Alpha Stocks
Dual Defense Portfolio
Methodology
Tactical Momentum Strategies. Each of the 11 underlying strategies uses a rules-based tactical momentum algorithm to evaluate a set of candidate ETFs at each month-end, wherein the trend leader of each is selected to be a member of the model’s Portfolio for the subsequent month. In Bear markets candidates are defensive ETFs vs equity ETFs.
Construction
The Stocks selections are made from a field of 121 of the largest cap stocks in each of the 11 economic sectors. The underlying strategies employ a momentum backstop having defensive funds that compete for momentum leadership with the 121 Stocks. The Strategy includes a defensive integrated Bear Market Strategy, triggered by StormGuard.
Application
This Portfolio is designed for the Growth 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.