The Itrac Overlay is a near term (next day) S&P 500 index forecaster. The high quality forecast gives either a “long” or “flat” position signal each evening for the next day. This information is then used used to modulate position sizes to both increase returns and reduce draw downs. Position changes occur on average less than once a week, so it is not necessary to make a trade every day.
The information is used to enhance performance relative to the “buy and hold” strategy. It can be applied to the S&P 500 index via futures, ETF’s, or baskets of equities acting as a proxy to the index, etc. Users can fully modulate their holdings based on the forecast, or can scale in and out of positions as lightly or aggressively as they choose.