Strategies

Buy assets showing upward price momentum, sell those trending down. Uses moving average crossovers and relative strength. The most researched factor in quantitative finance.

Use machine learning models (gradient boosting, neural networks, transformers) to predict short-term stock returns from structured and alternative data. The modern evolution of statistical arbitrage.

Rotate capital between sectors based on economic cycle positioning. Overweight cyclicals in expansion, defensives in contraction. Uses macro indicators as signals.

Buy stocks that have dropped significantly below their moving average and sell those trading well above. Based on the statistical tendency for prices to revert to the mean.

Allocate capital so each asset class contributes equally to portfolio risk, rather than using traditional 60/40 stock/bond splits. Uses leverage on low-volatility assets to balance risk across stocks, bonds, commodities, and inflation-linked securities.

Trade the difference between implied and realized volatility. Sell options when IV is high relative to historical vol, buy when cheap. Delta-hedged to isolate the vol component.

Trade around corporate events: mergers, acquisitions, spinoffs, bankruptcies, and restructurings. Merger arb captures the spread between offer price and market price for announced deals.

Borrow in low-yielding currencies or assets and invest in high-yielding ones to capture the interest rate differential. A cross-asset strategy spanning FX, fixed income, and commodities.

Sell index volatility and buy single-stock volatility to profit from the 'correlation risk premium.' The index option is cheaper to hedge than the sum of its parts because of implied correlation overpricing.

Trade the spread between two correlated stocks. When the spread widens beyond historical norms, short the outperformer and long the underperformer. Profit when the spread reverts.

Market-neutral strategy using hundreds of small positions. Exploits temporary mispricings between related securities using cointegration and factor models.

Chips, cloud, and the picks-and-shovels of the AI boom. Pure exposure to AI buildout.

NVDA30%

MSFT25%

GOOGL20%

AMZN15%

TSM10%

Defense contractors, aerospace, gold, oil. The portfolio you hope never does well.

LMT20%

RTX20%

NOC15%

GD15%

XOM15%

GLD15%

Companies that have increased dividends for 25+ consecutive years. Slow and steady.

JNJ20%

PG20%

KO20%

ABBV20%

HD20%

Consumer staples, utilities, healthcare. Things people buy regardless of the economy.

PG20%

JNJ20%

WMT20%

UNH20%

KO20%

Solar, wind, EVs, battery tech. Betting on the energy transition accelerating.

ENPH25%

SEDG20%

TSLA20%

FSLR20%

RIVN15%

Meme stocks, high beta, max volatility. Not financial advice. Entertainment purposes only.

TSLA30%

GME20%

AMC15%

PLTR20%

RIVN15%