Q: Can you tell me more about how Lamorak trades?

Lamorak is a rules-based, long/short trading system designed to profit from mean reversion : stocks that have moved too far, too fast, and are primed for a short-term reversal. Here are the core characteristics of how Lamorak trades: Focus on liquid large caps: Signals come from stocks in the Nasdaq 100 and S&P 100 which are companies with deep liquidity and tight spreads. Counter-trend setups: Rather than chasing momentum, Lamorak looks for stretched moves where price has run quickly in one direction and is statistically likely to snap back. Both long and short trades: The system is comfortable betting on rebounds after sharp selloffs as well as fades after sharp rallies. Fast turnover: Trades are short in duration about 4 days on average . End-of-day signals: All decisions are made using daily price data after the market closes, giving you plenty of time to place orders without watching the market intraday. This counter-trend, mean reversion style may feel different from traditional “trend-following” approaches, but that’s part of Lamorak’s edge: it thrives in a wide range of market environments and doesn’t rely on bull markets to generate opportunities. For a deeper look, watch the trade examples in the video below.

Question 1

Can you tell me more about how Lamorak trades?

Accepted Answer

Lamorak is a rules-based, long/short trading system designed to profit from mean reversion: stocks that have moved too far, too fast, and are primed for a short-term reversal.

Here are the core characteristics of how Lamorak trades:

Focus on liquid large caps: Signals come from stocks in the Nasdaq 100 and S&P 100 which are companies with deep liquidity and tight spreads.
Counter-trend setups: Rather than chasing momentum, Lamorak looks for stretched moves where price has run quickly in one direction and is statistically likely to snap back.
Both long and short trades: The system is comfortable betting on rebounds after sharp selloffs as well as fades after sharp rallies.
Fast turnover: Trades are short in duration about 4 days on average.
End-of-day signals: All decisions are made using daily price data after the market closes, giving you plenty of time to place orders without watching the market intraday.

This counter-trend, mean reversion style may feel different from traditional “trend-following” approaches, but that’s part of Lamorak’s edge: it thrives in a wide range of market environments and doesn’t rely on bull markets to generate opportunities.

For a deeper look, watch the trade examples in the video below.

Question 2

I'm a discretionary trader; how can I best use Lamorak?

Accepted Answer

Lamorak is built to spot short-term turning points in the most liquid stocks on the market. These are the tactical inflection points that active traders care about and quick reversal setups where risk and reward can shift fast.

For discretionary traders, here’s what makes Lamorak especially useful:

Frequent opportunities: On average, Lamorak generates around 300 trades per year, so there’s nearly always something setting up, whether the market is bullish or bearish.
Fast-paced trading: With an average holding time of about 4 days, trades turn over quickly, keeping capital active and ideas flowing.
Complete transparency: Every signal comes with exact entries and exits, so you can follow precisely, adapt them to your own style, or just use them for inspiration.
High win rate focus: The system is designed to maintain a strong batting average, giving you a reliable foundation for your discretionary process.

Whether you want to mirror signals, cherry-pick trades that align with your style, or simply draw from Lamorak’s steady idea flow, the system is a ready-made source of fast, high-probability opportunities to keep your trading sharp.

Question 3

I'm a buy-and-hold or long-term investor; how would Lamorak help me?

Accepted Answer

Lamorak isn’t designed to replace a long-term, buy-and-hold portfolio — it’s meant to enhance it. Think of Lamorak as a satellite strategy that sits alongside your core holdings. For example, you might keep 80% of your capital in a traditional long-only portfolio, and allocate 20% to Lamorak to add diversification.

Here’s why Lamorak pairs well with buy-and-hold:

Diversification benefits: Lamorak’s returns are largely uncorrelated with the stock market, helping smooth out performance during difficult stretches.
Flexibility: With the ability to trade both long and short, Lamorak can capture opportunities regardless of market direction.
Low time commitment: All decisions are made at the close of the trading day, requiring only a few minutes of your time.

In practice, Lamorak can act as a hedge-fund-style diversifier — a way to complement your core portfolio, reduce reliance on bull markets, and create a steadier overall investment experience.

Question 4

Do I need to download any code or use a certain broker?

Accepted Answer

No, absolutely not.

We’re doing all of the heavy lifting and number crunching for you. Internally, we have the Galahad algorithm running in real-time, measuring and monitoring markets and systematically producing signals.

As a subscriber, all you need to do is log in to your Trade Risk dashboard each night to see what the trading system has generated for signals. You can follow along at your own pace and place orders with any broker of your choosing.

Question 5

What kind of portfolio returns can I expect if I follow every signal?

Accepted Answer

Lamorak isn’t designed as a traditional “total return” portfolio like our Galahad Trading System, which targets long-term S&P 500–style growth. Instead, Lamorak’s primary goals are:

To deliver uncorrelated returns that diversify your broader portfolio
To maintain a high win rate across trades
To create a smoother, more consistent trading experience with less reliance on market direction

That said, we know past performance is important when evaluating any strategy. Below you’ll find the actual portfolio returns of the default margin position sizing algorithm (which invests up to 150% at times). This is the same approach Evan uses in his own trading account.

Remember: your personal returns depend on the position size and risk level you choose for each trade. Want higher returns? You can increase risk per trade. Prefer smaller drawdowns? Dial the size back.

Click on any of the links in the table below to read our performance letter from that month.

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	YTD
2025	-0.22%	+2.06%	-3.70%	+2.37%	-0.59%	+1.46%	+0.80%						+2.06%
2024	+1.99%	+1.15%	+0.36%	+2.23%	+2.17%	+3.31%	+3.19%	-1.13%	+2.83%	+0.78%	+7.26%	-4.94%	+20.45%
2023	+0.26%	+1.06%	+2.99%	-1.16%	+0.12%	+8.67%	+0.58%	-0.77%	-5.64%	+1.23%	+1.01%	-0.14%	+7.91%
2022	-2.99%	+5.86%	-1.02%	-0.83%	+0.69%	+2.84%	-3.29%	-2.27%	-7.00%	-2.70%	+0.53%	+4.42%	-6.29%
2021	+0.32%	+3.02%	+9.58%	+3.10%	-1.54%	-5.70%	+8.62%	+2.74%	-5.19%	-0.19%	-8.00%	+4.47%	+10.04%
2020	-1.15%	-9.30%	+12.48%	-3.72%	+6.75%	+4.59%	+2.64%	+3.44%	+7.99%	+2.21%	-1.36%	+0.93%	+25.50%
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%

Question 6

What is a 100% rules-based system? What are the benefits?

Accepted Answer

A fully rules-based system means all buy and sell decisions are pre-determined based on extensive historical market testing. There’s no guesswork or subjective analysis — the system follows a clear set of rules to make the best decisions possible.

The benefits of fully rules-based trading include:

Decisions grounded in real research and market history
Flawless execution with 100% discipline
Freedom from emotional biases
Measurable performance with the ability to refine and improve over time

What makes our trading systems especially unique is that they were built by a trader first — not someone simply trying to code a good-looking backtest.

Evan’s 15+ years of live market experience and observations are embedded into every decision the system makes. That means you're not relying on random, black-box math — you're trading simple, intuitive systems rooted in how real markets actually behave.

Question 7

What is your refund and cancellation policy?

Accepted Answer

We occasionally offer a $1, 14-day trial so you can invest with Lamorak with no strings attached. It won’t auto-enroll you, and you can cancel anytime during the trial.

After the trial ends or if you subscribe to a plan without a trial all sales are final. To view our full refund and cancellation policy, click here.

Average	Lamorak Trading System
Trades per year	327
% winning trades	63.74%
Size of winners	2.27%
Win-to-loss ratio	0.82
Hold time	4 trading days

The Lamorak Trading System

A trading system you won't find anywhere else

Capture high probability swing trades

Trade long and short across all market environments

Add true diversification to your portfolio

How trading with Lamorak works

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