The nordIX Government Bond Strategy (“GBS”) is based on three principles: simplicity, transparency and liquidity. Only three markets are traded – T-Note Futures, Euro-Bund Futures and Long UK Gilt Futures. Capital is allocated equally amongst those three markets. Each market is traded according to a daily and a weekly model with capital split equally between the three groups. Trading is conducted only at pre-specified times, usually at each market’s local opening, i.e. the daily models trade at local opening each day and the position is held until next day’s local opening whereas the weekly models trade only on Mondays’ local opening and the position is held until next Monday’s local opening. Positions can only take the form of long, short or neutral. We only predict price direction and do NOT specify a price target.

nordIX utilizes off-target modeling. That is, the trading system does not try to predict the price direction of a market by looking at the past price behavior of that market. Rather, the approach is based on semi- and non-parametric methods, especially machine learning and ensemble techniques.