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EFTA02691084

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ATorus, LLC Backtest & Trading Assumptions Entry/Exit Time: Positions are closed over a five day period with an equal amount of shares/contracts sold per day. After being at zero exposure for one period and provided the system has a new price direction signal the new position is entered over an equivalent five day period. Given the targeted return profile (20+ days of realized volatility, which only occurs over longer term intervals of time). we find averaging in over these 5 period intervals increases the probability of a better entry price in contrast to putting on all the exposure in one period (i.e. full exposure trade time / median targeted return profile). Additionally, this greatly expands the liquidity pool, which further enhances the ability to scale the strategy. Price Data: All listed equity prices are VWAP prices for the day. Index and credit data is based on close prices. We view VWAP as the true price where a position of size can realistically be expected to be transacted at. An added benefit, by committing to a certain size VWAP order for the day. the fund can benefit in lower transaction costs or even receive a net credit. On the first trade date of a new signal we always wait until midday to determine whether to begin executing the order. Specially, once we have seen half a trading interval occur, we can calculate the probability of where VWAP will be end of day. which is the price that inputs into the system to determine a trade signal. Position Sizing: Positions are sized based upon the amount of dollar risk allocated to the portion of the book (global macro instruments or listed equities) than multiplied by the respective maximum portfolio target loss (in this case 10%) then multiplied by the current position's realized vol times a factor (7X) and divided by the total amount of positions in the portfolio, and finally multiplied by an initial leverage target (2X). This approach allows every position, at least at inception, irres

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Independent research project. Not affiliated with the U.S. Department of Justice, FBI, any government agency, or Anthropic. All analytical text on this site is AI-generated (Claude, Anthropic) and iteratively fact-checked against source documents, but may contain errors. Verify all claims against linked EFTA sources before citing.
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