Selection Strategies

Selection strategy overview

A selection strategy ranks candidate instruments by a factor or model score and has three subtypes: selection long, selection short, and long/short hedge. All three periodically rerank and rebalance holdings. Rebalancing updates the held instruments; it never switches the strategy direction between long and short.

All three examples below are production templates from Create Strategy → Strategy Templates, covering three distinct styles:

Beginner · Momentum selection
Multidimensional momentum score · Selection long
Advanced · Bull-bear power
Price-volume factors · Long only
Professional · Neutral hedge
Alpha factors · Long-short neutral

💡 Use Load to canvas at the bottom of each strategy card to import its configuration into the strategy editor and start a backtest quickly.

Momentum selection-long strategy

BeginnerFactor selectionTop 100 · 1d

Momentum Selection-Long Strategy

A multidimensional momentum strategy based on the persistence of strength. It combines 20-period momentum, momentum quality (risk-adjusted momentum), momentum acceleration, trend strength, and WorldQuant factors to select the five highest-scoring instruments from the Top 100 universe for a long portfolio, rebalanced daily.

Core logic
Multi-horizon momentum
Calculate 5-, 10-, and 20-period returns to capture trends across different horizons
Momentum quality
momentum_quality = 20-period momentum / 20-period volatility, selecting instruments with the best risk-adjusted momentum
WorldQuant factor enhancement
Add WQ017 (VWAP change × price acceleration × volume rank) and WQ029 (price rate of change × volume) to strengthen the score
Composite score
Raw momentum 25% + momentum quality 30% + acceleration 20% + trend 15% + WorldQuant factors 10%; buy the top five by weighted score
Workflow node configuration

Bull-bear power selection

AdvancedFactor selectionTop 100 · 4h

Bull-Bear Power Selection

Ranks instruments cross-sectionally across three dimensions: buying versus selling power, volume quality, and price momentum. The ratio of buyer power (close minus EMA13) to seller power (EMA13 minus low) measures market control, while the share of advancing OBV volume and VWAP deviation confirm capital-flow direction.

Core logic
Bull-bear power ratio
bull_power / bear_power > 1 indicates buyer dominance; standardize it cross-sectionally with a Z-score
Volume quality
20% weight on the share of advancing OBV volume + 15% on VWAP deviation to measure capital-flow direction
Momentum confirmation
A 30%-weighted combination of 10- and 20-period returns confirms the price trend
Composite score
Bull-bear power 35% + advancing-volume share 20% + VWAP deviation 15% + momentum 30%; buy the top five by weighted score
Workflow node configuration

Long-short market-neutral hedge

ProfessionalFactor selectionTop 100 · 4h

Long-Short Market-Neutral Hedge

A market-neutral strategy that uses cross-sectional alpha factors to buy the top-ranked instruments and short the bottom-ranked instruments, hedging broad market beta. c_residual removes long-term momentum beta exposure to isolate a pure-alpha momentum signal, which is combined with price-volume correlation and return skewness into a composite score.

Core logic
Alpha momentum
c_residual(ret5, ret20) removes beta exposure and extracts pure-alpha short-term reversal momentum
Price-volume correlation
The 20-period price-volume correlation; a high correlation indicates a healthier trend
Skewness factor
Negative skewness receives a positive score because historically, negatively skewed instruments tend to rebound
Neutral hedge
Buy the top five high-scoring instruments and short the bottom five low-scoring instruments to create market-neutral exposure
Workflow node configuration
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