HOW TO GET BONUSES?

Use our affiliate link to register with Seasonax, create a free trial account, and during the trial period, buy an annual subscription. Or alternatively, use the promocode "algohubb". Afterward, send an email to contact@algohubb.com with the subject SEASONAX, and we’ll send you the 50 Seasonality Strategies Portfolio, S&P500 Seasonality Map, and Exposure Master Tool.

+ 50 STRATEGIES
SEASONALITY PORTFOLIO

Introduction

The portfolio includes 50 seasonal strategies ready for use in Algocloud. We have identified three distinct seasons, which help manage these strategies and evaluate their overall performance throughout the year.

Season 1 (spring) – 10 strategies
Season 2 (summer) – 20 strategies
Season 3 (autumn) – 20 strategies

From each season, we selected stocks that have historically shown a consistent upward trend during that period, often linked to industry seasonality or market cycles. By combining these three strategy packages, we created a portfolio that operates 365 days a year, delivering impressive results in historical tests.

Structure and Operating Principles of the Strategy

Entry Rules
- Each strategy relies exclusively on time thresholds, specifically dates.
- This mechanism is entirely deterministic, using only the calendar as a guide, which differentiates it from Reversal, Momentum, or other types of strategies.
Exit Rules
- Each strategy concludes a position at the end of a specified seasonal period, ensuring a straightforward end-of-day closure.
- These simple exit rules reduce the need to monitor additional market conditions.

Portfolio Parameters and Historical Results

Below is a summary of the main parameters and metrics of the test for the entire portfolio of 50 strategies (test period: 2010–2025):

Illustration 1: Monthly performance in $ based on closed positions (2010-2025)

Illustration 2: Portfolio efficiency in % month by month based on closed positions

Illustration 3: Basic statistics and results of the Portfolio, month by month

Maximum Exposure and Positioning

Capital allocated to one strategy: $5,000. Theoretically, the maximum exposure should be $250,000 (50 x $5,000). However, since the strategies are executed at different times throughout the year, the actual exposure is detailed below.
Maximum portfolio exposure: $110,000. The assumed $100,000 account utilizes margin during these exceptional periods of excess.
On average, we engage only 54% of the capital, allowing for the potential addition of more strategies to the portfolio.

Illustration 4: Max and average daily exposure $ and percentiles

Why consider a Seasonal Portfolio?

Diversity through seasonality – Distributing strategies across three seasons reduces correlations within the portfolio.
Simplicity of implementation – Each strategy relies solely on a calendar and a straightforward entry/exit approach.
Historically lower drawdowns – Due to exposure limits and simple exit rules, the maximum open drawdown of the portfolio did not exceed $8,000, or 8%, during the studied period. Although the strategies do not use stop losses, experience in the stock market suggests preparing for larger drawdowns.
Stable, repeatable results – The historical win rate was 81%, with an impressive average profit-to-risk ratio of 2.48. However, due to the nature of seasonal strategies, one should anticipate lower actual results in the future.

Equity Chart for this Portfolio:

Illustration 5: Capital curve of the Portfolio from 2010-2025 and the corresponding maximum open drawdowns in $

Deployment in Algocloud

Import strategy
Load SQX file for each strategy for the upcoming season. Depending on your Algocloud Plan, you may not be able to upload all strategies at the same time. We suggest selecting strategies for the upcoming season. Deactivate strategies after the season to make room for new ones.
Set deployment parameters
Allocate capital to each strategy. We recommend checking your portfolio's exposure using the Exposure Master Tool (you need to backtest the strategies first using the chosen MM).
Live trading
Activate algorithms on a demo or real account. We suggest starting the first season with smaller amounts that you find very comfortable, then scaling up as the account grows.

Summary

The 50 Seasonality Strategies Portfolio is a comprehensive set of automated strategies that:

Leverage proven seasonal patterns in stocks
They are characterized by simplicity and minimal parameterization
Generate high effectiveness with a favorable risk-reward profile
Operate year-round, providing consistent signals

Attention! Due to the nature of seasonal patterns, we suggest periodic adjustments to the strategy (e.g., once a year). You can do it easily using Seasonax.

+ S&P500 SEASONALITY MAP

We have compiled a spreadsheet containing patterns for companies in the S&P 500 index. This resource provides a roadmap for individual seasons and includes a list of tickers that can be traded using various strategies, with seasonality as a filter.

+ EXPOSURE MASTER TOOL

Exposure Master for Power BI analytics allows for a comprehensive and precise assessment of the exposure of your strategy or portfolio of strategies over time. The analysis is created based on the export of a transaction list from a backtest performed in StrategyQuant or Algocloud.

What do you gain using Exposure Master:

Precise knowledge of how the exposure of your strategy or entire portfolio of strategies looks over time based on backtest data.
The ability to interactively review data and analyze from general to specific.