Hedged Strategy

Hedged Strategy

The AP US Large-Cap Hedged 1.5X Shares

It is advisable to use the strategy if you want to protect your money, avoid big drops and at the same time achieve a stimulating return.

Aims to outperform the S&P 500 in risk-adjusted return, achieving above-average returns and low volatility.

13.75 %

An average annual return

17.1 %

The maximum decline
Advantages of this strategy
High performance
Low drawdown
4.71 % higher average annual return than S&P500
30.41 % lower max drawdown than S&P500
Balanced diversification among the US market
Based on machine learning and artificial intelligence
S&P 500 AP Hedged
Initial capital $ 100 000 $ 100 000
Final capital $ 331 290.11 $ 594 325.86
CAGR 9.04% 13.75%
Max drawdown -47.51% -17.10%

Note: The results represent the sample period for which the promotional materials were made, 01/2008-11/2021. From 01/2008 to 05/2020, the results represent a backtest.

Beat the market on risk-adjusted return.
For risk-averse investors seeking stability.
Real trading results from 6/2020

Since 1st June, 2020, we have been applying the strategy live on the Interactive Brokers account.

Performance comparison of our AP Hedged Strategy with the S&P 500
Drawdowns comparison of our AP Hedged Strategy with the S&P 500

Empirical research in statistics, machine learning and artificial intelligence

Based on these tools, we can automatically rate stocks from the most undervalued to the most overvalued and determine which stocks shall become a part of the strategy. The strategy involves buying long and short positions using leverage of 1.5. The portfolio is rebalanced at regular monthly intervals. This strategy works best with brokers enabling the trading of fractional shares.

The stated results do not take into account stock exchange fees and taxes. When applying the strategy at Interactive Brokers, the fees are approximately 600 USD per year for non-US residents. No fees apply to US residents. If the account is not held in USD, the fee for using leverage is about 0.6% per year.