Data-Driven Strategies and Next Level Analysis
A Subscription to TrendInvestorPro includes Chart Trader and System Trader
TrendInvestorPro System Trader
Data-driven Strategies and Signals that Beat the Market and Preserve Capital
A membership to System Trader includes:
- Full strategy reports with explanations and signal examples
- Nasdaq 100 Momentum-Rotation Strategy (weekly signals)
- S&P 500 Momentum-Rotation Strategy (weekly signals)
- Russell 1000 Mean-Reversion Strategy (daily signals)
- A market timing strategy using a proprietary breadth model
Scroll further for more details on System Trader.
Trading and investing involves risk.
Past performance does not guarantee future performance.
System Trader offers rules-based trading strategies for stocks. These quantified strategies delivered double-digit returns in historical testing. Not only did these strategies significantly outperform buy-and-hold, but they did so with lower drawdowns.
The image below shows some basic performance metrics for these strategies from January 2007 until July 2023. The Compound Annual Returns were in the 13-15 range and the Maximum Drawdowns were in the 15 to 23 percent range. Drawdowns are unavoidable because there is no reward without risk.
The next images show the equity curves for these strategies (green lines). The blue lines show the equity curves for S&P 500 buy-and-hold. Notice that the strategy equity curves are consistently above the equity curves for buy-and-hold. The images show the Compound Annual Return in the upper left. We also show the five largest drawdowns and highlight these with the red arrows. Do not ignore drawdowns because they are part of the process.
A membership to System Trader includes the Composite Breadth Model (CBM) for market timing. The CBM identifies bull and bear markets by aggregating signals in 14 breadth indicators. CBM signals outperformed buy-and-hold with significantly lower drawdowns. The average drawdown for the CBM signals was -14.54%, while the average drawdown for S&P 500 buy-and-hold was more than double (30%).
