- INSTRUMENTS TRADED: Double Leverage Stock Indexes S&P500, Nasdaq100, Russell2000, Gov't Bond, Precious Metals Stocks Index, Energy Stocks Index. Implemented using frequent traded Profunds or Rydex mutual funds. Can also be traded with ETFs.
- TRADING FREQUENCY: Signals generated daily approximately 15 minutes prior to market close.
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.
IMPLEMENTING THE TRADING SYSTEM
This system is recommended for traders that can commit to being at their computers during the last 15 minutes of every US trading day. This is when the HYDRA trades are generated and you will implement in your account accordingly. Important note: because this is a daily trading active system, you will not receive email notifications of signal changes - you will need to log in every day in the last 15 minutes of the US session to check for new trades.
If you are unable to trade the system yourself due to time limitations or lack of comfort level, it can be auto-traded in your own account by a professional money manager. For details please visit our Auto-Trading page for details.