Diversified Equities DTP
Diversified Equities Day Trading program is an automated strategy that trades all US stocks from NASDAQ, NYSE and AMEX. In order to create a significant alpha compared to the major benchmarks, the strategy trades both long and short simultaneously. More than 75% of the positions are short positions so it is negatively correlated to the S&P 500. Testing has been done on more than 40.000 listed and delisted stocks.
Each long strategy needs to comply to the following criteria in order to have a setup: sufficient volatility, both long and short term up trend and a significant pullback. When these conditions apply the next day limit orders will be put below the market based on the individual volatility of each stock.
Criteria for the short selling strategy: high volatility and extreme overbought conditions. Subsequently the day after, short selling orders will be put in the market, either at the open, below or above, depending on the volatility and overboughtness.
Both strategies combined, have an individual position sizing based on its historical volatility. Both the long and short system have a maximum amount of executable trades so risk is very well controlled.
All positions close the same day.