SHAD's trading strategy is strictly technical; no fundamental analysis is employed. The strategy was developed from analysis of patterns of actual price movements, and is not based on analysis of supply and demand factors, general economic factors, or world events. SHAD has conducted analysis of these price patterns to determine procedures for initiating and liquidating positions in the markets of certain commodity interests. The price movements are valued using technical indicators including, but not limited to, moving averages, trend lines, channels and bands.
The underlying premise of SHAD’s trading approach is that commodity interests will, from time to time, enter into periods of major price changes to either a higher or lower level. These price changes are known as trends, which have been observed and recorded since the beginning of market history. In the opinion of the principals of SHAD, there is reason to believe that in free markets, prices will continue to trend. The trading approach used by SHAD is designed to exploit these price moves.
The general trading strategy is defined as “trend following”. Most, but not all, trade initiations and liquidations are in the direction of a trend. The SHAD program employs a number of trading models acting independently. Each model generates its own entry and exit signals and trades the long and short side of each market. With minor differences only for long or short positions, a particular model trades each determined market with the same rules and parameters. The models utilize time frames which vary from short-term to intermediate to long-term that have attractive performance characteristics in various market conditions, and complement other model performance in the program.
SHAD-1 currently trades domestic commodity markets including, but not limited to, grains, meats, stock indexes, metals, interest rates, currencies, softs and energies.