Stralliance's performance and unique methodologies

  • Stralliance boasts an outstanding 10-year performance record, encompassing a blend of theoretical and actual trade data spanning from 2015 to 2021, followed by full trading operations commencing in January 2022:

    Average +62% pa flat net returns, +94% pa if profits reinvested yearly;

    Worst historical daily cumulative DrawDown:  4.9% DD  (S&P 500: 33.9% DD during the same period);

    Profit to risk ratio:  11.6   (S&P 500: 0.3);

    Yearly Sharpe ratio:  1.8   (S&P 500: 0.4);

    70.4% historical trade win rate;

    Average 11 profitable months per year;

    Avg 29 daily trades per month.

  • We are Long/Short market-neutral - our returns are not dependent on market trends.

  • We trade three of the world's most liquid futures contracts:
    10 Year Note (ZN),  eMini S&P 500 (ES),  eMini NASDAQ (NQ).

    Liquidity is never an issue, so capital gates (redemption halts) are not required.

  • Our trades are open from a few minutes up to a max 22 hours for each market session.  We have no exposure to any long-term or weekend geopolitical risk.

  • Our safety target mandates a maximum 10% risk, measured by daily cumulative drawdowns (DD).  By comparison, the S&P 500 Index had a 34% DD since 2015.  Our current maximum drawdown is significantly below this threshold.  Ensuring capital safety remains our paramount objective.

  • Performance target:  30% pa + net returns, currently exceeding this by x2.  Consistent returns is our major priority.  Stralliance's risk-adjusted performance far exceeds that of any benchmarks or top-performing funds.

  • Stralliance trades a basket of five core systems:

    2 volatility-capture, 3 market-directional, NeuralNet-based, 100% systematic methodologies.
    All five core systems adapt to changing market conditions in (almost) real-time.
    All strategies, as well as our 10-stage risk management, are fully systematic.
    Our five core systems compliment each other well.  There is a low correlation between core systems' performance, hence the relatively low volatility and smooth returns.

  • Stralliance's proprietary multi-layered Recurrent Neural Networks (RNNs), developed and refined over the past 14 years, have been specifically designed to mitigate over-fitting.

    Over-fitting, also known as curve-fitting, is a prevalent practice wherein systems are developed and backtests are optimized to fit past performance.  This often leads to inflated performance metrics that are unsustainable and unlikely to persist in the future.

We live in exponential times.   Markets are evolving at an accelerating pace.   Standing still is not an option.

  • The landscape of financial markets is continually disrupted by emerging technologies such as sub-millisecond HFT algorithms, instantaneous news-scraping bots, and increasingly sophisticated neural networks.   Coupled with a pervasive shift towards shorter-term trading, these factors contribute to rapidly evolving market dynamics over shorter timeframes.

    Trading strategies that were once profitable, even just a few years or months ago, quickly lose their effectiveness and edge in today's dynamic markets.   To stay ahead in this environment, modern trading methodologies must be not only fully systematic but also capable of self-adapting to swiftly-changing market conditions.

  • Stralliance's continually-evolving AI-based methodologies are 100% systematic.

    Originating in 2010 as a more efficient method for backtesting complex trading systems, Stralliance's backpropagation innovation swiftly evolved into the concept of weighted matrices, pivotal components underlying the architecture of modern neural networks.

    Our trading methodologies are based on proprietary Recurrent Neural Networks (RNNs) finding hidden profitable patterns in these ever-shifting markets.   Our edge comes from the correct application of RNNs, a balanced portfolio of complementary strategies, and the understanding and mitigation of every system's development curse:  over-fitting.

    We aim to maintain our profitable edge in ever-changing market patterns, and take advantage of new opportunities as they emerge in highly-liquid markets.   As emerging market patterns overtake and outperform older ones, new methodologies are being continually researched, developed, monitored, reviewed and implemented through our R&D pipeline process.   Our evolutionary Research & Development process never stops.

  • We actively manage capital risk exposure through systematic position sizing.   Our comprehensive 10-layer Risk Management procedures are seamlessly integrated into our strategies to ensure consistent returns.   Contract lot sizing is dynamically adjusted in real-time through precise systematic position management for each trade, contributing to relatively predictable and smoother returns.

  • Stralliance operates in a Long/Short market-neutral environment.   We remain impartial towards future predictions and refrain from making financial market forecasts.   Instead, we assess short-term profit probabilities by analyzing a blend of intricate interdependent factors.   Our methodologies are devoid of reliance on predictive models, focusing instead on a probabilistic evaluation of current market dynamics.

    We apply systematic situational analysis complemented by adept integration of probabilities, to make informed decisions which typically yield favorable outcomes over the long run.   Amidst a plethora of competing hedge funds, Stralliance stands out as an 'edge' fund, uniquely positioned to capitalize on market opportunities.

  • Stralliance's cutting-edge methodologies and proprietary neural networks are the culmination of Jose Silva's unwavering drive and passion for financial engineering:

    - Approx 42,000 man-hours ($12 million just in programming fees) full-time R&D and programming since early 2010;

    - More than 25 years' experience in the markets, and over 85,000 man-hours designing & building unique R&D tools since 1999.

© 2015-2024   Stralliance  Capital  Management

Past performance is not necessarily indicative of future results.  The risk of loss in all types of trading can be substantial.
The presentation of information and data provided do not constitute a solicitation for investment funds, nor an offer to transact in any commodity interest or any other related financial product(s).