October 2024 was a challenging month for trend-following Commodity Trading Advisors (CTAs), marked by spiking volatility and disruptive trend reversals. The SG Trend Index declined by -4.30% for the month, pulling its year-to-date (YTD) performance to -2.12%, while the TTU Trend Barometer settled at a weak 39%, signaling an unfavorable environment for trend-followers.

Sector Highlights:

• Equities: Persistent inflation fears and central bank tightening led to a dramatic sell-off, with equity trends remaining choppy or short-lived.
• Fixed Income: Rising yields and bond price volatility further complicated trend-following strategies.
• Currencies: Rapid dollar fluctuations offered little relief, exacerbating portfolio losses.
• Energy: A bright spot, with a 4.54% rally as oil prices rebounded, supporting diversified strategies.
• Agricultural Commodities: Mixed performance, with gains in Soybean Meal and Live Cattle offset by weak trends overall.

Performance divergence among managers highlighted the importance of evaluating individual strategies rather than relying solely on benchmarks. The month underscored the critical role of disciplined risk management and adaptive strategies in navigating volatile, unpredictable markets.

As November begins, CTAs remain focused on resilience and disciplined execution to sustain long-term success in ever-changing market conditions.

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