RISK-ON/RISK-OFF.

perf_riskon_riskoff

  • INSTRUMENTS TRADED: Double Leverage S&P500 & US Gov't Bonds. Implemented using frequent traded mutual funds (Rydex or Profunds) or ETFs
  • TRADING FREQUENCY: Signals generated daily approximately 15 minutes prior to market close.

CONCEPT

RISK-ON/RISK-OFF is a quantitatively based, frequent activity trading system designed to profit from daily movements in the stock and bond markets by taking long positions in the S&P500 and the 30 year US Treasury Bond.

The system is based on the concept of risk-appetite and risk-aversion where market participants tend to flock toward risk assets (stocks) during bullish sentiment and toward 'safety' assets (government bonds) during bearish sentiment.

The system uses several short term market driven indicators to gauge the near term market sentiment (risk-on or risk-off?) and will take long positions in the S&P500 or the US Treasury Bond or both. Below is a chart illustrating how the positions can frequently change in this system:

roro-portfolio-comp

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 RISK-ON/RISK-OFF 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.

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