Data-Driven Strategies and Next Level 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 timing the S&P 500
- NDX centric breadth model for timing the Nasdaq 100
- 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
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.
Market Model Performance
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).
Using SPY as the trading vehicle, the Composite Breadth Model was invested 74% of the time since 2003. It generated a Compound Annual Return of 8% and produced the lowest Average Drawdown. This means it did a good job of preserving capital during bear markets. Also note that there were fewer trades than the 5/200 SMA cross and a higher Win Rate. The Composite Breadth Model will keep you on the right side of the market.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.