AST is a trend following strategy, with concentration in the Mini S&P500 Futures and Options markets. The trading model is based on a technical analysis (charts compression techniques: Japanese KAGI and Scheme Charts) and statistical research during the past 20 years (since 1996) of daily and intra-day changes of the United States stock markets, â€œRisk Movement Matrixâ€ (RMM).
The strategy utilizes a computerized technical trend-following model with various levels of money management techniques. The model objective is to profit from sustained futures price trends while decisions are made based on signals from KAGI and Scheme Charts.
To enhance and balance returns, a covered and/or uncovered options are traded to capture premiums and increase potential profits. The trading involves combination of options strategies by buying and selling E-Mini S&P 500 options, usually between 2-6 weeks until expiration. . For analyzing the option strike price we also use our unique mathematical model â€œRisk Movement Matrixâ€ (RMM) personally developed by Alexander Shpak. Depending on the Volatility Index of the S&P 500 (VIX), different options strategies â€“ usually straddles, strangles and butterflies, are chosen and implemented on client accounts. Naked put options writing is usually not allowed with VIX values above 25, though exceptions can and do occur