THE MECHANICAL ESSENCE OF SPA3


During periods of high market risk SPA3's money management rules and market and sector risk rules offer decreased exposure and portfolio balance. The SPA3 money management tool offers correct position sizing for each trade in the portfolio, keeping the portfolio balanced between low, medium and high risk positions at all times.

Position sizing influenced by the market and sector risk is both dynamic and determined by the mechanical rules.

Market Risk Sector Risk Position Size (capital)
LOW LOW 100%
LOW HIGH Reduce position size by 33%
HIGH LOW Reduce position size by 33%
HIGH HIGH Reduce position size by 50%

A Mechanical Edge is a set of rigorous rules and mathematic settings that combine price action and volatility to determine share entry and exit opportunities. To achieve the Edge thousands of hours of technical and fundamental research has been undertaken culminating in back-testing and live trading of over 7,000 trades on the ASX and 40,000 back tested trades on the USA markets to ensure the validity and consistency of the Edge.

SPA3 EDGE

The key to the SPA3 Edge is it's well defined mechanical trading process that has been designed and proven to achieve a "Positive Expectancy".

In simple terms a Positive Expectancy is a statistical probability of achieving a successful outcome.

The SPA3 Edge along with its comprehensive money management and portfolio management has made SPA3 one of Australia's leading mechanical trading systems.

Over the last 7.8 years the SPA3 hEdge Public Portfolio has outperformed the ASX ALL ORDS Index by 24.04 percentage points compounded per annum.

Whist technical analysis has become main stream, ShareFinder has taken it a step further by compiling comprehensive research on the price action of thousands of trades over the last 20 years.

The SPA3 Edge is 100% mechanical to ensure there is no ambiguity about a stock being an "open" or "closed" trade - or the occurrence of the "buy" or "sell" signals.

Due to it's 100% mechanical nature, ShareFinder has been able to research and specify the Edge exactly in terms of statistical probability and graphical portfolio equity curves.