2023 Dynamic Trade Thesis
Trade Thesis:
Today's markets have shifted in MANY ways from what we have been accustomed to over the last several years.
Quantitative easing and fiscal stimulus led all asset classes to rise (inflate) regardless of their “real” intrinsic value as a result of the surplus in the money supply.
Surplus money, coupled with runaway government spending and rudimentary government policies, has paved the way to the highest inflation rate in 40 years.
The unwinding of Q/E and monetary/fiscal stimulus, coupled with a combination of uncertainty and instability in the geopolitical climate has created a turbulent landscape that will affect the underpinnings of the entire financial system and change market dynamics, technically and structurally, for some time to come.
The recent HIGH volatility coupled with fluctuating sentiment, has created a challenging trade environment. We have shifted from a strong trending market to a relatively volatile market with wide swings in both directions. (binary risk)
Although we think the market’s structure, liquidity, and fluidity are still generally sound from a technical perspective, the opportunity vs. risk component has ballooned tremendously. This risk-reward imbalance calls today’s buy-and-hold strategies into question and puts traditional human-based trading models to the test.
Algorithmic trading accounts for around 60-73% of the overall United States equity trading. According to Select USA, the United States financial markets are the largest and most liquid in the world. *This is expected to grow 12% per year
We have developed a short-term trading program designed to mitigate several types of risk by utilizing a quantitative framework based upon a robust algorithmic model.
We incorporate timing, multiple timeframe (MTF) price structure symmetry, and an extensive framework of precision execution protocols to leverage and exploit short-term trading opportunities on an intraday basis (no overnight risk).
(Precise timing + MTF price symmetry) x leverage = low risk, high reward trading opportunities with higher than average return expectation profiles
Our combination of analysis tools, highly adaptive risk protocols, and trade execution management systems allow for an unprecedented edge in today’s uncertain markets.
We remove the emotion-psychological element of trading by adhering to our algorithmic signals and a quantitative framework coupled with a solid foundation of processes.
As such, we refine the decision-making process through a rigid rules-based trading engine in order to systematically automate much of the trading and risk management protocols.
Additionally, we employ a team-oriented approach for strategy implementation, execution, and management. We have a 2-man team that consists of a senior trader/partner-assisted by an intern/junior trader.
Incorporating a team segregates the daily process and allows for a check and balances system to ensure the strategy and systems are running optimally and efficiently while minimizing risks.
We can simultaneously train new traders for 3-6 months through our Internship/Jr. TraderProgram (3-6 months). *See quantitative trading internship via DCH website.
The attached outline will describe our methodology, strategy, model, framework, process, and general mechanics & protocols for our intraday trading program.
