Systematic Strategies and Next Level Chart Analysis
System Trader
Super charge your portfolio by harnessing the momentum edge with System Trader. We combine market timing models, trend filters and momentum ranks to create portfolios that generate above-average returns with lower risk. Our systematic strategies start with breadth models to define market conditions for the S&P 500 and Nasdaq 100. We then use trend filters and proprietary momentum ranks to trade the leading stocks in each index. These strategies exit stocks when they no longer lead and rotate into the new leaders. There is always a horse in the race.
System Trader includes:
- Broad breadth model for stock market timing and risk assessment.
- Trend-Momentum Rotation Strategy trading S&P 500 stocks
- Trend-Momentum Rotation Strategy trading Nasdaq 100 stocks
- Ranking Tables for S&P 500 and Nasdaq 100 Stocks
- We post weekly strategy signals and updates every Saturday morning
Scroll further down to see performance metrics
Valuable resources included with every subscription!
Improving Performance for 200-day SMA Signals
SPY and QQQ crossed above their 200-day SMAs in May. These signals are bullish, but prone to whipsaws. We published a report showing how to reduce whipsaws and improve returns. We also offer a performance enhancing twist for QQQ.
V Reversals – Capitulation, Surge and Broadening
SPY forged a massive V-Reversal. Does this reversal have legs? What separates a bear market bounce from a bull market signal? We answer these questions and more with a comprehensive report and video.
Three Breadth Thrust Indicators (including Zweig)
A Zweig Breadth Thrust triggered on August 24th. This signal was widely reported, but without an exit strategy. We published a research report showing past signals and detailing an exit strategy.
These alone are worth the price of admission!
Trend-Momentum Strategy Performance
The image below shows performance metrics for the Trend-Momentum Strategies that trade S&P 500 and Nasdaq 100 stocks. Both strategies delivered solid double digit returns (>14% per year). In addition to higher returns, the drawdowns (risk) were much lower than buy-and-hold, which had an average drawdown of 30%. Note that past performance does not guarantee future performance.
Equity Curved in Steady Uptrend d
The next image shows the equity curve for the Dual Momentum Rotation Strategy that trades S&P 500 stocks. It shows steady growth and the ability to preserve cash during bear markets. Notice how the equity curve was flat when buy-and-hold experienced large drawdowns (2008, 2015, 2020, 2022). This strategy performed very well in 2024 as the equity curve surged to a new high.
Broad Market Timing
As the equity curve above confirms, broad market timing is key to any strategy. We need to preserve capital during bear markets and run with the bulls during bull markets. The Composite Breadth Model aggregates breadth indicator signals for a “weight of the evidence” approach to market timing. Conditions are bullish when this model is positive and bearish when negative. This model tells us when to be fully invested in our strategies (bull market) and when to move to the sidelines (bear market).
This information is issued solely for informational and educational purposes and does not constitute a recommendation to buy or sell securities. Past performance does not guarantee future performance. Users should consult their own financial or investment adviser before trading or acting upon any information provided. You, and only you, are responsible for your investment and trading decisions. For more details, please review our Disclaimer.