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 and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment 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 are provided by Covestor, and are intended to serve as a general guide.
Transactions that are marked as "Replicable" 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 investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.