Blended Trading Method. Benefits of Combining Intra-Day and Trend Following.

Hopefully you have had a chance to examine our core trading algorithm approaches applying our F Trend, trend following  algorithm and our F1 and F2 intra-day S&P 500 e-mini strategies. Both of our trading approaches have their benefits to a variety of market environments.

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My foray into the development of trend trading algorithms came to a foundation in 2001. It wasn’t until 2012 while I was implementing my initial ES strategies that I begin to see the real potential benefits of trading the strategies together as a combined portfolio of markets utilizing intra-day and trend following for a combined synergistic portfolio approach. 

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By combining our F1 and F2 algorithms a synergy is gained and the trading system portfolio is referred to as “Spa” (notice a theme here). Then there is the option for another layer of portfolio diversification by combining our F1 and F2 emini strategies with our F Trend, trend following strategy.

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When combining our intra-day e-mini strategies and F Trend, we add a 10 market F Trend portfolio and we are able to see how the strategies really complement each other.  See our trading system  reports. 

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One of the biggest and most obvious benefits to the combined portfolios is that they are non-correlated. Many times, when one is doing well the other is just hanging in there or even pulling back a bit and vice versa. As such, the equity curve is smoothed, the returns are increased and the drawdowns are lowered overall.