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​​Kinkopf Capital's Trading Philosophy


Kinkopf Capital Management, LLC uses a systematic technical analysis approach that incorporates a diverse array of data that is programmatically analyzed and then statistically evaluated to produce a trading system that is long term stable yet robust to react to system changes over time. Mr. Kinkopf has been trading the S&P 500 index futures since 1989.

Kinkopf Capital Management, LLC core investment philosophy adheres to a strict process that follows a disciplined approach towards trading. Ken Kinkopf designed the statistical trading system to dynamically manage risk by using various techniques combining volatility measures, reversal flow, price target stops and timing stops. He calls his approach "Dynamic Risk Management".  In addition, Mr. Kinkopf's trading system reduces market exposure by approximately fifty percent during an average year by limiting equity exposure to system tradable events only. Mr. Kinkopf continuously trades this SP system on a live daily basis since 1999.

In December of 2007, Kinkopf Capital introduced an additional and highly innovative layer of risk management by incorporating Volatility Scaling (VoS) to its program. This component has proven to significantly reduce volatility. In April of 2014, Kinkopf Capital further expanded its risk management process by incorporating additional trade control and monitoring parameters to its core system. The new component called Octagle provides an eight view, multidimensional governance on trade components.  We expect this component to further reduce volatility while allowing additional capture opportunities. 

In July of 2015 Kinkopf Capital intergrated VoS with Octagle for its volatility scaling. On the same day, Kinkopf Capital announced its second managed account program named "S&P SELECT". Unlike the S&P program, S&P SELECT has a minimum investment of only $25,000. The key features of this program is it's designed to be less volatile using a smaller investment, both of which have been requested by IB's and investors. Rather then using key market internals, price will be the primary deterministic component to initiate trades. A short term trend component allows for possible short term trend captures. Trades may occur less often but for longer durations. Only the top ranked trades categorized by Octagle are taken.  Risk management and discipline are the keys for long term success in the markets. Discipline will allow our investment strategy to remain viable in the face of market adversity.

Investor Expectations


As an investor in any speculative venture, you must be comfortable with the amount of risk capital required for this investment. As an investor, you need to have realistic expectations about rates of return, tolerance to temporary drawdown's, and acceptance that the risk of loss always exists.  Those who prematurely close their accounts out of panic and fear when they have encountered a period of flat returns or drawdown will inevitably experience losses. One should refrain from prematurely closing the account but instead, allow the account time to recover from those temporary losses in equity over time.

It is the opinion of Ken Kinkopf that a wise investment decision would be to commit the risk capital for a minimum of three years and preferably five in this managed account program. The longer the period of time, the higher probability that the account can benefit from the compounded rate of returns.

Successfully futures trading involves patience and perseverance. Managed accounts should be looked upon as a long term portfolio component designed to help balance overall portfolio risk while adding diversification.