Silicon Valley Quantitative Advisors : Contrarian S&P500 Quantitative Program (CSQP)

Summary

The nature of CQSP is short-term and the average trade length is projected to be under 5 trading days although it could be as short as minutes and as long as weeks. The current trading method relies on two types of analysis - pattern recognition and forecasts based on technical indicators. Multiple systems with varying timeframes are used in each area to generate entry and exits in the traded markets. Forecast based systems are designed to take long or short positions. Pattern based strategies consist of some systems that are long-only and others that are long/short depending on the pattern used.

Investment Strategy

Silicon Valley Quantitative Advisors' CSQP trading methodology relies on an ongoing quantitative study of a database of historical prices of stock index markets. The nature of CQSP is short-term and the average trade length is projected to be under 5 trading days although it could be as short as minutes and as long as weeks. The current trading method relies on two types of analysis - pattern recognition and forecasts based on technical indicators. Multiple systems with varying timeframes are used in each area to generate entry and exits in the eMini S&P500. Forecast based systems are designed to take long or short positions and are symetric in design. Pattern based strategies consist of some systems that are long-only and others that are long/short depending on the pattern used.

Risk Management

CSQP uses a unit based trading strategy where one unit corresponds to a $50K trading level. The minimal account size is two units ($100K) and only full units can be added or subtracted from the strategy. Multiple eMini contracts maybe traded in a given unit depending on market conditions. Risk control is an important element in Silicon Valley Quantitative Advisors' CSQP trading strategy. The targeted maximum margin-to-equity ratio is 25% and position sizes are adjusted according to recent historical volatility and account size, e.g. number of units. Silicon Valley Quantitative Advisors may use stop-loss orders in both winning and losing positions based on technical levels and money management principles. The Advisor has also developed an Auto-Ratchet based system to dynamically scale up or down the number of units traded based on the account equity. Clients may choose this algorithm to manage trading levels, number of units traded, or may specify the number of units they wish to have traded.