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Published July 7th, 2021

High frequency trading strategy for the US stock market
Nick Radge and Craig Fisher discuss the US High-Frequency Power Setups®

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.

Performance

** Please read the performance disclaimer below
Performance results for US High-Frequency strategy

 

US High-Frequency Portfolio FAQs

How much does the US High-Frequency Portfolio cost?

The US High-Frequency Portfolio is available within the Power Setups®. Power Setups® are short term trading strategies. The Power Setups® is $605 incl. GST for a 12-month membership. The Power Setups® are also included in the Chartist Pro package.

What payment methods do you accept?

Payment is via credit card however we can also provide an invoice if you would like to pay via bank deposit. To request an invoice, email Trish and include the name of the individual or entity for the invoice, address and phone number.

Is the membership tax-deductible?

Check with your accountant or tax advisor.

Which broker do you use?

We use Interactive Brokers for this portfolio. Nick Radge also uses the Chartist Smart API to manage the strategy but this is not essential.

Do I need any software?

No, unless you choose to use the Chartist Smart API. The US High-Frequency Portfolio is an advisory service and does not require you to buy software or data.

A more extensive list of instructions is included within the Members Area.

** Performance Disclaimer

Important Information on Performance for the US High-Frequency Power Setups®

PAST RESULTS ARE NOT INDICATIVE OF FUTURE PERFORMANCE.

Information containing hypothetical or simulated results has limitations and may not represent actual trading. Since the trades may not have actually been executed in the market, the results may under or over-compensate for the impact (if any) of certain market factors, such as lack of liquidity. Simulated trading programs are generally designed with the benefit of hindsight and without the need to predict which way the market may turn. No representation is made that any trading strategy will or is likely to achieve profits or losses similar to those shown.

Performance data shown assumes that securities are held for the specified time period, based on entry to exit price and entry and exit criteria. It does not allow for the initial entry fee or exit fee (when applicable) or the effect of dollar costs, inflation, taxation, broker fees, interest on margin, dividends, franking credits or membership fees. Different brokers, platforms and/or providers may offer different execution prices.

Returns are historical. Investment returns are volatile and future performance is not guaranteed. Performance figures are updated at irregular intervals and may not show the most recent data.

The material on this website is general in nature. It does not constitute personal investment advice or personal trading advice. Any advice or educational content provided is general in nature and does not take into account an individual’s objectives, risk profile or financial situation. Trading involves the risk of loss as well as the potential of profit. You should seek independent financial and taxation advice in deciding if trading is appropriate for you. Please also consider the appropriateness of the advice in light of your own objectives, financial situation or needs.

You specifically acknowledge and agree that your use of our online advisory services is at your own risk. While all material herein has been prepared based on information believed to be accurate at the time of publication, subsequent changes in circumstances and the market may occur at any time and may impact the accuracy of this information.

It is up to you to make the decision whether or not to act on a recommendation to trade. We provide information which may help you to make that decision.

The risk of loss in trading securities is limited to the amount invested. However, the risk of loss in trading derivatives or using leverage may not be limited. This means you may lose more than the amount required to hold and control the particular derivative or security.

The high degree of leverage that is often obtained in futures, options and contracts for difference can work against you as well as for you. The use of leverage can lead to large losses as well as gains.

This brief statement cannot disclose all the risks and other significant aspects of securities and derivatives markets.