behavior.  Any new concepts put through our testing process are done so within the framework of certain, unchanging fundamentals mentioned previously, such as riding winners, cutting losses, and never risking too much on any individual trade.  

Specifically, new ideas are tested for both worse and best case scenarios to ensure reliable outcomes for a range of market conditions over a long period of time.  For example, a system can be built that would exploit any one set of markets or market conditions wonderfully, but may fail at providing a consistent return or at protecting capital during a different set of conditions.  While our individual systems are not built to make money in every market timeframe, they are designed to take advantage of certain conditions while preserving capital in others.  

 
Client Services
RL Capital maintains an unwavering commitment to customer service.  We feel uniquely positioned by offering clients real-time access to our managers and traders, ad-hoc data analysis and relevant marketing materials.  We treat every client as a partner and place a premium on honest, transparent communication at all levels of our firm.  

Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. 

Past performance is not indicative of future results.