Commodity Trading Advisors can take advantage of price trends regardless of whether the market is rising or falling. For instance, if they feel that the markets have the potential to rise then they can buy in anticipation of a price increase. Conversely, if they anticipate the market to fall then they can sell short.

There is no restriction on short selling in the futures market as in the stock market.

Although losses occur in managed futures, managed futures investors can profit in many different types of economic environments. This is partly because the futures markets are diverse and often exhibit independent price movement.

During periods of hyperinflation, hard commodities such as precious metals, energies, grains, livestock, and currencies often do well. Although past results are not indicative of future results during deflationary times, the futures markets can provide an opportunity to profit by selling short in a falling market with the expectation of buying back the position at a lower price. CTAs can also use sophisticated spread strategies that combine futures and options on futures positions in an attempt to profit during periods of flat or neutral markets.