At Agility Trading our goal is to participate when equity markets rally while providing downside protection when markets experience painful selloffs. Our proprietary trading algorithm centers around trading the most liquid exchange traded futures contracts.
This approach allows us to benefit from the inherent liquidity advantages of trading futures contracts - a crucial tool to have at one's disposal during times of market uncertainty and disruption.
Agility Trading’s strategy is designed to provide a "hedge“ against broader market downturns by introducing an array of complementary and diversified strategies on futures contracts positions. These strategies combined have demonstrated a correlation profile that protects against downside losses without sacrificing upside potential.
The difficulty with hedging strategies is knowing when to put on the hedge and when to take it off...
One method to solve this problem is to use options strategies to protect against downside risk, however some research has shown that, over time, options strategies can significantly eat into the overall return of the underlying asset. The cost of premiums plus the losses incurred until the option begins hedging can be substantial.
Another method is to look at historical market behavior to determine the optimal points for reducing exposure and then re-establishing the positions.
At Agility Trading, we go one step further: we've developed a methodology for calculating what have proven over time to be stable and robust probabilities, which enable us to trade more efficiently than at those inflection points. We examine every tick as markets move against equity positions and constantly re-assess anticipated market behavior.
A Private Offering Memorandum for the Fund is available for Qualified Eligible Persons by contacting us at info@agilitytrading.com.