HYDRA.

HYDRA Strategy

PERF_HYDRA

Click to view independent third-party verification by TimerTrac. Note: Hydra began actual trading Jan 1st 2016 but TimerTrac began verification Feb 2016


CONCEPT

HYDRA can be described as a highly active sector rotation strategy which provides long exposure to a variety of markets such as Broad Based US Indexes, Treasury Bonds, Metals and Mining Index, Energy Index, etc.

HYDRA can be considered an aggressive strategy - although it trades multiple asset classes, it invests in only one asset at a time resulting in concentrated exposures. The trading frequency is relatively high where it can switch between assets frequently. Holding periods of trades can range from 1 day to several days. It can also remain in cash for several days if no opportunities are detected.

Unlike traditional sector rotation strategies, HYDRA is not based on relative strength of price momentum among the assets. Instead, the system has a unique rule set for generating signals for each asset. The rule sets are based on economic forecasting models as well as price momentum and price reversion indicators. A 'meta-system' then evaluates the aggregate basket of assets and systems in order to establish a single daily position.

→ View Hydra Trade List

 

For those who are not able to trade at the close, the strategy can be traded at the market open of the following day. You would trade the ETF by simply placing a 'Market on Open' order at night. Here is a comparison of trading at the close versus trading at the next day open - while performance has been slightly lower trading at the open, it has had periods of outperformance and both methods may have similar performance when averaged over a longer time frame:

 

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