Momentum Trend Portfolio Model (MOTR)
Overview
Global Capital Markets have evolved into highly complex and layered systems that can be confusing and concentrated. As a result, institutional investment strategies and funds have also added layers of processes that contribute to an overwhelming saturation of ideas. In my view, this has led to a situation where only “Mega Cap” Multi-Strategy funds are thriving, all engaging in the same trades. Meanwhile, a significant portion of the investment community and hedge funds are grappling with underperforming strategies, increased capital costs, heightened investor expectations, and a rising risk-free rate. As both a Chartered Market Technician (CMT) and seasoned trader, I advocate for simplicity in investment approaches. The ICAP MOTR Process exemplifies this philosophy by maximizing profitability through streamlined inputs and minimizing complications. In essence, it stands out for its efficiency and effectiveness in today’s challenging market landscape.
The ICAP MOTR Process
The ICAP MOTR Process is a technical/rule based, top-down system. 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 and exposure are based on both notional and volatility considerations.
Investment Universe: The ICAP MOTR Process analyzes three asset classes on a top-down basis and then takes on exposure accordingly. The asset classes & tradeables are as follows:
- Macro Equity
- S&P 500 Index (E-mini S&P 500 Index Futures)
- Russell 2000 Index (E-mini Russell 2000 Index Futures)
- Commodity
- Gold (CMX Gold Futures)
- Crude Oil (NYM Crude Oil Futures)
- Volatility (CBOE Volatility Index Futures)
- US Equity Sector Specific
- Industrials (Select Sector SPDR Funds – XLI)
- Utilities (Select Sector SPDR Funds – XLU)
- Energy (Select Sector SPDR Funds – XLE, XOP, OIH, MLPX)
- Basic Materials (Select Sector SPDR Funds – XLB)
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, directionally agnostic returns.
