Long/Short

OP Signal’s Equity Long Short strategy implements a systematic, signal-driven approach to tactical equity exposure. Capital is dynamically allocated between long and short positions in U.S. equities and cash, using the S&P 500 (1x leverage), cash instruments, and inverse S&P 500 ETFs and mutual funds (1x leverage).

Directional exposure is determined by proprietary momentum signals and allocations can vary in magnitude across long, short, and cash positions This flexible structure enables the strategy to capture upside during favorable conditions while managing downside risk during adverse market environments.

Construction Methodology

Position rotation follows a fully systematic process:

1. Signal-based Positioning: Proprietary momentum indicators are calculated daily to identify bullish, bearish, or neutral market conditions. Capital is then allocated accordingly:

• Bullish conditions: long allocations are deployed to S&P 500 ETFs or mutual funds, including 1x leveraged options.

• Bearish conditions: cash instruments or short exposure via inverse ETFs or mutual funds (1x leverage).

2. Daily Monitoring & Rebalancing: Positions are monitored and updated daily to reflect changing signals, ensuring the portfolio dynamically adapts to market movements.

This rules-based process is fully replicable and executed on a pre-defined schedule, providing disciplined risk management while adapting dynamically to market movements.