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Strategy Overview
Seasonality M/W is a long only trading system which trades shares of highly liquid, blue-chip stocks that have seasonal influences.
The system holds each asset for ~5 months of each year and is fit for account sizes above $10,000.
Systematic risk is more evident on this strategy than some others. Since the holding time can be >1 month; traders can be exposed to severe market downdraws. However, systematic risk is not unique to this system and is a major consideration for all long term systems.
Seasonality M/W avoids this risk by having a very low exposure to the market; typically only trading 1/2 of the year.
The system does not come with an automated diversification system. Therefore, it is up to the user to deploy the system onto a basket of uncorrelated assets in order to reduce idiosyncratic risk. We do all the research for this and provide assistance in the premium trading room.
Overall, this strategy is considered below average risk due to the low exposure and reduced downdraw as opposed to buy-and-hold. With further portfolio diversification, the strategy can be harnessed to compose a powerful portfolio timing and asset class rotation tool.
Last modified 6mo ago