Systematic Trading Strategies and Next Level Trading Setups
Rotation trading strategies capture the power of momentum by rotating into the strongest stocks and out of stocks that are losing upward momentum. This report explains rotation strategy that trades S&P 500 stocks (RO-Investor-SPX). We cover the trend filter, volatility
The table below shows performance metrics for the S&P 500 Rotation Investor Strategy (RO-Investor-SPX) and $SPX buy-and-hold. The strategy outperformed buy-and-hold with a significantly higher Compound Annual Return (CAR): +13.39% vs +7.76% (blue shading). Just as important, the strategy’s Maximum
Rotation trading strategies capture the power of momentum by rotating into the strongest stocks and out of stocks that are losing upward momentum. This report explains rotation strategy that trades Nasdaq 100 stocks (RO-Investor-NDX). We cover the trend indicator, volatility
The table below shows performance metrics for the Rotation Investor Nasdaq 100 Strategy (RO-Investor-NDX) and $NDX buy-and-hold. The strategy handily outperforms buy-and-hold (+18.03% vs +12.97%), and the strategy’s Maximum Drawdown (-21.52%) was less than half that of buy-and-hold
RO-Investor-ETF is momentum rotation strategy that trades an all-weather ETF universe in bull markets and bear markets. This strategy starts with a breadth model for stock market timing. The strategy favors equity ETFs in bull markets, and bond ETFs in
The table below shows performance metrics for the Rotation Investor ETF Strategy (RO-Investor-ETF) and $SPX buy-and-hold. The strategy handily outperforms buy-and-hold (+12.73% vs 7.71%), and the strategy’s Maximum Drawdown (-21.71%) is less than half that of buy-and-hold (-56.40%). The Average
The report explains the All Weather ETF strategy using the Trend Composite to find uptrends and StochClose to rank performance. Using the Composite Breadth Model to time the stock market, this strategy focuses on stock-based ETFs during bull markets and
Updated at the end of every week (usually Saturday mornings), this page shows charts and current signals for the Broad Breadth Model (BBM). The model uses an array of breadth indicators from various indexes for a weight of the evidence approach to assess conditions for the broader stock market (large-caps, mid-caps, small-caps). Stock market conditions are favorable when this model is bullish (positive) and unfavorable when the model is bearish (negative).
The broad market environment is vitally important to strategies that trade stocks or equity ETFs. Bull and bear markets, however, are not just defined by the trend for the major indexes, such as the S&P 500. Instead, we must look within the indexes and use breadth indicators to quantify the environment for the majority stocks. We are trading individual stocks and equity ETFs, not the indexes. Analyze accordingly.
SPY and QQQ crossed above their 200-day SMAs with big moves on Monday, and held above these long-term moving averages the entire week. In addition, the 5-day SMA moved above the 200-day SMA to reverse the bearish trend signal from mid March. The V-Reversal since late March was extraordinary and SPY seems short-term overbought, but the 5/200 day SMA cross is a bullish signal
Besides the Zweig Breadth Thrust, chartists can identify bullish thrusts using short-term breadth indicators, such as the percentage of stocks above their 20 and 50 day SMAs (simple moving averages). Breadth thrust signals reflect a sharp turnaround in participation that can foreshadow an extended uptrend. Thrust signals start with a setup that shows very few stocks
Stocks plunged into early April and surged into early May, suggesting that a “V” reversal is in the making. There are two parts to the V reversal. First, there is the V, which is the plunge and the rebound. Second, there is the breakout move that completes the reversal. SPY fulfilled the V part, but