Historic Surge in Natural Gas Prices Burned Traders Relying on Algorithms

The historic volatility witnessed in US natural gas futures over the past week caught out some money managers who use algorithmically driven trading strategies.

Gas futures doubled in a matter of days as Arctic weather gripped much of the country and sent demand for the fuel soaring. The turmoil inflicted losses on speculators who’d been betting prices would decline, including some market players known as Commodity Trading Advisers, or CTAs, according to analytics firm Kpler Ltd.