§16.6Hedges and structures

Fix-and-flip

Buy a run-down property well below market, renovate it and sell for more than the purchase and renovation cost combined.

Asset class: Real estate
Held for: Months
Data: Needs data ARCANE lacks
Symphony: Cannot be built as a symphony

The rule

Signal: Gap between discounted price and renovated market value
Entry and exit: Buy, renovate, resell
Sizing: Single property

How it fails

Renovation overruns
Market falls before sale
Financing and holding costs

Data it needs

property listings
renovation costs

No property data.

How ARCANE uses it

Not tradable by ARCANE. Paper only.

Physical property project, not a market series.

Source: Kakushadze and Serur (2018), 151 Trading Strategies, §16.6, p. 114 of the SSRN version. Described in our words. Hedges and structures is ARCANE’s filing, not the book’s.

Hypothetical backtest; not investment advice; paper trading only.Past results, real or simulated, do not predict future ones. ARCANE places no live orders from this page.