“If you don’t bet, you can’t win.
But if you lose all your chips, you can’t bet.”
Jesse Livermore
Systems
Short Term Models
Short Term Models
Short term systems are split between Momentum and Mean Reversion.
By combining these complementary systems, traders can:
- Smooth out PnL via different market Cycles
- Reduce false signals by requiring multiple confirmations before entering or exiting a trade.
- Enhance timing precision by leveraging different perspectives on momentum and market conditions.
- Improve risk management by applying layered filters and stop-loss strategies adapted to varying market regimes.
- Adapt to changing markets more effectively by blending breakout, continuation, breadth, and pullback strategies.
Short-term systems form the tactical component of the investment framework. They are designed to complement long-term positions by providing timing precision, volatility control, and crisis-response capability. Each model, Momentum, Mean Reversion, and Crash/Reversal, is governed by clearly defined quantitative rules combined with discretionary oversight. Together, they create a diversified engine that adapts to shifting market regimes, reduces drawdowns, and improves overall portfolio stability.
Momentum
The momentum strategies capitalise on trending sectors and stocks, investing in securities with strong upward price movement. By identifying and participating in established trends, this strategy seeks to enhance portfolio growth.
Regime:
These strategies are most effective in trending market environments, where certain sectors or stocks exhibit sustained upward price momentum.
Mean reversion
Mean reversion strategies identify opportunities where prices have deviated significantly from their short term historical averages, with the expectation of a return to the mean. Variations of this strategy are employed to capture gains from price fluctuations within a range.
Regime:
These strategies is best suited for neutral or range-bound market conditions, where prices are expected to fluctuate within a defined range, providing opportunities for profit from mean-reverting price action.
Crash system (mean reversion)
Reversal detection system focused on buying deeply oversold, panic-driven markets. High-conviction long entry system built to identify moments of market capitulation. Extreme downward conditions where selling has become so intense and exhausted that a mean-reversion or reversal is highly probable.
Regime:
Designed to recognise precise turning points in extremely high volatile periods where risk is asymmetric to the upside