The main difference between Dynamic Alpha Trends and Portfolio Alpha Trends lies in their investment allocation strategies. While both include the same bullish signals in large-cap and mid-cap stocks, identified with a high probability of profit, their allocation strategy helps differentiate them for investors who want to hedge their positions v/s investors who want to leverage their investments.
Portfolio Alpha Trends allocates all available capital to a maximum of five bullish trend signals. The goal is to maximize returns while investing only in highly liquid stocks. If two stocks are identified as trending with a high probability of profit, 50% of the allocation is given to each stock. If three stocks are identified, then 33% is allocated to each, and so on. The allocation is always 100% among the trending stocks. If there are no trending symbols, 100% allocation is given to cash. This is an aggressive allocation strategy and is ideal for investors who want to hedge their positions.
On the other hand, Dynamic Alpha Trends allocates 20% capital to each bullish trending stock up to a maximum of five. If one stock is identified, then 20% of the capital is allocated, with the remaining 80% allocated to cash. If there are two trending stocks, the allocation would be 20% for each stock and 60% in cash. This investment style aims to generate high returns at low risk profile, making it ideal for leveraged trading and derivatives investing.
Performance of Portfolio Alpha Trend v/s Dynamic Alpha Trend:
Dynamic Alpha Trends is a low-risk version of Portfolio Alpha Trends. Portfolio Alpha Trends is recommended for traders who do not wish to use leverage and would prefer to hedge their positions while Dynamic Alpha Trend is suitable for those interested in leveraged investing.
How to use Portfolio Alpha Trends
How to use Dynamic Alpha Trends