LOGU Trading System Biases - Should You Trade Your Strategies Like This? Cobra III NQ Case Study


Over the last 4 months, the short side has struggled more than normal on our short term strategies. You can see that in the Cobra III equity curve over the last few months.


We discuss several ways to bias the strategy.


1.) Should we trade long only?

2.) Should we trade long and shorts but but only on a gap up?

3.) Should we trade long only but only on a gap up?


LOGU = Long Only, Gap Up


The third bias does have some incredible results. We have to consider the market cycles as well as tightening monetary policy. Tighter monetary policy to fight inflation could cause a longer term down trend if they actually follow through with QT. We are not sure that the Federal Reserve will follow through.


This is research without a change in strategy right now. I have more system level research as well as portfolio level research to do before I would make a portfolio change or a change to the trading system.

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