The volatility of the managed futures component of the portfolio can be further reduced by combining a complementary blend of CTA strategies, for example 1) Highly diversified long term trend following, with 2) short term (not diversified) equity index counter trend program + a 3) small allocation to a volatility arb or mean reversion strategy. The combined mix should have a long term volatility that is almost as low as bonds, and a substantially improved return to draw down ratio. This can be achieved without giving up the ++positive diversification effects of managed futures (i.e. ability to insure a passive long or long-short equity portfolio).