US High-Frequency Power Setups® Portfolio
A Short Term Trading Strategy for Experienced Traders
The US High-Frequency Power Setups® Portfolio is for advanced traders only. This computer-driven strategy identifies stocks in strong uptrends that have experienced short-term minor weakness. It looks to buy that weakness in the expectation that the longer-term trend higher will resume. Positions are held for an average of 4 days. Nick Radge trades this strategy.
About the US High-Frequency Power Setups®
The US High-Frequency portfolio is a short term, long-only, mean reversion strategy with an average hold period of 4 days. It is designed to provide a high level of consistency by doing large amounts of transactions with minimal holding times to exploit the strategy’s edge. The strategy trades the Russell 1000 universe.
This portfolio attempts to buy weak stocks during an upwardly trending broader market. It measures a specific level of weakness at which a near term bounce becomes more probable. If and when the desired bounce occurs, the strategy will exit positions quickly to lower exposure. This strategy will only ever have a maximum of 20 open positions.
Position Sizing and Portfolio Selection
The US High-Frequency strategy is designed to operate with 20 positions of equal size. To maximise returns the highest allocation recommended is 10% at 50% margin. However, to lower risk, the allocation should be set to 5% without margin. ** WARNING: The use of leverage can lead to large losses as well as gains.