Our investment philosophy is based on three core ideologies, built on cutting edge research and experience. By applying these ideologies, we seek to deliver sustainable and significant value to our members through utilizing indexes of global markets, commodities and cryptocurrencies.
I. Fundamental Economic Theory
Sound economic and financial theory govern the foundation of our research, strategy, and execution to help us deliver repeatable results.
II. Systematic Investment Methodology
A disciplined and scrupulous process underlies everything we do. Our investment methodology is based on a rigorous process of design, refine, test, repeat.
III. Indiscriminate Market Mentality
A myriad of different instruments, rarely acknowledged outside the highest echelons of financial theory, provide dramatic insight into the global economy. In portfolio construction, risk management, and trading, we meticulously employ these qualitative and quantitative tools to deliver significant returns.
We've designed our trading strategy to be both profitable and practical. Statistics prove day trading requires immense amounts of time to generate even a small return. Meanwhile, buy-and-hold strategies net an average S&P return of 10% per year. Ten percent is great for asset managers and high net worth investors; it's a tremendous amount of money on an eight figure portfolio. But clients of our online platform are not investing eight figures. We accordingly maximize the value of every dollar by trading as efficiently as possible - only a few times each month. Our money is made through capturing large trending moves on the least number of trades possible. Trades will last an average of 1-4 weeks and are placed at key moments of opportunity to generate significant profit. We do not trade often but we trade smart.
Our research investigates and determines the most impactful market signals to our investments. From global macro trends to inter-market patterns and relationships, we scour the financial landscape to attain every last piece of information relevant to our investments. Many of the details of our research will remain undisclosed to the general public, but are accessible to our clients within our educational material.
Our analysts constantly evaluate investment ideas, monitor ongoing positions, generate financial models, and harness our various databases to offer an informed, meaningful advisory on all active operations.
III. Artificial Intelligence
The A.I. algorithm we use supplies critical information in determining trade timing and execution. It is by far our most powerful tool. However, there is no single algorithm which can be created to predict every turn in the various markets we trade. To do such would require total isolation of data which does not exist, everything is connected. There are unexpected external events which can occur and create a panic in a market.
IV. Portfolio Construction
One to five positions will typically be held at any given time, lasting from one week to three months, diversified amongst the equity, commodity, and cryptocurrency markets. Positions will often be hedged to mitigate risk.
V. Risk Management
Our risk management approach continuously employs monitoring and benchmark technology to accurately evaluate risk and determine:
Balance sheet and leverage
VI. Capital Allocation
A controlled and systematic approach governs the framework for our capital deployment. These principles are documented and communicated through our Money Management Guide.
ETF’s reflecting the United States Stock Market’s major indexes: the Dow Jones Industrial Average, S&P 500, and Nasdaq comprise our equity investments. Owning individual stocks on a long term basis is fine, but with trading over shorter periods of time we prefer to take binary risk out of the equation and stay with ETF's, avoiding individual companies. This way any significant bad news on a individual stock can't hurt us. By trading individual names on a short term basis you need to be right twice. Once with the overall market direction and second avoiding any individual risk. We occasionally will break this rule for the correct risk reward scenario.
Over the past two decades, we’ve identified exceptional opportunities in the commodities markets, and will continue to frequently trade gold, silver, and oil.
Investments in volatility and the volatility risk premium provide a suitable hedge for equity strategies as well as outright standalone strategies.
We capture large trending moves in the cryptocurrency markets primarily through Bitcoin.
XI. Investment Vehicles
Exchange-traded funds (ETF's): As the United States stock indexes and precious metals are not individual companies, ETF’s reflect the movements of our traded markets. The following is a list of ETF’s we have utilized since their inception and will continue to trade:
DIA (SPDR Dow Jones Industrial Average ETF)
SPY (SPDR S&P 500 ETF Trust)
QQQ (PowerShares QQQ Trust)
GLD (SPDR Gold Trust)
GDX (VanEck Vectors Gold Miners ETF)
SLV (iShares Silver Trust)
VXX (VIX Volatility Index)
USO (United States Oil Fund)
UNG (Natural Gas Fund)
HYG (High Yield Corporate Bond Fund)
TLT (20+ Year Treasury Bond ETF)
BTC/GBTC (Grayscale Bitcoin Trust)
Options: Options occasionally comprise some of our preferred trading strategies.
***We do not follow, trade, or recommend penny stocks or speculative thinly traded stocks.