A²PT · Strategy Learning Hub
Strategies, unpacked.
156 strategies. Learn the idea through a story, see the mechanics, then test the payoff against real observations.
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- 121Hedging & risk management
Stop-loss, take-profit and exit rules
Exit rules change return paths and payoff distributions. Stops may reduce downside in momentum regimes, but can add costs under random-walk behaviour; trailing stops, take-profits, time exits and re-entry rules have different trade-offs. A triggered stop is not guaranteed to fill at its trigger price; gaps and slippage can increase losses. This tool finds the first exit condition in a supplied path.
- 122Hedging & risk management
Index tracking
Index tracking can hold every constituent or use sampling and derivatives for sparse replication. The goal is usually to reduce tracking error while controlling holdings count, turnover, tax and trading costs; mismatched benchmark weights or timestamps also create deviations. This tool illustrates active return using two constituents and an entered index return; it does not optimise weights.
- 123Carry
Basis-momentum
Basis momentum compares trailing returns on nearby and next-nearby futures, using term-structure changes to capture commodity supply/demand and risk transfer. Research finds a cross-sectional signal distinct from conventional momentum, roll yield and hedging pressure; contract rolls, seasonality and costs matter. This scenario loads no futures curves or historical returns.
- 124Arbitrage & relative value
Capital structure arbitrage
Capital-structure arbitrage compares equity and credit markets for one issuer. Structural models use equity price, volatility and leverage to estimate a theoretical credit spread; traders take CDS positions when market spreads diverge and hedge with equity. Model risk, CDS liquidity, default jumps, recovery, funding and hedge-ratio error can cause large losses.
- 125Trend & time-series momentum
Intraday momentum
Intraday-momentum research finds that the first half-hour market return, including overnight information, can predict the final half-hour return; effects may be stronger with high volatility, volume and macro announcements. Dealer gamma hedging is one proposed mechanism, but the signal does not work every day and spreads, opening gaps and execution costs matter.
- 126Arbitrage & relative value
Covered interest parity arbitrage
Covered interest parity links spot and forward exchange rates to two interest rates. Brief deviations may reflect quotes and frictions; persistent post-crisis cross-currency bases also reflect bank balance sheets, funding and regulation, so theoretical arbitrage may not be executable. This page computes a theoretical forward and compares an entered quote with costs.
- 127Alternative assets
Catastrophe bonds / insurance-linked securities
Catastrophe bonds transfer specified insurance risks such as hurricanes or earthquakes to investors, who earn a spread over the risk-free rate. If a defined trigger occurs, interest or principal may be partly or fully lost. Triggers can be indemnity, industry-index or parametric; model risk, event correlation and liquidity matter.
- 128Trend & time-series momentum
Candlestick patterns
Candlestick analysis defines one- or multi-bar patterns such as engulfing, hammer and doji from open, high, low and close. Patterns depend on prior trend, timeframe and exact rules; classic research finds no value after costs in Dow stocks. This tool checks manually entered two-bar OHLC values against simplified pattern rules.
- 129Mean reversion & reversal
Flow-induced fire sales
Fund redemptions can force managers to sell liquid holdings, creating temporary price pressure; flow research also finds that some holdings may rebound after flows reverse. This calculator uses fund outflows, holding weight and market depth as a mechanical pressure proxy, while the later rebound is a separate input. It does not predict actual sales or price impact.
- 130Arbitrage & relative value
Closed-end fund discount arbitrage
A closed-end fund can trade persistently below or above its net asset value per share. Investors may buy a discount and wait for convergence, distributions, repurchases or liquidation; discounts can persist or widen, and hedge instruments, fees, leverage and taxes matter. This calculator estimates only the price scenario at an entered target discount.
- 131Event-driven & special situations
Insider trading signals
Legally reported insider transactions may reflect managers’ views, but routine compensation, option exercises, tax sales and prearranged plans carry different information. Clustered, non-routine purchases are often treated as more informative. This tool evaluates a user-entered summary of public filings and subsequent returns; it does not use non-public information.
- 132Calendar & seasonality
Investor mood signals
Research has tested whether events unrelated to cash flows, including sports outcomes, weather and daylight, affect investor mood and returns. Results vary by country, sample, event definition and market state, and are vulnerable to multiple testing and ex-post selection. This simulation takes a user-entered mood shock, sensitivity and asset-return scenario; it does not forecast markets.