For years, many CTAs and Hedge Funds have invested in building systematic strategies. Most of these strategies have specialized
either in Trend Following or in Contrarian approaches. Although these may be straight-forward to understand,
the drawbacks of these approaches is the fact that they do NOT work AT ALL TIMES. For example,
many Trend Following Managed Futures strategies performed poorly in 2009, despite a bullish
year for Stock Markets.
Since its incorporation in 2008, IT-LYSE has decided to take a different approach
that we believe is original and more robust. Combining both Trend Following and Contrarian Intraday Strategies is something that successful traders often do. IT-LYSE has decided to adopt a similar approach via the development of a Multi-Strategy Trading System.
IT-LYSE has decided to take a very specialized approach and focus exclusively on European Equity Index Futures, mainly the Eurostoxx 50. In order to diversify trading it developed a set of different and complementary trading strategies which are fully automated and operate in parallel.
The result is an approach to systematic trading with the following characteristics:
Intra-day Trading (No Overnight Gap)
16+ complementary trading subsystems make up the POTS trading system (8 Long and 8 Short), with each one seeking to identify and trade a specific Market Psychology
Small risk taken per subsystem (less than 0.5% of capital)
No Overtrading (less than 2 trades per day on Average)
What is Market Psychology Trading ?
Market Psychology Trading is a step ahead of pure technical analysis based trading. It adds the concept of market understanding to find statistical advantages. This statistical advantage on Equity Index futures is in many cases due to the fact that the corresponding Equities are also traded by Index Funds. Some of these funds claim to their customers that they will do better than the market. That allows a certain degree of predictability in the way market behave. Typical movements that are traded are looking for behaviours such as :
Since 2011, IT-LYSE expertise and trading product is made available to finance professionals such as Hedge Funds, and Family Offices. Feel free to contact us for more information
More about our P.O.T.S Auto-Trading Software