Intraday Alpha

I got an idea of Intraday Alpha instead of Market Timing while meeting with equity derivative research team from a broker. Here is the performance of the intraday alpha before, during, and after the Fed announcement of rate lift:

Ultimate timing system

Signals from different strategies and securities have been aggregated and integrated. It's now fast and accurate:

Long bias in the equity market, any selloff is short live

Two-day selloff is stopped by the strong job report. This is another evidence that news can always cause unpredictable outcomes. Last strong job report caused a selloff, this time comes with a strong rebound.

Anyway, our pairs trading model has been proved to be able to pick up the market directions. It promptly suggests to close the previous positions and open "long NDX and short Dow", or simply buy in SPX, or short VIX.

It's also very interesting that during the strong selloff, the previous "short NDX long Dow" still lost 20 bps, while short position in SPX gained 0.76% in 4 days.