Survive first. Thrive second.

Markets are dangerous, so we place great emphasis on risk control. We always try to live to fight another day, so we’re in a position to capitalize on a big trend whenever one shows up.

Our founder, Michael Melissinos, experienced the wrath of the markets working as a young man at Bear Stearns and J.P. Morgan through the Financial Crisis. He quickly learned the importance of protecting capital and obeying the trends.

At Melissinos Trading, risk control, respecting the trend and discipline course through our bloodstream. All three constitute our edge. Without them, we could not survive.

Our investing methodology is built on values and research and it evolves through experience.

Our approach is adaptive and reactive. It focuses on following trends, not predicting them or romanticizing about how markets used to be. We adapt to the here and now – allocating capital to markets exhibiting strong momentum, sticking with what’s working and moving on from what’s not as quickly as possible.

We believe in simple and robust. Both increase the odds of long-term survival.

Maintaining a flexible imagination helps us plan for the unexpected. It helps us follow trends no matter how we feel about them. We simply go with the flow. In markets, as in life, anything is possible, so we do the best we can to prepare for rare, dangerous and opportunistic trends.

Here is a short list of lessons we have learned over the years:

– No trend lasts forever
– The unthinkable happens quite regularly
– Long-term success derives more from strong relationships than from fancy math formulas
– No one can consistently predict trend direction or magnitude
– Complex and curve-fit investing methodologies eventually die
– Robust non-curve fit methodologies, when followed with perfect discipline, never die

Focus. Focus. Focus. We shield ourselves from distraction and the non-essential. We have a deep-rooted need to survive and win. When we see opportunity, we push. When we risk, we run.

We value teamwork over showmanship. We like running a lean and cost-efficient operation; it helps keep stress low and allows us to focus on executing our strategy with precision.

Our advantage comes from our Founder’s experiences: a humble upbringing, a near death car accident that ended a prospective pro baseball career, working at Bear Stearns through it’s collapse and later at J.P. Morgan through the Financial Crisis and surviving through two of the worst environments for trend following on record.

From the beginning, we’ve made the local investor the backbone of our client base. Being able to make money for people within our community brings joy and meaning to our work. It gives us a heightened sense of responsibility.

Our flagship product, the Eupatrid Commodity Program (ECP; Greek for “well-ancestored”), is designed to identify and follow long-term price trends in global commodity and financial markets.

Generally, most of our profits come from a small number of large trends. Such opportunities do not come around all that often, so we spend most of our time protecting capital and waiting for large trends to develop. When they do, we pounce.

Research helps us find what works and what doesn’t, especially over long periods of time. We combine historical research, simulations and real-time experience to design an approach that maximizes long-term survival by respecting and capitalizing on ever-evolving trends.

ECP is built on strict rules that determine where to look for trends, when to participate, when to stay on the sidelines and how to manage risk. Rules help us organize our plan and allow us to focus on discipline, which we feel is most important. Learn more about ECP.

Markets, and life in general, exhibit trends and cycles. Sometimes markets stagnate for many months or years, putting the viability of our approach to the test. Having launching our business during one of the worst environments for trends in the last 40 years, we’ve come to understand the importance of research, resolve and discipline.

During losing periods, we put extra emphasis on discipline and teamwork. It’s during the hard times when people lose patience and abandon the plan – typically at the worst possible time and, as a result, miss the opportunities that show up right around the corner.

What we’ve learned from losing periods:

– Modifying or “improving” the approach isn’t always a good idea
– Being upfront with investors on how and why we’re losing money goes a long way to building trust
– Trading a diversified portfolio doesn’t always help
– Increasing your investment can potentially improve long-term returns. Why we invest in drawdowns.
– Test and reinforce our discipline of following the system

We are as careful in selecting our investors as we are in designing our investing strategy.

After working on Wall Street through the Financial Crisis, Michael decided to make local entrepreneurs and businesspeople the backbone of his client base. The profits we generate can change the lives of people with whom we interact and do business with every day.

Working for people with whom we have an emotional connection brings intense meaning to what we do. If we make money for our investors, it helps them send their kids to better schools, improve their standard of living and health, build or improve their own businesses and give back to great charities. Learn more about the charities we believe in.