Merlyn.AI SNUG
Tactical Risk Mitigation Index
Methodology
The Merlyn.AI SNUG Tactical Risk Mitigation Index employs six underlying strategies that use a rules-based tactical momentum algorithm to evaluate a set of candidate ETFs at each month-end. The trend leader of each become a member of the model’s Portfolio for the subsequent month. Candidate ETFs include equity and defensive ETFs.
Construction
Selections are made from a universe of over 60 ETFs that include a wide range of bond and Treasury categories, gold, and the S&P 500 index. A simple 60/40 portfolio forms the model’s backbone, which is challenged for momentum leadership by the defensive ETFs. It is further defended by an integrated Bear Market Strategy, triggered by StormGuard.
Application
This Portfolio is designed for the Conservative portions of an investment portfolio.
Note: Momentum is not always present in equity markets. Economic, bureaucratic, and social responses to inflation, politics, and pandemics can disrupt momentum in otherwise orderly markets that is required to achieve profitable trading.