Managed futures gained 1.91 per cent in October, according to the Barclay CTA Index compiled by BarclayHedge.

After three consecutive profitable months, the index is now up 4.53 per cent for the year.

“A depreciating US dollar and rising prices for equities and commodities in October continued to drive CTA returns for the second month in a row,” says Sol Waksman, founder and president of BarclayHedge.

“Although QE2 has been harshly criticized at the recent G-20 meeting, judging by its stated objective to increase dollar flows into investments, the Fed's second round of quantitative easing seems to be working for the moment.”

All of Barclay’s eight CTA indices had gains in October. The Barclay Diversified Traders Index was up 3.25 per cent, agricultural traders gained 3.18 per cent, systematic traders rose 2.28 per cent, and discretionary traders gained 1.47 per cent.

“Strong gains in the commodity sector provided excellent opportunities for diversified traders,” says Waksman. "Prices for silver, sugar, coffee and cotton increased by double digits in October."

The Barclay Agricultural Traders Index has now gained 10.40 per cent year-to-date.

“Fears of a crop shortage have propelled grain prices upward,” says Waksman. “Corn prices increased by 17 percent in October, while soybeans gained 11 per cent.”

The Barclay BTOP50 Index, which monitors performance of the largest traders, rose 1.87 per cent in October.