Swing trading strategy that owns or shorts stocks that are more volatile than the S&P 500. My rules-based system seeks to reduce drawdowns and beat the benchmark index with lower volatility. My goal is to find stocks within strong trends that are moving sideways in the near term, and buy or short the ones that I think are likely to resume their moves.
The approach begins with a rigorous top-down markets analysis. I seek to gauge the direction of the overall market and to identify possible short-term market themes.
Next, I look for specific asset classes, sectors, and stocks that my research suggests are likely to benefit from those themes.
I then apply my own approach that seeks to maximize reward and minimize risk by using targeted, rules-based stock entries and exits.
My proprietary momentum scanner helps me to identify potential outperforming stocks from a universe of more than 3,000 names.
From that list I create a watchlist of about 100 individual stocks. For each, I monitor technical indicators, analyst recommendations, news and commentary.
My goal is to identify stocks with extremely bullish or bearish sentiment. I seek to take short-term trading positions that are opposite of the crowd.
Under my trading rules, no single position -- long or short -- is expected to put more than 1% of the strategy’s total capital at risk.
I typically hold 5 to 15 positions and seek to maintain some diversification across sectors. Positions are usually held for a period of two days to two months.
My typical trading scenario offers at least double the potential reward, relative to the potential risk, if my price objective for the stock is met.
Soft stops are used on all positions in an effort to prevent major drawdowns. I also will sell when a stock has reached its price objective based on my analysis of price patterns.
I tend to avoid microcaps, biotechs, and stocks that I believe may be vulnerable to external events that may cause sudden, dramatic price moves.
Past performance is no guarantee of future results.
Performance of the portfolio manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More
Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying portfolio. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More
All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.
These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.
This portfolio was launched on Covestor on March 23, 2009. Trading history prior to launch was audited by Covestor and is consistent with current portfolio strategy. Manager performance incorporates this historical data. This data has not been audited by an independent firm.