The daily routine for StreetQuants trader
In StreetQuants we always focus on the most profitable way for retail traders. It may be not the most profitable strategy as we know some of the most profitable strategies it is simply not possible for retail traders to implement or not accessible.
We not only want to achieve profitability and allow the public to access and follow with very little investment or trading knowledge. We also want our strategy to consistently outperform the S&P500.
With those criteria in mind, in this article, we will share with you how our daily routine as a StreetQuants trader can achieve all the goals.
- Check the ANN Signal
For StreetQuants traders, the first thing in the morning can check on our Artificial Neural Network (ANN) Signal. The prediction using ANN signal is based on daily movement where it predicts whether the closing price of the day will be above or below the opening price. If the ANN predicts a buy for that day, we will just focus on buy entry for the day and vice versa.
- Use proper money management
Money management is important for every strategy. It is recommended to only risk 1% of every single trade. ANN has an accuracy of 74% which means in a month with 10 trading days, you can expect 2 days wrong and 8 days of correct predictions. A simple strategy that sums up to around 6% return in 10 trading days or 12% return in a month, 144% return in a year.
- Plan your entry and exit
Once we have the prediction we will need to plan for our entry and exit. There are many ways to enter the market. For example, if ANN shows buy for the day and we looking for a buy we can simply place a buy order below the opening price or just simply enter at the opening price. We will not discuss too detail it if you wish to know more entry techniques, you may freely join our telegram (t.me/streetquantschat) to ask for more detail on the entry technique.
Above is a typical StreeQuants traders’ daily routine. Now let’s recap our objective:
Objective 1: Profitability
The strategy does produce a great result of having a return of 6% with the risk of 1% per trade. We can achieve a higher return with an increase of risk per trade however we want to ensure trader can handle during the drawdown period it is recommended to just risk small and trade consistently.
Objective 2: Consistently outperform the S&P500
The average return of S&P500 is about 9% per year. With a defensive way of trading the strategy, it could probably achieve in 2 to 3 months to achieve it.
Objective 3: Everyone can follow and doing it
The strategy is available to all StreetQuants members at a very low cost. Moreover, the strategy is based on daily movement, therefore you have no hurry to rush into trade or require all day to monitor the market. Once your entry and exit are set you just let the market move. For the beginning it may take about 30 minutes, once gets familiar it will only take 15 minutes per day.