OVVO Financial Systems has crafted an innovative investment tool and methodology that has outperformed conventional market returns on a risk adjusted basis. OVVO Financial Systems has named this instrument "CHORAL Neural Network". CHORAL is a composition of hundreds of time series analyzing mechanisms designed to co-operate and reference one another on a real-time basis, offering a dynamic inter-strategy allocation. It utilizes a proprietary fractal market analysis to simultaneously create portfolios of individual securities within a larger portfolio of securities. The self-similarity methodology allows CHORAL to enter and exit positions more effectively, in essence generating an intra series signal without the possibility of a false confirmation. This methodology has generated positive alpha and reduced beta on an individual security and portfolio basis.
Another benefit to CHORAL's methodology is its ability to dramatically reduce correlation between historically very highly positive or inversely correlated securities. Additionally, CHORAL is effective in the US Equity & Fixed Income Markets, Foreign Exchange Markets, and Commodity Markets.
The other advantage we enjoy is that all of this is achieved through a purely quantitative, fully automated framework. Our model parameters are NON OPTIMIZED thus enabling a durability to the models our competitors cannot claim.
Equities - All listed US Equities
Agriculture - CBOT Corn, CBOT Soybeans, CBOT Wheat
Energy - NYMEX Crude Oil, NYMEX Natural Gas, NYMEX RBOB Unleaded Gas, NYMEX Heating Oil
Interest Rate - CBOT 2-Year US Note, CBOT 5-Year US Note, CBOT 10-Year US Note, CBOT 30-Year US Bond
Metals - COMEX Gold, COMEX Silver, COMEX Copper, COMEX Platinum, COMEX Palladium
Softs - NYBOT Cotton, NYBOT Sugar No 11, NYBOT FCOJ, NYBOT Cocoa, NYBOT Coffee
Livestock - CME Lean Hogs, CME Live Cattle
Foreign Exchange Pairs - AUD/JPY, AUD/USD, CHF/JPY, EUR/GBP, EUR/JPY, EUR/USD, GBP/JPY, GBP/USD, NZD/USD, USD/CAD, USD/CHF, USD/JPY
From these instruments, CHORAL will monitor and generate a buy or sell signal in any or all of these markets at anytime throughout the trading hours of the contracts. CHORAL scales into positions utilizing minimal capital at any given point in time. Positions are subject to multiple stop and target algorithms, and in the event a futures position is held near expiration the open position will be rolled into the following month.
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