As a trader, you understand the importance of constantly seeking new strategies to enhance your portfolio. Allow us to introduce you to Quick Short, a cutting-edge trading model designed to capitalise on intraday stock market fluctuations.
In this post, we'll delve into the key features and benefits of Quick Short, providing insights on how it can complement your existing strategies.
What is Quick Short?
Quick Short is a trading model that is based on the principle of mean reversion. The model uses a combination of statistical metrics and a proprietary price ranking system to identify the best stocks to short from the NIFTY 500 universe. One of the key features of Quick Short is its focus on high volatility stocks, which are known to mean revert more frequently. This makes them ideal candidates for the model.
How does it work?
The model uses a combination of statistical metrics such as standard deviation of opening gaps, historical volatility, and a proprietary price proclivity ranking to filter out stocks with the best odds to go short on. These metrics help filter out stocks with the best odds of going short on, making it a high win-rate model. The model is designed to work well in both up-trending and range-bound markets, which occur roughly 70% of the time.
The science behind Quick Short
In finance, researchers have explored the concept of ‘Intraday mean reversion’ and have tried to generate alpha from it. Alpha here means extra returns compared to the benchmarks. Depending on the market and the product being traded, equities, bonds, or currencies, each of them demonstrate distinct behaviours on an intraday time frame.
Is Quick Short suitable for me?
Quick Short is suitable for active traders who have spare cash or equity investments that can be pledged. This model is completely uncorrelated to the broader markets, making it a valuable addition to any trader's portfolio.
Note: It is important to note that short selling is not suitable for all investors and it carries a higher degree of risk. As with any investment strategy, it is important to conduct thorough research, consult a financial advisor and fully understand the risks before committing to the strategy.
The returns stated below are calculated on a base capital that includes a 30% reserve that earns no returns.
*Backtest period for Performance Metrics is Mar’ 2015 to June' 2022
Calendar days in all day metrics; returns include slippages.
Frequently Asked Questions:
How is Quick Short different from other trading models?
Quick Short is based on the principle of mean reversion and specifically focuses on high volatility stocks from the NIFTY 500 universe. This makes it unique from other trading models.
What are the chances of success with Quick Short?
The model is designed to work well in both up-trending and range-bound markets, which occur roughly 70% of the time.
What is the minimum capital requirement?
The minimum capital requirement for Quick Short is ₹50,000 per trade.
How often do I need to act on signals?
It is recommended that you act on 2 signals per day.
How long should I subscribe for?
A minimum period of 1 year is recommended for optimal results.
In summary, Quick Short is a sophisticated trading model that can complement your existing strategies. Its focus on mean reversion and high volatility stocks, along with its ability to adapt to different market conditions make it an excellent addition to any active trader's portfolio. With the right approach, Quick Short can be an effective tool for maximising your returns in the dynamic and ever-changing stock market.
Disclaimer: The information provided in this post is for general informational purposes only. It should not be considered as financial or investment advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.
Past performance is not indicative of future results and all investments involve risk.
The authors and the company they represent do not guarantee any specific outcome or profit.