Momentum Trend Portfolio Model (MOTR)
Overview
Global Capital Markets have become massively complicated and layered to a point of confusion. With that, institutional investment strategies and funds have also layered their processes to a point of saturated thought and overlay. The result, in my opinion, is that only “Mega Cap” Multi-Strat funds are winning. The larger balance of the investing community and hedge funds are struggling with overly complicated strategies, a higher cost of capital, higher investor expectations and a higher risk-free rate. As both a Chartered Market Technician (CMT) and experienced trader I believe that, all else equal, simpler is better. That said, my process (MOTR) maximizes profitability with limited inputs and complications. In short, it is efficient and effective.
The Process
The MOTR Process is a technical, top-down process. It is based on a specific combination of and relationship between both Momentum and Trend Indicators. Exposure is long/short but not necessarily market neutral. The process is scalable, repeatable and can be executed on multiple time periods. Position sizing/exposure is based on both notional and volatility considerations.
- Top-Down Process & Tradeables: The process analyzes three signals on a top-down basis and then takes on exposure accordingly. The signals & tradeables are as follows:
- Macro – S&P 500 (SPY and/or E-mini contracts)
- Sector – Select Sector SPDR Funds (all 11 US Sectors)
- Individual Equities – All Select Sector SPDR Funds members (US Equities only)
- Exposure (Long / Short): Exposure is determined by whether the process signals suggest price trend continuation or reversal.
- Position Sizing: Position sizing will be determined by both notional exposure and asset volatility. The portfolio will be both notionally and volatility weighted to better manage risk and maximize returns.
- Periodicity: The process can be run on an Intraday, Daily, Weekly and Monthly basis.
The Opportunity
This process is rule based, efficient, effective, balanced and proven. With over 25 years of experience successfully navigating capital markets I have the unique ability to identify and realize opportunities in real time. Consistent, rule based, low volatility and directionally agnostic returns.
