Objective: For holdings managed in this model to generate greater capital growth than the S&P 500 in bull markets and generate the same growth as the S&P 500 moves down in bear markets.

Strategy At-a-Glance

Generate capital growth greater than the S&P 500

Use strong up-trending stocks in Bull markets

Use inverse ETF's in Bear markets

How It Is Done

This strategy looks for high momentum stocks with growth potential

Aggressive in both bull/bear markets, go to cash in transition

Drawdown potential is estimated to be less than 8%
How do we minimize risk

Risk of loss is mitigated through the use of stop losses

Stops are determinedby quantitative analysis of a holding's volatility, level of unrealized gains, and trends of major indexes and the holding

 

The TQA model is a data-driven strategy that is aggressive in both bull and bear markets. This strategy has a move-to-cash option in transition markets, and a focus on non-leveraged index inverse ETFs in bear markets​

  • Relies on historical data, not forecasts or guesses

  • In Bull markets

    • Investment goal is to be fully invested in up to 30 strongly up-trending stocks, with capital allocation of 3.3% per holding​

  • In Transition markets​

    • Holds more cash

    • Will not buy bull-trending equities or bull-trending inverse ETFs

  • In Bear markets​

    • Investment goal is to be fully invested in up to 4 index inverse (1x) ETFs, with capital allocation not pre-determined, but fluctuating with more capital invested in stronger trending indexes

  • Not limited by sector/industry diversification; does not attempt to balance capital allocation, aka holds more equities in same sector/industry if it is outperforming the market​

  • Focuses on holding equities with strongest fundamentals that produce strongest up-trending price growth