Hivemind Algorithms

The Hivemind (Systematic Volatility Strategies) use mathematical models to quantify the historical and market implied (future) volatility in order to position itself to create positive alpha. The strategies are designed to perform (and have) robustly during extreme market conditions like (August 2015, “Brexit”, and presidential election cycle) by utilizing its unique entry and hedging techniques. The strategies scale their risk (take additional entries or hedge) based on the projected volatility of the underlying assets. The algorithms are all executed automatically with no human intervention.

hivemind on tradestation

Besides people being able to automate the Hivemind Algos through Tradestation; People also have the option of purchasing something called Tri Pro. Tri Pro includes my Daily Watch List as well as an Algo report, plus algo signals from the Hivemind. Profit.ly allows me to record each signal and as stated above you can see the track record for yourself by click here. Every year I try to do a wrap of each years performance. However people ask all the time if they can see the track recorded for the Algos and you can see it on Profit.ly. Everything is dated. 

*Everything
Based On
One Contract

HIVEMIND BACKGROUND

In my system of Algorithms there are six different S&P500 Algorithms that go long and four different T-Bond Algorithms that mainly go long but some do go short. They are based on the idea of non-trending, non-mean reversion models(meaning neutral) and they all work together to decrease risk and ideally maximize profits. Basically centered around the idea of, that through different strategies that are non-correlated on average, they can achieve diversification even though they trade the same markets.

The Hivemind uses mathematical models to quantify the historical and market implied (future) volatility in order to position itself to create positive alpha. The strategies are designed to perform (and have) robustly during extreme market conditions like (August 2015 or “Brexit”), ( November 2016 or “Election”) by utilizing its unique entry and hedging techniques. The strategies scale their risk (take additional entries or hedge) based on the projected volatility of the underlying assets. The algorithms are all executed automatically with no human intervention.

PERFORMANCE METRICS.

  • Between testing (Going Back 2006), simulated testing and live trading the Algorithms have achieved
  • 20.31% Compound Annual Growth Rate
  • A 3.3 Sharpe Ratio
  • They trade liquid markets, so in theory there is no capacity of amount of contracts.(@ES and @TY)
  • They are fully automated for me.
  • These algorithms have been trading live for the better part of 18+ months without a signal adjustment since live trading
  • The portfolio of algorithms makes use of unique volatility tracking and projections to provide superior opportunities/ results.

INTERESTING EDGE BASED ON THE ALGOS.

The % is time the 10Y algos are have x positions (x being the middle column). The ES returns when the 10Y algos have x positions is the right column.

51.08% 0 633.2
22.76% 1 74.3
14.95% 2 555.25
8.19% 3 -34.5
3.03% 4 -330.25

Total Performance Since Profit.ly Inception:

Total Performance Since Profit.ly Inception:

2016 Performance

-YTD returns on Profit.ly hit 34% as of December 31, 2016, as based on the assumption of a 100K account. 

-Sharpe Ratio for 2016 YTD is 2.63

-Strategy performance was evaluated in-sample using daily data for both markets (ES and TY) using the front-month contract.

-Strategies that produce stable out-of-sample performance consistent with in-sample results were further evaluated in simulated live trading and then live trading.

-Compared to other strategies, the Systematic Volatility Strategies operates in their own world using unique volatility measurements and advanced testing methods.

2016 Performance

2017 Performance

-YTD returns on Profit.ly hit 29% as of December 31, 2017, as based on the assumption of a 100K account. 

-Sharpe Ratio for 2016 YTD is 2.3

-Strategy performance was evaluated in-sample using daily data for both markets (ES and TY) using the front-month contract.

-Strategies that produce stable out-of-sample performance consistent with in-sample results were further evaluated in simulated live trading and then live trading.

-Compared to other strategies, the Systematic Volatility Strategies operates in their own world using unique volatility measurements and advanced testing methods.

2017 Performance

2018 Performance

-YTD returns on Profit.ly hit -13% as of December 31, 2018, as based on the assumption of a 100K account. 

-Sharpe Ratio for 2018 YTD is 2.3

-Strategy performance was evaluated in-sample using daily data for both markets (ES and TY) using the front-month contract.

-Strategies that produce stable out-of-sample performance consistent with in-sample results were further evaluated in simulated live trading and then live trading.

-Compared to other strategies, the Systematic Volatility Strategies operates in their own world using unique volatility measurements and advanced testing methods.

2018 Performance

Futures, Equities, and Options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, you may lose more than your original investment. In no event should the content of any Triforce LLC (Matthew Owens) email or website be construed as an expression of an implied promise, guarantee, or implication by or from Triforce LLC (Matthew Owens), its owners or affiliates, that you will profit, or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on any Triforce LLC (Matthew Owens) email or website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. By receiving any communication from Triforce LLC (Matthew Owens), you agree that any information provided is solely the opinion of Triforce LLC (Matthew Owens) and his affiliates and not considered to be investment advice of any kind. You agree to trade your own risk and seek your own professional advice before investing.

Commission Rule 4.41(c)(1) applies to “any publication, distribution or broadcast of any report, letter, circulation, memorandum, publication, writing, advertisement or other literature….” Commission Rule 4.41(b) prohibits any person from presenting the performance of any simulated or hypothetical futures account or futures interest of a CTA (I am Not a CTA), unless the presentation is accompanied by a disclosure statement. The statement describes the limitations of simulated or hypothetical futures trading as a guide to the performance that a CTA (I am not a CTA) is likely to achieve in actual trading.

Additional Risk Disclosure Statement for System Traders:
Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses. There have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss.

All performance metrics mentioned here, on Profit.ly, Interviews, or any place else are deemed hypothetical in nature. According to  rule Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Triforce LLC (Matthew Owens) is not a licensed broker/dealer, nor is he/company a registered CTA, therefore unless other wise third party verified through the licensing government bodies, all performance metrics are hypothetical.  Please refer to our disclaimer for more details. Know that this site is for education only.

All content is provided subject to the qualifications and limitations stated in our Terms of Service