Blake Capital Management, Inc. : SRD Short Equities

Summary

The SRD Short Equities program trades the E-Mini S&P 500 future contract with a bearish directional bias (betting the stock market will decline). SRD Short Equities attempts to “sell resistances” in the market, seeking to benefit from short or medium-term tops. This trading program uses stops for protection and seeks a multiple of any amount risked. This program may be considered an appropriate compliment to individuals and institutions that are passively long equities, or those desiring an actively-managed trading program that generally goes short the stock market. Because of this program’s meticulous risk-management, we believe it may serve as a stand-alone, institutional-grade trading solution to today’s volatile equity markets.

Investment Strategy

Traders may conceive supports as "floors" and resistances as "ceilings." When a floor breaks it may later become a ceiling, and vice-versa. This simple mechanism gives the Manager many of its signals. Other proprietary strategies include anticipating short-term exhaustion points based on pattern recognition. The program is 100% technical and mostly systematic in nature, and operates on a short-term time horizon, rarely holding positions overnight or into the weekend. Risk management is always priority number one.

Risk Management

Limit orders to initiate a position and stop orders to close a losing position are entered together, without exception. The Manager generally intends to risk approximately 0.25% of client equity per trade idea. The SRD Short Equities program is for sophisticated investors, though daily VAR is generally 2% or less of account equity.