The possibility of leverage that futures trading allows is a scary proposition for some investors. But the
choice to apply leverage is just that: a choice. qubit allows an investor to decline using leverage.
Furthermore, trading futures comes along with many benefits over cash positions:
Transparency: Futures prices are determined competitively, and futures positions are marked to
market daily. There are no “dark pools” of liquidity like those one finds in equity markets. There are
no massive interpolation schemes that one finds in most bond markets. As a result, the returns you
see are real and have not been smoothed.
Liquidity: The increased liquidity in futures markets allows the GYfi to realize their full effect. Without
this liquidity, it would not be possible to act on the reads in a timely manner.
For more details on the benefits of futures, see Burghardt’s “Managed Futures for Institutional Investors”