Trending, anticipating and charting

Mukul Pal ·
In continuation of last week’s feature on pair grid, this week we have illustrated how to combine systems. The pair grid system is built on performance. The horizontal row of assets is the top ranked performers among 120 global assets and the vertical row of assets contains the worst ranked performers. The Orpheus premise is that performance is cyclical and the best ranked will underperform and the worst will outperform. Hence a trader or investor is best advised to look at buying (accumulating or holding) from the vertical grid and selling (reducing) from the horizontal grid.
Now of course this may work well for an investor with a multi month holding period. Especially for the investor who is looking at relative outperformance against a group or universe of assets not just trading gains. He is also the one with a lower risk profile and is not leveraged. For the leveraged trader who is running naked trades the pair grid system needs further reinforcement. How do we do it? We combine an anticipatory and a trending system. The anticipatory system warns of an impending reversal while the trending system avoids a premature exit from a large trend.

This feature has been written for ATMA
Enjoy the latest Alpha Global.

Alpha is a daily strategy signal product that gives long only, short only, pair trading signals. Alpha is a numeric Ranking product based on TIME fractals. The signals are carried over minor (10-30 days) and intermediate (above 30 days) time frame. The signals are illustrated through tracker and running portfolios. Alpha can be used by fund managers for relative allocations, traders for leverage bets and high net worth clients for selective trades. This is a part of the time triads analytics developed by Orpheus Research.

Naked and/or pair strategies are not riskless strategies. Time arbitrage portfolio legs should be risk weighted before any implementation. Please mail us for a detailed working or consult a local financial risk manager to execute these pairs. For more details please subscribe to the Orpheus Time Analytics research products.
Performance cycles (Rieki) is a term coined by Orpheus Capitals. This is another name for time triads, time arbitrage, time fractals but expressed in terms of relative performance. Time arbitrage, Time Triads, Time fractals are terms coined by Orpheus Research. Rieki is a bounded oscillator that moves in a range say from 1 to 30. 1 is top relative performance and 30 is worst performance. The idea is that performance is cyclical. A top performer will underperform in future and vice versa. A top relative performer is also the worst value pick and the top relative underperformer is the best value pick.
Time is a social construct and we see time through the life and nature around us. Understanding time can not only give a unifying theory to research of a few thousand years, but also help us understand the world we live in. Time evolves, oscillates and continues. Time comes before everything, but we don’t see it. We just feel it. We believe what we see and this is why understanding what we don’t see is a challenge. Understanding time could bring more than a conventional thought down, it’s a revolution, which could rock the very foundation of economic thought or the geometric structures Euclid laid down in 300 BC. We are at the start of the journey, but if time is indeed the real mathematics, we could see high accuracy in time forecasts.
Stop loss and exits are activated at 4%
Coverage Global: Dow 30 components, Global Indices, ETF SPDRS, Commodities
Orpheus Store
Orpheus Research at Reuters – United Kingdom
Orpheus Research at Reuters – United States