Feb 15, 2021
in Backtest, Mean Reversion, Video, Sequential RS
Note: during the launch of our new application called Sequential Relative Strength, we are allowing all accounts to create portfolios using individual stocks. This app module is able to expand on the core Portfolio Relative Strength and add a 2nd stage to help improve entry points.
Reviewing some recent actual trading from the lens of some of our backtesting applications. This has been a very good market environment for ETF rotation. #STUDY
to expand video on screen, click the '4 expanding arrows' icon in the bottom right corner of the video screen. Use the settings icon to change to 1080 quality if it seems at all blurry
Jan 06, 2021
in Sequential RS
Relative strength is for segments of the market -- it is not for Growth Stocks or Tech ETFs only, it works for all sorts of things. Below are some value ETF ideas. We have found mixing something like Growth or Value with CORE etfs as well will keep it more mainstream. Up to the user to decide how much deviation from the market indexes they are comfortable with -- below is a starter idea. Note that while many may not equate IBB with value, its simply a fact that the large biotech stocks that are in IBB are also in the value indexes and therefore its more of a 'biotech-pharma' value ETF.
Dec 14, 2020
in Screener, Sequential RS
We have added a new tool for subscribers, the Sequential Screener, to compliment the Sequential Relative Strength backtest.
Sequential Relative Strength seeks to identify short-term weakness within a strong longer-term up trend by employing a two stage process. The Sequential Screener displays the rankings and composition of both the first and second stages on any trading date. The side-by-side layout makes it much easier to assess the current situation than the regular screener and can be helpful in anticipating changes in the run up to a rotation.
Nov 05, 2020
in Sequential RS
Sequential Relative Strength Is Powerful. Rather than always have the same list to go through, it automatically ranks a list and then only uses that sublist to choose from in a 2nd ranking... Keep in mind that over past few years you have still 'lost' money nearly 40% of the time -- so don't think that this is super easy to actually execute. It never seems like that... But keep working at finding good lists and making good entries and over time you will outperform and if you outperform an index that does well, you can do really well.
Oct 14, 2020
in Regime Change
This model is simple yet addresses an important issue for those that want to compete against a benchmark.
In order to compete against a specific benchmark, it makes sense to understand that benchmark. If you totally ignore it, you can do great but at times you will probably get frustrated because your strategy is totally out of sync.
So take the example of a logical model of S&P Equal Weight vs NASDAQ Equal Weight. This is a pretty good indicator but at the same time, the S&P Equal Weight is wildly different portfolio than the weighted S&P because of the fact that market weight S&P is strongly skewed to the big, very profitable money-making S&P names (AAPL, AMZN, MSFT etc).
This backtest addresses that by using our Regime model. It still uses S&P EW vs NASDAQ EW as its indicator -- but then when it comes to actually buying and selling, it uses market cap weighted QQQ and market cap weighted OEF (S&P 100).
Take a look;
