I often tell traders that a few things drive how quickly they will be able to raise assets. These include the length of track record, pedigree, and performance. The ability to run a successful investment business is another underrated aspect of a successful offering. It is this context that makes Greg Srodon a rare find. Not only does his experience jump off the page, but he has also successfully run a program for 15 years that generated a Sharpe just under one, a hugely desirable target over that breadth of time. Markets do indeed change, though, and the high-frequency trading revolution affected his ability to take advantage of intraday market swings and forced him back to the drawing board to find another successful strategy. He believes his new program, Divergence Trading Quantitative Capture, is exactly that.
Citing his long-held beliefs in the enduring market principles of following the trend, cutting your losses quickly, and letting profits run, the new strategy utilizes the same principles as his previous successful CTA, the GraniteStar Capital Discretionary Strategy. By expanding his time frames and the number of markets traded, he began to test his ideas and view back-tested results. The results were encouraging, but knowing the limitations of backward-looking data, he started to trade with real money. Keeping true to his mantra of limiting losses, he uses the systematically generated ideas and trades them himself. This allows him to use his experience to validate the signals and manage risk. With an early Sharpe over 1 and increasing confidence in his approach, he is now bringing it to a wider market.
Limited margin usage and a $500k minimum could be an easy add for many portfolios. Early investors can try without a management fee for now as well. Learn more about the strategy in our interview below:
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL.
Photo by Yaniv Knobel on Unsplash