Strategy
Tactical Capital Allocation Strategy
Weve developed 4 trading strategies in order to accommodate several different tactical approaches to generating returns with variable levels of RISK, while simultaneously providing a strategic framework in which we can quickly navigate and shift depending on market conditions and other variables and unforeseen anomalies.
1.ALPHA- {Moderate- LOW risk} This is our flagship model designed to adopt a LONG/SHORT Hedge fund strategy utilizing our DTE algorithm and tactically implementing trades on BOTH LONG/SHORT side of the trade ledger.
We're able to structure capital across the TIME spectrum of the 3 cycles that we measure and monitor- MAJOR-INTERMEDIATE-MINOR * Major=9-30 days or longer/ Intermediate= 3-9 days/ minor= 1-3 days
Would look something like this- in this example were LONG ENERGY, MATERIALS AND REITS... While being SHORT CONSUMER DISCRETIONARY, TECHNOLOGY,TELECOM,HEALTHCARE...
Additionally, were able to adjust not only our LONG/SHORT RATIO *shown here along the bottom (1:1), but also our capital allocation % based on the ALGO signal profile.
In this example were 1:1 LONG/SHORT, and weve only allocated about 30% of our capital... So, a pretty conservative allocation profile is shown here.
This allows us to deploy more capital when the ALGO signal profile (DMP) is HIGH, and less when its LOW...
2.BETA (HFT)- {Low- Medium Risk} This is our prop model which incorporates the ABOVE APLHA model but just intraday- so NO OVERNIGHT RISK. This would be the pathway to designing our "BLACK BOX" model...
3.GAMMA- {HIGH RISK-HIGH REWARD} Proprietary OPTIONS model utilizing our world class TIMING indicator (DSI) allows us place strategic directional bets (trades) on specific names/ events with a high probability outcome. *Think EPS,FED meetings ext.
4.DELTA- {Medium-Low Risk} This strategy employs a % allocation of ALL the above strategies and can tactically ADD weight to one of or more of the strategies in times of market volatility.
