Understanding Equity Curve Performance and Setting Realistic Expectation (Premium)

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There are two offerings at TrendInvestorPro:

SystemTrader offers quantified strategies, signal pages and strategy articles.

ChartTrader offers reports and videos with market analysis and trading setups.

Do Overbought Filters Improve Performance for Momentum Rotation Strategies? (Premium)

Buying stocks that seem overbought is difficult, but this is often required when trading a momentum-rotation strategy. By design, these strategies buy the strongest stocks and many seem “overbought”. Momentum is all about buying high and selling higher. This report will test the original Rotation Investor strategies with the addition of an overbought filter. In other words, we will avoid stocks that are overbought. Does this filter help or hurt performance?

Do Overbought Filters Improve Performance for Momentum Rotation Strategies? (Premium) Read More »

Rotation Investor or Rotation Trader? Comparing and Contrasting (Premium)

This report explains the difference between the Rotation Trader strategies and the Rotation Investor Strategies. Key difference include: market timing models, trend indicators, rank indicators, positions, holding times and profit factors. In short, RO-Trader trades more often, has short holding periods and generates smaller average profits. RO-Investor trades less often, has longer holding periods and generates larger average profits.

Rotation Investor or Rotation Trader? Comparing and Contrasting (Premium) Read More »

SystemTrader – How to Start Trading a Strategy – Good Times and Bad (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 – Diversification Benefits – Recency Bias – Dealing with Drawdowns – Tweaks (Premium)

The Dual Momentum Rotation Strategies started out with a bang this year and produced big gains in the first three months. Market action then turned mixed with tech-related stocks falling sharply. The Nasdaq 100 strategy moved into a deep drawdown the last five weeks (NDX update here). The S&P 500 strategy is holding up well because

SystemTrader – Diversification Benefits – Recency Bias – Dealing with Drawdowns – Tweaks (Premium) Read More »

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 »

Breadth Charts and ChartList – Get an Edge with Inside Information

Breadth indicators are also referred to as market internals. As the “vital signs” for an index or sector, breadth indicators reflect aggregate performance for the individual components. As such, breadth indicators can provide leading signals by strengthening before a bottom or weakening ahead of a top. After all, the whole is only as good as the sum of the parts

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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 »

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.

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

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,

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

Why Use Market Filters?, Indicator Settings Are Double-Edged Swords, the Best Performing Market Filter (Premium)

Today’s report will dive into the market filter, which is used to define bull and bear markets. Market filters are an important part of trend-following and momentum strategies that trade stocks and stock-based ETFs. The Composite Breadth Model has not worked well over the last 15 months, but this is a relatively short timeframe in the grand scheme

Why Use Market Filters?, Indicator Settings Are Double-Edged Swords, the Best Performing Market Filter (Premium) Read More »

Market/ETF Video – CBM Turns Negative, Yields Spreads Widen, Bonds Rise as Safe Haven Trade, Tech ETFs Show Relative Strength, but… (Premium)

The weight of the evidence is bearish for stocks. The Composite Breadth Model turned negative on Monday, yield spreads widened significantly over the past week and SPY broke wedge support. Risk for stocks and stock-based ETFs is above average right

Market/ETF Video – CBM Turns Negative, Yields Spreads Widen, Bonds Rise as Safe Haven Trade, Tech ETFs Show Relative Strength, but… (Premium) Read More »

Market/ETF Video – SPY Tests Breakout, TLT Firms After Testimony, Tech ETFs in Pullback Mode, Small-caps and Retail Lagging (Premium)

Stocks fell sharply on Tuesday as the market reacted to testimony from Fed Chairman Powell. The Dollar surged and gold fell, but the 20+ Yr Treasury Bond ETF actually advanced on the day. Based on

Market/ETF Video – SPY Tests Breakout, TLT Firms After Testimony, Tech ETFs in Pullback Mode, Small-caps and Retail Lagging (Premium) Read More »

Market and ETF Report – SPY Surges off 200-day, Short-term Breakouts Trigger, Small-caps, Retail and Region Banks Lag (Premium)

The S&P 500 SPDR (SPY) fell back to its 200-day SMA in February and then surged with a sharp advance the last few days. This advance triggered breakouts in several ETFs that were featured in last week’s report and video. Today’s report will update these charts and set the

Market and ETF Report – SPY Surges off 200-day, Short-term Breakouts Trigger, Small-caps, Retail and Region Banks Lag (Premium) Read More »

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