The model makes monthly rotations around the calendar effect date (five trading days before the end of the month) and can have anywhere from 0-7 position changes with 1-3 being typical. Each position could hit a stop or multiple targets throughout the month.
The Large Cap Leaders model is a quantitative strategy that MarketGauge developed that combines the concept of trend strength, momentum, and ranking.
The model ranks the S&P 500 components (large market capitalization stocks) based on a combination of trend and momentum indicators including MarketGauge’s proprietary Trend Strength Indicator (TSI) and rotates monthly into the seven leading stocks with additional filters to ensure the model is not over-concentrated in any given sector. All positions are managed with stops and targets.
The portfolio tends to stay continually invested as long as there are sufficient stocks with positive trend strength. On average, the portfolio is around 80%+ invested and can vary based on each position hitting stops or targets or other market conditions.
Trades only large-capitalization and highly liquid S&P 500 stocks. Average hold time is longer than a month.
Balanced to Adventurous