Introducing Lamorak

A quantitative strategy for trading individual stocks

No one should have to navigate the markets alone

Named after one of King Arthur’s greatest Knights of the Round Table, Lamorak has been trained to take on the markets with ease and grace. 

Allow Lamorak, a quantitative strategy developed by the Trade Risk, to guide you through the chaos of markets and help you profitably trade large cap liquid stocks.

(see Performance Disclosures: Equity Curve)

Transparent performance. Real results.

We've got performance dating back to 2006 for our Lamorak trading strategy for you to analyze. Our model Lamorak portfolio uses margin, up to 150% invested (50% margin), for both long and short signals. 

As a subscriber, you'll receive easy to follow position sizing rules used to generate these returns, but you're encouraged to adjust those settings to fit your own risk tolerance and objectives.

Here are the backtested performance results compared to a 60/40 stocks/bonds benchmark portfolio.

MEASUREMENTLamorak Portfolio60/40 Stocks/Bonds Portfolio
CAGR+20.54%+7.39%
Top 3 Drawdowns-22.11%, -17.97%, -12.89%-32.57%, -22.70%, -11.89%
Sharpe1.610.69
MAR0.920.23
Trades Taken4,759N/A
Correlation0.17Benchmark

(see Performance Disclosures: Portfolio Statistics)

Profit during sideways and volatile markets

Lamorak is unlike most trading strategies because it doesn't need strong healthy uptrends to make money. This is a tactical swing trading system that does best during sideways markets and high volatility. 

It doesn't hold onto trades for very long and it picks its spots carefully. And for those reasons, it's able to achieve superior risk-adjusted returns, often during the most difficult environments. 

The following table shows backtested returns, followed by live returns, starting in October 2020. Click on any of the links in the table below to read our performance letter from that month.

 JanFebMarAprMayJunJulAugSepOctNovDecYTD
2020-1.15%-9.30%+12.48%-3.72%+6.75%+4.59%+2.64%+3.44%7.99%+2.21%+25.93%
2019-1.45%+1.91%+3.25%+0.80%-0.27%+5.14%+4.13%-1.46%+2.23%+0.31%+0.44%+5.47%+20.50%
2018+6.28%-5.37%+0.09%+2.23%+3.23%-0.19%+0.28%+3.52%+2.97%+2.45%-4.86%+1.07%+11.70%
2017+3.45%+0.78%+1.61%+3.97%-0.51%+1.96%+1.56%+2.32%-2.78%+4.02%+2.90%+1.13%+20.42%
2016-2.55%+4.09%+0.72%-0.18%+0.66%+2.91%+1.12%+0.54%+4.67%-5.47%-3.75%+0.14%+2.91%
2015+3.93%+3.20%+2.47%-1.00%+5.31%+1.12%+4.02%+2.69%-1.20%-1.88%-0.64%+1.91%+19.92%
2014-1.03%+1.67%-1.43%+4.78%+1.94%+3.93%-4.81%+3.63%-0.33%-5.86%+3.15%+3.78%+9.42%
2013+2.37%+0.96%+1.72%+4.38%-1.34%+4.18%+1.73%-1.32%+1.78%+1.51%+4.20%-1.08%+19.09%
2012-0.53%+2.18%+1.45%+2.69%-0.50%+9.89%+6.23%+1.77%+0.81%+8.18%+0.11%+1.16%+33.43%
2011+5.43%+2.25%+1.98%+1.99%+4.94%-0.51%+3.52%-7.70%+5.23%+2.58%+1.18%+2.58%+23.48%
2010-3.00%+7.10%+4.10%+4.95%+4.88%-8.31%+6.06%+2.08%+2.03%+1.99%+4.55%-0.43%+26.02%
2009+2.15%-1.66%-2.12%+2.22%+2.92%+1.51%-2.56%+4.43%+0.09%-7.11%+9.31%+1.47%+10.64%
2008-7.07%+5.31%+1.14%-0.84%+9.87%+2.05%+2.71%+5.28%+1.98%-4.29%+2.54%+0.76%+19.46%
2007+3.04%-0.13%+0.48%+1.93%+4.78%+1.93%-5.90%+8.25%+0.05%+2.92%+1.67%+7.03%+26.04%
2006+3.32%+0.76%+3.69%+1.89%-6.05%+0.31%-2.04%+8.51%+2.42%+4.23%+2.32%+0.65%+20.01%

(see Performance Disclosures: Monthly Performance)

How Lamorak works

Lamorak is a long/short algorithm that takes advantage of volatility when stocks have moved too far and too fast in one direction. It trades large cap liquid stocks in the Nasdaq 100 and S&P100 indices. All signals are generated using daily closing prices.

That means no intraday screen watching is required and all orders can be placed after the market closes. 

Trade confidently with a systematic, evidence-based strategy

Lamorak is based on the time-tested, academically approved factor of mean reversion, and its execution refined from over a decade of bar-by-bar price action analysis and live trading by Evan Medeiros.

The strategy has been backtested and validated across thousands of individual stocks with careful considerations not to data mine or overfit.

(see Performance Disclosures: Portfolio Statistics)

Trade Statistics

Percent of trades profitable:

65.29%

Average winning trade:

+2.30%

Average losing trade:

-2.82%

Average hold time:

4 days

Lamorak - Lamorak Members Page

Become a Lamorak trader

When you subscribe to the Lamorak membership, you'll receive daily trade reports with all of the information and signals you need to trade the strategy with ease.

You'll also unlock several member-only pages that'll help you make better and faster investing decisions:

  • Private portfolio and trade signals page
  • Private education page to learn more about the strategy
  • Private trade reports published daily

About Evan Medeiros

  • Founder of the Trade Risk and creator of Merlin & Lamorak
  • Coder for 20+ years and active trader for 10+ years
  • B.S. Computer Science, University of Massachusetts Boston
  • Frequent speaker at meetup groups and conferences, including TradersExpo, MoneyShow, Stocktoberfest, and more
  • 100,000 followers across social networks
Swing Trade Alerts Picture of Evan

Frequently Asked Questions

What is a quantitative strategy? What are the benefits?

A quantitative strategy means all of the buy and sell decisions are based strictly on mathematical computations and probabilities. There’s no gut feel or subjective analysis — the system contains all of the rules to make the best decisions possible.

There are many benefits of quantitative strategies:

  • 100% discipline, the system always executes flawlessly
  • No emotional biases
  • The strategy has been tested and verified over past market environments
  • The strategy is easily measurable and can be enhanced over time

What makes Lamorak extra special is that it was built by a trader first. Evan’s market observations and live trading for over a decade are at the core of Lamorak's decision-making process. That means Lamorak is not just applying random and impossible to explain mathematical theory. Instead, it’s a simple system based on how markets really work.

How do I interpret the performance measurements above?

We pride ourselves on transparency and we want to be sure you have all of the information possible to properly evaluate the Lamorak trading system. This is why we give a detailed view of performance measurements so you can make an informed decision about the strategy. 

Some of these terms get pretty complicated with in-depth equations, which is why we created a Trading System Performance Metrics glossary to share all of the details behind everything like: Sharpe Ratio, MAR, Correlations, etc. If you're confused about anything you see in the table above, or if you simply just want to learn, head on over to the glossary

How many trades can we expect a week?

Lamorak has averaged about 5 to 6 trades per week over the past decade, however, the actual distribution of trades tends to be much lumpier. Instead of consistently making 6 trades a week, the strategy tends to see busy weeks followed by quieter weeks.

During busy weeks you might get 15 or more trade signals and then what follows is a week or two of quiet activity until the next pocket of opportunity emerges.  Of course, Lamorak's activity is largely dictated by the overall market environment, so the more volatile things are, the more likely Lamorak is going to be active.

What is your refund and cancellation policy?

At times, we'll offer 14-day free trials to our trading systems so you can take them for a test drive to make sure they live up to your expectations. If you are not satisfied for any reason, cancel before the 14th day and you won't be billed a dime.

Once your trial period has ended, or if you subscribe to a membership that does not start with a free trial, all sales are final. To view our full refund and cancellation policy, click here

Experience what a professional trading strategy can do for you. Start your membership today!

Monthly Membership

$ 109 / per month
  • Long and short signals
  • Member-only pages
  • Daily trade reports
  •  

Annual Membership

$ 1,090 / per year
  • Long and short signals
  • Member-only pages
  • Daily trade reports
  • Save $218 dollars choosing annual

What early access subscribers are saying

"I have tried other services like the Trade Risk's in the recent past and none comes close.

I love the Lamorak program and how it's combined with Merlin to increase profits. The long and short system is well-organized, giving me plenty of time to prepare for its recommendations, and has excellent picks. I've made monies from TR's system and I have only used it in full for about 1-1.5 months.

And, of course, excellent customer service! Anytime I have a question, either Evan or someone from his team will reply quickly."

Kiriakos M.

Merlin Strategy - Merlin X Lamorak

Get the power of Merlin and Lamorak with our exclusive All Access pass.

The real power of these trading systems is unleashed when they are paired together. Because Lamorak and Merlin approach the markets in completely different ways, they do a fantastic job at maximizing your return potential.

General Disclaimer: Please be advised that trade signals are provided as an educational tool for informational purposes only and do not constitute investment advice. Signals, trading tools, and all published analysis should always be used as a starting point for doing additional independent research so that you can form your own opinion regarding investments. Under no circumstances should trade alerts be treated as financial advice.