1. Trade Minimally Correlated Strategies. Find a suite of strategies with low to non-correlation to each other. Ray Dalio is richer than only a few people in the world. As he wrote in his great book “Principles,” having a portfolio of uncorrelated strategies is the “holy grail” of investing. The strategies in The Alpha Formula have low correlations to each other and the overall market.
2. Profit in Bull Markets - Have systematic strategies in place for the times when markets rise. Expand your profit making ability by learning how to be long bull markets not only in the US, but anywhere in the world.
3. Profit in Bear Markets - Have systematic strategies in place for the times when markets decline. Yes, there’s been a bull market for over a decade. But we all know this won’t last forever. You’ll learn when and how to go short ETFs from around the world to take advantage of bear markets wherever they exist.
4. Profit During Times of Stress - Have systematic strategies in place to protect (and potentially profit) from times when markets go through times of stress.
5. Profit from Trend Following - Over the longer term, securities trend higher. There’s over 100 years of rigorous academic studies to support this as well as behavioral explanations. You'll learn new strategies to systematically profit from market trends.
6. Profit from Mean Reversion - Over the shorter term (days to weeks), securities often overreact and then mean revert. You will learn new strategies that take advantage of the times when investors panic and the smart money steps in.
7. Take Advantage of Repeatable Human Behavior. Ideally, your strategies will have an inherent behavioral reason behind the market behavior you are looking to profit from. Hardwired human behavior is unlikely to change in any meaningful way and leads to sustainable edges and Alpha.