I am just starting off writing an algorithm. I have a question with respect to contest rules. If I trade just one ETF SPY and my strategy is to get in and out of that ETF will my algorithm be filtered out for not meeting contest rules?
I read in the rules that we need to be hedged (have both long and short positions at all times), If I just go long on SPY at some point (one position in the portfolio) then would I be breaking that hedging rule?
Are there any rules about number of symbols you need to trade? On the one hand I could draw up a list of 20-30 securities from S&P 500 and trade those securities instead of SPY but isn't trading SPY ETF similar to trading a basket of 500 stocks that it represents, so I would be more diversified in theory trading ETF SPY than a bunch of securities that comprise S&P500. Could someone with knowledge of the contest rules please explain whether my algo will get filtered for not meeting some contest rule.