Designed to reflect the price trends in a diversified portfolio.

TVI ® Methodology Overview


The Trader Vic Index® is an index which follows a rules-based methodology designed to reflect the price trends in a diversified portfolio of futures contracts across 24 commodity and financial futures markets. These contracts are grouped into sectors and each sector is represented as either a long position or short position (with the exception of the Energy sector, which is represented on either a long position or flat position) depending on recent price trends of that sector.

With the ability to reference both long positions and short positions, the index is designed to reflect the economic benefit of price trends within a cross section of the futures markets over the intermediate-term and does not seek to adjust the “long” or “short” positioning of its sectors (or, with respect to the Energy sector, the “long” or “flat” position) based on short-term movements in prices. Energy, due to significant demand, limited reserves, and price inelasticity and pricing controls, may be subject to rapid price increases in the event of perceived or actual shortages. As such, there is never a short position with respect to the Energy sector in the index. The Energy sector is now comprised of Crude Oil, Heating Oil and RBOB Gas. Natural Gas is a separate sector which may be positioned long or short in the TVI ®, effective May 1, 2012, and therefore is exposed to the risk of being positioned “short” when rapid price increases occur.

The primary objective of the index is to measure, in aggregate, the component trends based on price movements of certain liquid commodity and financial futures contracts. As such, the index reflects the profit (or loss) of those price trends.

The index is implemented in a rules-based methodology and is not intended to be representative of a particular futures market or group of markets. Importantly, liquidity of the index and limiting the volatility of the index were key guides in the determination of the methodology.


* The index methodology is available here.


The TVI ® methodology is available here. Appendix A contains a list of amendments made to the index since its inception. Changes to an index methodology may have material impact on the results of the index, whether positive or negative.

This description is intended solely to provide an introduction to the TVI® and further details are available upon request. No assurances can be made that EAM’s indexes or other products will achieve their objectives or that losses will be avoided. Past performance is not necessarily indicative of future results.

Investors cannot invest directly in an index or other product developed by EAM. Investment products utilizing EAM’s products are speculative and involve a substantial degree of risk. One of the risks associated with the products is the complexity of the different factors which contribute to their results, as well as their correlation or non-correlation to other asset classes. The products could decline in a wide range of different market scenarios, including ones in which other financial products rise substantially. The products should be considered long-term investments; over the short-term there is a much greater possibility that the products may decline substantially, causing significant losses. Any factors which contribute to "trading ranges" (in which there is a lack of sustained, directional price movements in many markets) or “whipsaw” markets (in which price movements reverse suddenly or repeatedly) are likely to be adverse to the trend-following methodology of the products. See “Summary of Risk Factors” in the Terms of Use.

EAM Partners L.P. itself does not provide portfolio management services or any other form of investment advice. In particular, EAM Partners L.P. itself does not direct client accounts or provide commodity trading advice based on or tailored to the commodity interests or cash markets or other circumstances of a particular client. None of the information or material on this website is intended, or should be used, as any form of advice or recommendation. All information provided herein is subject to change without notice.