System Trader

SystemTrader – Planning for Good Times and Bad – Risk vs Reward – Positions vs Cutoff (Premium)

Everyone has a trading plan until they go into drawdown. The Dual Momentum Rotation Strategies are off to a great start here in 2024. This is the easy part. Don’t forget that RISK is always lurking in the equity markets and this is something we must always take into account. There is no reward without risk.

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SystemTrader – Testing the Zweig Breadth Thrust using other Indexes – Adding Beta and Diversification to the Strategy (Premium)

Today’s report will put the Zweig Breadth Thrust indicators for the various indexes to the test. My default breadth index is the S&P 1500 because it covers all bases and represents a broad swath of the US stock market. We can also generate ZBT signals using

SystemTrader – Testing the Zweig Breadth Thrust using other Indexes – Adding Beta and Diversification to the Strategy (Premium) Read More »

SystemTrader – Zweig Breadth Thrust is Missing Something – Adding Nasdaq Stocks, Testing with an Exit Strategy (Parts 1&2 – Premium)

Today’s report features the Zweig Breadth Thrust, which was developed by the late, and great, Marty Zweig. We will show how it works and look at some recent signals. Despite a long history, the indicator is missing something and we will propose a modern day alternative.

SystemTrader – Zweig Breadth Thrust is Missing Something – Adding Nasdaq Stocks, Testing with an Exit Strategy (Parts 1&2 – Premium) Read More »

SystemTrader – Skip the Noise, Focus on the Signal, Effectively Use the 200-day SMA with $SPX & $NDX (Parts 1&2 – Premium)

The S&P 500 is battling the 200-day SMA with four crosses over the last eleven days. We are also seeing a rise in volatility as this market benchmark plunged 5.86% in nine days (18-27 October) and then surged 5.85% the last five days. With such conditions, it is a good time to step back and look for ways to filter the noise.

SystemTrader – Skip the Noise, Focus on the Signal, Effectively Use the 200-day SMA with $SPX & $NDX (Parts 1&2 – Premium) Read More »

System Trader – CBM Turns Negative, Stock Strategies Affected, Market Timing Mechanisms Improve Long-term Performance (Premium)

The Composite Breadth Model (CBM) turned negative on Monday (-1) and the weight of the evidence is now bearish for stocks. This development means risk in stocks is above average. Strategies that trade stocks and stock-based ETFs perform poorly when risk is above average

System Trader – CBM Turns Negative, Stock Strategies Affected, Market Timing Mechanisms Improve Long-term Performance (Premium) Read More »

ETF-Strategy: Trend Momentum Profit Target Strategy and Signal Table for Stock-Based ETFs (Premium)

This articles covers the indicators and signals for a trend-momentum strategy to trade stock-based ETFs. The Composite Breadth Model defines market conditions. The Trend Composite and eSlope120 are used for trend identification, and Normalized ROC delivers the momentum rank. We show performance metrics for this strategy and provide a signal table.

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Stock-Strategy: Trend Momentum Profit Target Strategy for Russell 1000 Stocks (Premium)

We are making progress. After a big hiccup on Thursday, I reworked the strategy and will cover the basics in this article. Here are some of the changes. First, the strategy trades stocks in the Russell 1000 to capture more beta. Second, I tightened the volatility filter by requiring the standard deviation to be below 50%. Third, I added price,

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Stocks vs ETFs – Drawdowns in ETF Strategies are Changing the Dynamic because Risk is not Properly Rewarded (Premium)

ETFs give traders a chance to trade baskets of stocks and spread the risk. This sounds like a positive, but ETF strategies suffered disproportionately in 2022 and 2023 is starting out the same. We should be rewarded for risk and the reward should

Stocks vs ETFs – Drawdowns in ETF Strategies are Changing the Dynamic because Risk is not Properly Rewarded (Premium) Read More »

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