Directional Alpha

The Directional Alpha Collection Service (DAC) identifies high probability, long and short directional trades using a proprietary 4 level scanner comprising technical, fundamental and factor-based quantitative analysis. The objective of this strategy is to extract maximum gain from a directional move in a short period of time. Each trade is either bullish or bearish, is an in-the-money (ITM) long call or put, and is typically open for 4 to 21 days. The bullish trades are on fundamentally strong companies in bullish technical setups, and the bearish trades are on fundamentally weak companies in bearish technical setups. Four percent of the capital is allocated to each trade. The DAC service finished 2017 UP +28% including commissions.


Summary of Benefits

Managed by a trading-centric portfolio manager who is:

  • Nimble and fast moving
  • Follows strict exit rules and will close positions decisively as dictated by the technicals
  • Dramatically increases the probability of locking-in gains and preserving capital during periods of high volatility

Dynamic Blend of long & short trades

  • Reduces volatility of the portfolio while boosting returns
  • Offers protection during market corrections or black swan events

Sophisticated 4-level analysis comprising technical, fundamental and factor-based quantitative analysis

  • Identify stocks that have moved into high-probability technical setups, including:
    • Accumulation and distribution
    • Relative strength
  • Identify stocks with strong fundamentals, including:
    • Sales growth
    • Earnings growth
    • Pre-tax profit
    • Return on equity
  • Identify stocks with strong statistical bias through factor-based quantitative analysis:
    • Have high probability of making a move up or down
    • Have high probability that the magnitude of the move will be significant
  • Modulate overall portfolio bullish & bearish exposure levels, through:
    • Macro-level fundamental analysis
    • Macro-level technical, market breadth and sentiment analysis

To view the performance of this strategy please go here.

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