striker report February, 2020 
striker report coffee
Developer/CTA Interview
Dean P. Hoffman
President of Strategic Trading Systems, Inc.
Program(s) Developed: Hoffman Asset Management
Interview Date: October, 2007
Interviewed by John F. Gallwas - Founder of Striker Securities Inc.
A follow-up to our May 2006 interview with Dean Hoffman, the President and Trading Manager of Hoffman Asset Management, Inc. (?Hoffman?), with offices in Mechanicsburg, PA. Hoffman is a registered Commodity Trading Advisor and member of the National Futures Association (NFA # 345235). Since 1987, Mr. Hoffman has been actively involved in systems trading and is also President of Strategic Trading System, Inc., a leading developer of computerized trading systems. The Hoffman Managed Account Program uses a multiple non-correlated technical strategy which is spread across (72 markets both domestic and international) all US futures markets and eight international futures markets. The program was modified on April 1, 2007, and is now being offered to investors interested in alternate investments through the Hoffman disclosure document dated September 17, 2007 This interview is for informational purposes only and is not intended to be a solicitation of any kind. Potential investors should read the above referenced Disclosure Document carefully before making any investment decisions.
John Gallwas: As mentioned above, your recent disclosure document says that you modified the original program on April1, 2007. Please tell us about the modification and why you believe it was necessary?

Dean Hoffman: I changed the way I managed risk across a portfolio. I began noticing that markets that should theoretically be uncorrelated can go through periods where they correlate highly with one another. This can create drawdown scenarios larger and faster than one would expect in portfolios seemingly spread out across uncorrelated markets. The changes I made were meant to mitigate higher levels of risk from unexpected potential correlation.

John Gallwas: Although there is only 5 months of results to evaluate, is the performance to date what you expected and what are your performance targets with the modified program?

Dean Hoffman: Certainly the performance to date has been good and yes, it is within the ranges of what I expected. The program?s goal is to earn average returns in the 35% range with maximum drawdowns under 15%.

John Gallwas: Walk us through how the program selects the futures contracts to trade as well as how investor?s portfolio is managed?

Dean Hoffman: The program scans over 70 markets every day and through a process of ranking narrows down a smaller universe of those markets to put ?on the radar?. Once the optimal markets are chosen it is then that a series of 5 different systems generate orders across those markets. There are also many layers of risk control. In fact, for approximately every ten trades generated only one of them is taken. The primary reason a trade is rejected has to do with unacceptable risk is one regard or another. After the trade is taken it is managed on a number of different levels, both individually as well as how it impacts the portfolio.

John Gallwas: Managed futures are becoming more popular for overall portfolio diversification. Tell our readers why your program may be a good fit for someone thinking about adding this kind of alternate investment to their portfolio?

Dean Hoffman: I believe that I have created a niche product for the smaller investor who wants the advantages of being able to broadly diversify over 70 plus futures markets. Typically a CTA who trades across that many markets would be expected to have minimum account sizes of a million dollars or more. Or, the other CTA?s that do accept smaller accounts typically are concentrated in far fewer markets or are involved in options trading only. By combining both a large diversified portfolio along with a smaller minimum account size I believe I have filled a huge void in the typical CTA offerings. The actual minimum account size I accept is a nominal amount of $125,000. Nominal account size is the amount that profits and losses are computed against. However, it is also possible to notionally fund the account with as little as $50,000. Notional funding allows you to trade ?as if? you had $125,000 in the account yet do it with much less funding.

This interview is for informational purposes only and is not intended to be a solicitation of any kind. Trade only with risk capital. The risk of trading can be substantial and each investor and/or trader must consider whether trading systems are a suitable investment.
In This Issue:
Featured Interview(s):
George Pruitt »
Author, Trading System Developer
From Previous Issues:
 Resource Links 
Published at
Striker Securities, Inc.
940 N. Industrial Drive
Elmhurst, IL 60126, U.S.A.
Contact Striker

Copyright © Striker Securities, Inc. All rights reserved.
There is a risk of loss in trading. It is the nature of commodity and securities trading that where there is the opportunity for profit, there is also the risk of loss. Commodity trading involves a certain degree of risk, and may not be suitable for all investors. Derivative transactions, including futures, are complex and carry the risk of substantial losses. Past performance is not necessarily indicative of future results. Please read additional risk matters on our web site, It is important you understand all the risks involved with trading, and you should only trade with risk capital. This communication is intended for the sole use of the intended recipient.

About this report The information and links on this website are for informational purposes. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). Striker is registered with the Commodity Futures Trading Commission ("CFTC"), and was formerly registered with the Securities Exchange Commission ("SEC"). Additionally, Striker is a former member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure.

The trading performance cited throughout our web site is based on actual trading history, unless otherwise noted. The starting account balance is based on the system developer recommendation. Striker tracks actual performance by recording and maintaining each trade ticket for each system generated. The performance information assumes that no additions or withdrawals have been made. The rate of return for all systems disclosed in the Striker Report is cumulative from the day the system actually started trading at Striker. We maintain a "life" track for all 3rd party systems. We do not necessarily base our records on any particular client account. No one particular customer has achieved these results. The percentage returns reflect inclusion of commissions and fees.The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not a client takes all signals for a system) in the specified system and money management techniques.

Striker is a revolutionary concept in action: an international, professional team of brokers dedicated to trading only for clients. It bears repeating: unlike most other brokers, Striker does NOT trade futures for itself or any of its employees. This policy has been in place from the start in order to guarantee that our entire focus remains on the interests of our clientele. Striker believes that when brokers are allowed to trade for themselves (or have in-house trading practices) there is a strong potential for conflict of interest, as the broker may place more importance on his own trading activities (or that of his firm's) than on those of his clients. Finally, Striker has no financial ties to system developers, so there no bias or pressure on how we report the actual trading results posted in our client section. This section is designed specifically for Striker's clients, so they may audit their results on a daily, weekly, monthly, or annual basis.