METHODOLOGY

Sona Trading has developed and now utilizes a proprietary trading methodology that is both systematic and technical in nature. The principle objective of the system is to profit from major and sustained price trends in the futures markets. The system employs short, medium, and long term positions, while seeking to maximize profits during strong trends and reduce overall exposure when markets are trendless. The disciplined trading approach uses computer generated trading signals and evaluates the strength of a trend via utilization of conditional probabilities. Trades are managed to exploit established trends and neutralize exposure during unfavorable market conditions.
The Sona Trading methodology is founded on having multiple independent systems being utilized simultaneously. The strength of the methodology is found in the multiple trading systems working to filter and confirm one another. This process of filtering and confirming through multiple systems applies to the entire life of any individual trade where the sytems are working in concert at both entry and exit.  Open positions are continuously going through a similar process of  strength evaluation in order to systematically determine both enhancement opportunities and exposure reduction points.

DIVERSIFICATION

The Sona Trading system is continuously evaluating over 50 markets worldwide. These include futures and commodities in sectors such as grains, energies, indices, currencies, softs, metals, and government securities. The Advisor is not limited to these sectors and may add or delete any market from the trading portfolio, at its discretion, without client notification.  On average the system will have open positions in 20 to 30 of these markets, however, this number is not constant and may be significantly more or less than this average at any given time.
The diversification model that Sona Trading follows over non-correlated sectors reduces dependence on any given sector while minimizing the risk of any single position. More is said about this Risk Managment strategy below.

RISK MANAGMENT

Risk management is a vital component of the Sona Trading System. A limited amount of capital is risked on each position at trade initiation. Risk parameters are set and held constant across all markets. Position size is dictated according to our model that takes into account both the volume and volatility of the specific market.  Each individual position systematically undergoes a continuous risk assessment, using a comprehensive set of parameters.  The cummulative risk exposure of the comprehensive position also undergoes continuous scrutiny according to our proprietary risk assessment model.  A very tight reign is kept on the total position according to this cummulative risk analysis.
New accounts are usually introduced into the program all at once, with the intention to fully diversify these accounts as quickly as possible. Sona Trading Strategies reserves the right to modify its trading strategies and portfolio selection in light of ongoing research and development, without client notification.