What are tactical trades?
Tactical trades are usually short-term trades, typically on an intraday basis. These types of trades are bought and sold according to the strategic rules in an investment model.
Tactical trades are made within a portfolio according to the investment model you have selected. These types of trades are made for any position that is currently trending. In the faith-based models, for example, any of the top 50 ranked positions are eligible for tactical trading. As long as a position remains in the top 50, our trade team will continue making tactical trades on that position. If a position no longer qualifies for tactical trades, it will no longer be traded. Any remaining positions are usually sold as soon as they reach their corresponding goals.
Tactical trades are usually made alongside core trades. Unlike core trades, tactical trades are bought and sold intraday and may be bought and sold repeatedly on the same day. In general, of the cash being used for any given position (stock, etf, etc.), 50% will be used on core trades and the other 50% will be used in tactical trades. However, this can depend partly on the stock itself, the current environment, and desired impact.