The key is to buy weakness and sell strength in large cap stocks($10B+ market cap). We buy the worst performing large cap stock and sell the best performing large cap stock one hour after market open. We hold for a week. We do this every day splitting up positioning over 10 different stocks(5 long, 5 short). I believe that we can easily get 5% a week with 2:1 leverage using this strategy. The strategy Is market neutral because we have an equal positioning on long and short stocks.
We use Yahoo Stock Screener with the following settings:
Large Cap and Mega Cap
$7 minimum intraday price
700,000 minimum intraday volume
$100,000 account with $200,000 total positioning(2:1 margin)
Each day, one hour after market open, we go long $20,000 on the most negative large cap and short $20,000 on the most positive large cap. The total positioning each day will be $40,000. We do this in 5 trading day cycles. We hold each position for a total of five trading days. In total we will always hold 10 positions(5 long, 5 short) each one .2X. 1 long, 1 short each trading day.