Objective: The TQA investment strategy is aggressive in both bull and bear market cycles and has the option to move completely to cash in transition markets. In bear markets, the strategy will focus on non-leveraged index inverse ETFs.
Generate capital gains by holding strong up-trending stocks in Bull markets
Holdings exhibit high growth potential and a strong Bullish pricing trend
How it is Done
In TQA we are looking for high momentum stocks with growth potential.
We are aggressive in both Bull and Bear markets, and go to cash in transition markets.
How we Minimize Risk
We use stop losses to keep risk minimal.
Stops are determined by a quantitative analysis of each holding’s volatility, level of unrealized gains and trend of the major indexes and the holding.
Above all else, the model is data-driven. It relies on historical data and not forecasts or guesses or future estimates of market conditions.
The model is designed to hold strong, up-trending stocks that have above market pricing trends in bull markets; hold more cash in transition markets; and, hold major index inverse (2x) ETFs in bear markets.
The model is not limited by sector or industry diversification. This means the model does not attempt to balance allocation of capital across all 11 sectors or the hundreds of industry classifications. The result is the model tends to hold more equities of the same sector or industry if that sector or industry is outperforming the market.
The model does not compare value to growth, within equity selection. The model focuses on holding equities with the strongest fundamentals that are producing the strongest up-trending pricing growth.
In bull-trending markets, the model's investment goal is to be fully invested in up to 30 fundamentally strong, strongly up-trending stocks, with a capital allocation of 3.3% in each holding.
In Neutral markets, the model will not be buying any bull-trending equities and will not be buying any bull-trending inverse ETFs.
In bear-trending markets, the model's investment goal is to be fully invested in up to 4 index (S&P 500, Nasdaq, Russell 2000 and DJIA) inverse (2x) ETFs. Allocation of capital among the 4 indexes is not pre-determined, but will fluctuate with more capital invested in the stronger trending indexes.