LTR Algo Strategy

The Investment Algo from short to midterm trading

LTR INDEX TOP 5 (Trading Package)

  • With the LTR Algo (Long Term Run Algo) We offer the possibility to trade five indices in parallel.
  • LTR belongs to the group of Investment Algos and thus differs from the Trading Algos MAX, SELECT and ULTRA. Trading Algos have a short trading period (time-in-market ca. 2-4 days), while the Investment Algos have a trading period of 1 up to more than 300 days if there is a trend in the index.
  • Our Investment Algo LTR has several functions built in. It stays in a position as long as possible if the position develops well and closes this position if the position reaches a certain level of maturity. If, on the other hand, a position does not develop well, an attempt is made to sell it as quickly as possible.
  • It may therefore be that a freshly taken position is sold again quickly or that it also remains in the depot in the longer term (which is the goal). The algorihtm adapts automatically between short and long-term trading.
  • LTR is also a reversal algorihtm and per definition not a trend following systems in its basic structure but with the aim of holding the positions for a longer period, if possible.
  • Furthermore, LTR also takes into account the development of the open profit versus the closed profit and, if below a certain level, switches to a different, active sales mode of the entire portfolio. The aim is that the closed profit curve shows only small downward phases and that pronounced upward phases are exploited comprehensively.
  • You decide for yourself with what kind of  instruments you want to trade the signals (e.g. ETFs, certificates, etc).

 

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LTR INDEX TOP 5 trading package

IM “LTR INDEX TOP 5″ trading package get the trading signals for the following indexes:

  • DAX 30 Performance Index (R)
  • Dow Jones Industrial Average Index (R)
  • S & P 500 Index (R)
  • Nasdaq 100 Index (R)
  • SMI Index (R)

 

How do you start with an Investment Algo like LTR?

The LTR Algo is most probabily already invested in some positions in the INDEX TOP 5 portfolio at the time of your order and in others not. You should not start buying the current running positions retrospectively. At the beginning, you wait for the first buy signal for your first position and fill your account with additional positions step by step with the following buy signals. This way, you roll into your portfolio. For each position, you will receive daily information as to whether something needs to be changed or not, i.e. whether the position is up for sale or not.

Key figures for the LTR INDEX TOP 5 trading package

(For the description of the key figures, see also traderama.com/methologyl)

The chart above shows the calculation of the development of the cumulated closed and open trading profit (% of starting capital). This representation serves to illustrate the ratio of unrealized open postions (blue) and closed profits from closed positions (gray). The open profit is often above the closed profit. When managing the positions, the LTR Algo takes into account not only the development of the position itself, but also the development of the two trading profit functions. This causes the Algo to propose a quick exit from a position in phases where the market is trending sharply downwards to close all the position in the portfolio. At upward stages, the LTR Algo tries to maintain the position for as long as possible. When the position “matures,” closing scenarios are unlocked that sell the position. This means that the closed profit converges more with the open profit function. You can see this in the stair-shaped course of the closed trading profit (gray).

In the chart above, we have listed all trades from the calculations since 1995. You can view the individual trades per index during this period.

In the table above, we have listed relevant key performance figures for each index.

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Choose your LTR INDEX TOP 5 subscription with different running times