Paratrade Systems does work in 2 primary areas:
Finding Low Risk Buy Signals
We believe that making money frequently or most reliably, requires one to buy when fear is high and sell, or at least reduce, when fear is low. To do so we must find a reliable indicator of fear and its counterpart – that can be applied to every market and every spread. We have constructed measures of market fuel for the S&P 500, US 10 year futures and the "Risk Parity" trade (ES+TY). Complete explanations and updates can be seen at www.paratradesystems.com. You can subscribe to updates through the site.
S&P Plus
1) Many money managers have one primary goal – to “beat the market”. Some try to do so by sticking to growth sectors that they believe will outperform. Others rotate across sectors and some just look for special situations like investing in takeover candidates. In the end very few actually succeed. Many investors have grown tired of paying fees for such under-performance so we see a lot of movement into low fee index funds.
There is another way:
Paratrade seeks to beat the S&P 500 by:
Switching into major indices when they are cheaper than the S&P 500. We use only the most liquid futures contracts and ETF’s (for the DJIA, the Russell 2000 (small cap stocks) and the Nasdaq 100) as alternatives to the S&P 500. We take into account logical trend filters that tell us when each one is most likely to outperform. We then turn over the decision making to a computer algorithm that simulates how we would act given the fundamental relationships that exist between markets.
By working in this manner we expect to beat the S&P by a substantial margin while offering excellent liquidity and low management fees.
All of Paratrade's current relationships are non-exclusive. We are open to flexible arrangements to suit a fund, or family office.