Sage Valley Capital Management : Sage Valley Capital Management

Summary

Sage Valley Capital Management's main technical investment strategy is a momentum-driven strategy that will focus on profiting from trend and counter-trend movements on a daily and longer-term basis. Using various technical indicators and real-time market data, the algorithm will quantify market direction, strength, and momentum to exploit the numerous short-term, counter-trend movements or pull backs. Through the ability to quantify, above a certain threshold, the direction the market is moving, and the strength of such a move, the algorithm picks entry points for trades that have the greatest chances of moving into profitable territory. The goal in picking trades with the greatest probability of profit at all times is to maximize the risk to reward ratio in every position. Having programmed all settings into the algorithm in advance, Sage Valley expects to minimize the risks related to human error and short-term market psychology.

Investment Strategy

SVCM believes that risk management and capital allocation are of paramount importance to any trading strategy. In addition, SVCM believes that any market move presents a potential to capture profits. It is with these two important points in mind that the Sage Valley algorithm was designed. The strategy hinges on simultaneously playing both sides of the market with initial capital allocations of roughly a tenth of a percent of available margin. Any market movement represents a profitable trade for one side of the position, and each time this happens the algorithm automatically takes the profit and renters the position at the current market price. While the algorithm is capturing profits on the one side, it scales into the contradicting position on the other side. The serves the purpose of consistently averaging down the profit target for that position, achieving the goal of allowing any counter trend movement to present a profit taking opportunity.