A new year brings a new short term trading model. Similar to previous M models this one focuses on a single issue using a new algorithm merging volatility and momentum. We apply our standard metrics toolbox to high volume, narrow spread, low latency liquid ETFs in search of trading odds with at least 40% more wins than losses over a one year lookback period.
In the case of XIV shown below over 250 trading days the model was vested 131 days with 52 losses and 77 wins. As with previous M models an auto calculated limit stop is applied to all open orders.