Long/Short Equity Strategy

Bot ID: 50acaf38-6da1-485d-8be2-99d2d2877612

LLM:deepseek/deepseek-v3.2-thinking

Creator:

Ssandx ai

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Name: Long/Short Equity Strategy
Interval: 24 hours
LLM Model: deepseek/deepseek-v3.2-thinking
Start Hour: 21
Start Minute: 40
Time Zone: Asia/Hong_Kong
Agents: CHIEF_INVESTMENT_OFFICERMARKET_ANALYSTEQUITY_SELECTION_ANALYSTTRADING_EXECUTOREQUITY_RESEARCH_ANALYSTRISK_ANALYSTTECHNICAL_ANALYSTFUNDAMENTAL_ANALYST
Margin Power: 2
Short Power: 2
Activated: Inactive
Last Run: Apr 29, 2026, 09:50 PM Asia/Hong_Kong
Next Run: Apr 30, 2026, 09:50 PM Asia/Hong_Kong
Latest Run Duration: 5 min

Approach: Long/Short Equity strategy with dynamic net exposure. Increase net‑long bias in bullish regimes and shift toward net‑short or market‑neutral exposure when trends turn bearish. Trades are executed on liquid equities using margin and short‑selling capability.
Risk Tolerance: Medium – risk is controlled through strict position sizing, stop‑loss rules (especially on shorts where losses can be unlimited), and ongoing monitoring of portfolio beta and intra‑asset correlations.
Target Return: 10- 15% annualized, achieved via systematic compounding and disciplined risk control.

Market Capitalisation: ≥ $500 million to ensure stability and adequate coverage.
Valuation (Longs): Price‑to‑Earnings (P/E) ≤ sector median and Price‑to‑Book (P/B) ≤ 1.5 × sector median.
Valuation (Shorts): P/E ≥ 2 × sector median or P/B ≥ 2 × sector median, indicating overvaluation.
Momentum: 12‑month price appreciation > 15 % for longs; 12‑month decline < ‑15 % for shorts.
Quality: Return on Equity (ROE) > 10 % and Debt‑to‑Equity < 0.5 × industry average.
Earnings Growth: FY‑ahead earnings‑per‑share (EPS) growth ≥ 10 % YoY for longs; negative EPS growth ≥ ‑10 % YoY for shorts.

Each signal engine or analyst submits a “Buy”, “Short”, or “Hold” recommendation with supporting rationale.
Voting Threshold: A trade is executed only when ≥ 60 % of the contributors agree on the same action.
Fallback Logic: If consensus is not reached, the algorithm selects the side (Buy or Short) with the higher expected risk‑adjusted return based on the current model outputs.

Position Sizing: Maximum individual ticker exposure = 10 % of total capital; adjust down to 5 % for positions with lower confidence scores.
Net Exposure Limits: Net‑long exposure ≤ 70 % of portfolio; net‑short exposure ≤ 50 %; adapt to prevailing market regime.
Stop‑Loss: Trailing stop set at the tighter of 8 % below entry or 1.5 × ATR; tighten to 5 % once the position gains ≥ 10 %.
Take‑Profit: Tiered exits – 10 % gain → sell 20 % of position; 20 % gain → sell additional 30 %; remaining 50 % held with trailing stop.
Daily Turnover Cap: ≤ 25 % of capital to limit execution risk.
Portfolio Volatility Cap: 30‑day rolling volatility ≤ 20 % annualized; rebalance if breached.
Sector Concentration: ≤ 30 % of portfolio in any single sector.
Correlation Guardrail: Reduce or close positions whose beta deviates > 1.5 (longs) or < ‑1.5 (shorts) relative to the portfolio average.
Cash Allocation: Target cash level is 20% of the portfolio as an optimal defensive buffer. However, this is not mandatory and should be adjusted dynamically based on risk environment, market regime, volatility levels, and overall opportunity set.
- In high-conviction bullish markets with strong risk-adjusted setups, cash can be reduced toward 10%.
- In uncertain, high-volatility, or bearish regimes, cash can be increased up to 40% or more to preserve capital and reduce drawdown risk.

Fundamental Deterioration: Exit if earnings miss > 15 % or if ≥ 2 major rating agencies downgrade the stock.
Momentum Reversal: For longs, trigger exit review if price falls 5 % below its 20‑day high; for shorts, trigger if price rises 5 % above its 20‑day low.
Valuation Drift: Exit long when P/E rises > 30 % above sector median; exit short when P/E falls < 30 % of sector median.
Volatility Spike: Close or scale down a position if its 10‑day volatility exceeds 2 × the portfolio’s average volatility.
Liquidity Deterioration: Reduce exposure if average daily volume drops below 100 k shares for two consecutive weeks.

Cash: $66,583.72

Ticker	Volume	Cost / Share	Allocation
IWM	28	$278.08	7.97%
QQQ	11	$605.67	6.82%
MSFT	16	$393.96	6.45%
NVDA	24	$201.67	4.95%
XLK	32	$140.76	4.61%
ORCL	14	$165.19	2.37%
XLE	-23	$53.95	-1.27%

No tickers