Pinnacle Alpha Fund achieves excellence through superior performance by way of our strategic approach to investment. Pinnacle Alpha Fund focuses on delivering top-tier returns while employing a methodical and disciplined investment strategy. The focus is on achieving the highest level of success for our clients through calculated and well-executed moves in the market.
At Pinnacle Alpha Fund, we aim to provide clients with viable investment options, allowing them to diversify their portfolios and achieve above average returns with below average risks.
We aim to achieve this by incorporating our state-of-the-art algorithms and trading systems, built around statistical and mathematical edge, allowing us to determine early market trends, leading to higher gains and also significantly reducing the underlying risks. With the goal of returns exceeding 25% per annum, ensuring greater return on investment and higher utilization, making sure that your money is consistently working for you
Investment Policy
This investment programs seek absolute return through the application of several combined strategies trading on derivatives with underlying currencies, stock indices and commodities.
Our aim is to achieve a performance which is decorrelated from traditional markets, whilst not linked to a benchmark. The returns behaviour shall not be affected by any bear or bull market in any of the asset classes, but rather take advantage of intraday volatility of the underlying.
The trading is deployed on the top 10 most liquid currency pairs, major European and US stock indices, metals and energy commodities. The exposure on these underlying assets is performed with investment on futures or contracts for difference.
These derivatives allow Pinnacle Alpha Fund to both take long and short position, while utilizing a leveraged exposure between 50 to 100 times of the invested capital.
Up to 60% of the exposure is allocated on stock indices, up to 25% on currencies, up to 15% on metals and energy.
Investment Strategy
The management team implements a semi-automated approach, combining 6 different strategies based on in-house trading algorithms.
- Strategy One
The strategy identifies intraday breakouts on statistically significant levels where change in volatility, after contractions, take place. The strategy generates 95% of the trades on currency pairs and 5% on metals. On the metals side, we trade on GOLD, given the volatility and price range characteristics. The trading system operates on different timeframes, taking in consideration short-term and medium-term volatility of each instrument, calculating absolute volatility and average true range. All entries are placed between European and US session and 95% of the trades are closed before the Asian session. Each position is managed with hard stop, keeping a target Required Rate of Return of 1:3.
- Strategy Two
The strategy works on counter trend, combining statistical and fundamental analysis on the selected markets, where the entries are combined after movements statistically out of mean, calculated in standard deviations of the asset. Buy and sell zones are identified on each asset, based on the last 20 years price movements. This is then filtered by a set of parameters that the system screens on the markets: yield curve, spread between bonds in different markets, delta in GDP and inflation. The strategy is applied to currency pairs metals and stock equities (S&P500, DAX and FTSE100). Each entry is managed with stop loss calculated on percentage of the capital. Money management rules apply in conditions of favourable market, by compounding of the trades, where the stop losses are moved closer to the last market price to whichever logic level prevails between breakeven and trailing stop.
- Strategy Three
The strategy works on 18 different currency pairs, during low volatility hours in the three trading sessions. The system identifies hours with higher probability of ranging movements and places pending orders based on the predicted market range. 70% of the trades are closed intraday. An extra layer of screening is applied by having a filter based on market news, which prevent the system to place any order on the market before and after the expected news release.
- Strategy Four
Price inefficiencies on the futures market, where the system works with a full systematic screening of order flow on the futures market with underlying GOLD, EURUSD, GBPUSD, Dow Jones and Dax. Variables that are taken in consideration in the screening are: delta in open interest, delta in cumulative volumes, main positioning on call/put options with different expiries, market volatility lower than preset thresholds. The system runs automatically the screening of the variables and our team activates it in determined dates, when the probabilities of success rate are the highest. The trades would be systematically open for only few minutes, taking advantage on discrepancies between spot and futures pricing on different exchanges.
- Strategy Five
ES options based strategy, which employs a selling volatility model through both short term systems, which are shorting options from 0 DTE to 1 DTE on stripes from 0.1 to 0.3 delta – asymmetrical on the call side – combined with delta hedging on ES futures. Choice of low DTE brings the advantage of avoiding vega risk, deriving from sharp rises in implied volatility. In regards to positions opening, short OTM options positions are all open before the US session through combo trades. The hedging is performed looking at the variation of the delta and with variable parameters with different grade of sensitivity based on the volatility on the market, enhanced by machine learning. If the option expires ATM, it is rolled with relative futures position to delta hedge.
- Strategy Six
This trading strategy is designed to capitalize on market volatility during high-impact news events, with a focus on ultra-short-term trading. The strategy leverages the rapid price movements that occur immediately following the release of significant economic data or news, executing trades with holding times between 50 to 150 milliseconds. The primary instruments traded under this strategy include currencies, metals, and occasionally, indices, depending on market conditions. The primary objective of this strategy is to generate consistent returns by capitalizing on the short-term volatility induced by high-impact news events. While the holding period is extremely brief, the frequency of trades and the precision of execution are key drivers of profitability.
The management team intervenes manually on the automated systems in cases of excessive volatility or situations of critical liquidity on the market, either by anticipating the liquidation of the positions or by pausing the algos.
When choosing the size and stop levels for each financial instrument a risk-based approach is applied: this takes in consideration average price volatility, together with the historical performance and related maximum drawdown for the single instrument. The percentage allocation on each strategy is also based on the scalability and liquidity on the market for the specific assets.
Email: [email protected]
Pinnacle Alpha Management Limited
5-9 Main Street, Gibraltar
38 Warren Street, Suite 7A
New York, NY 10007
United States of America