The Lamorak Trading Strategy
Lamorak is a fully rules-based trading system designed to help you tactically swing trade stocks long and short over a multi-day time horizon.
(Lamorak invests up to 150% at times, see Performance Disclosures: Portfolio Statistics)
| MEASUREMENT | Lamorak Portfolio | 60/40 Buy & Hold Portfolio |
|---|---|---|
| Compound Annual Growth Rate | +19.86% | +8.36% |
| Largest 3 Drawdowns | -22.11%, -17.97%, -12.89% | -32.57%, -22.70%, -11.89% |
| Sharpe Ratio | 1.43 | 0.80 |
| MAR Ratio | 0.92 | 0.23 |
| Correlation to 60/40 Portfolio | 0.10 | Benchmark |
(Measurement definitions. Lamorak invests up to 150% at times, see Performance Disclosures: Portfolio Statistics)
Trading results posted every single month
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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | -2.99% | +5.86% | -1.02% | -0.83% | +0.69% | +2.84% | -3.29% | -2.27% | -1.35% | ||||
| 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% |
You are in control of the trade size you take for each signal. Want higher returns? You can choose to risk more per trade. Want smaller drawdowns? Dial the size back. These are the portfolio returns of our default margin position sizing algorithm, which will invest up to 150% at times, see Performance Disclosures: Monthly Performance.
What Lamorak subscribers are saying
"I have tried other services like the Trade Risk's in the recent past and none comes close.
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."
How trading with Lamorak works
When you subscribe to the Lamorak Trading System Membership, you'll receive daily trade reports with all of the information you need to follow the strategy with ease.
All you need to do is log in once a day, anytime after the market closes, to review the latest signals and member-only pages. Most traders spend 10-minutes or less per day on average reviewing the trade report and placing Lamorak orders.
Frequently Asked Questions
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 trading:
- Decisions are based on real research and extensive testing of historical markets
- 100% discipline, the system always executes flawlessly
- No emotional biases
- 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.
No, absolutely not.
We’re doing all of the heavy lifting and number crunching for you. Internally, we have the Lamorak 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.
Lamorak is a long/short algorithm that takes advantage of volatility when stocks have moved too far and too fast in one direction. It 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.
Lamorak trades large cap liquid stocks in the Nasdaq 100 and S&P100 indices. All signals are generated using daily closing prices. That means you won't have to watch markets throughout the trading day. You can place all of your Lamorak orders after the market closes and be fully prepared for the next session.
| Measurement | Merlin System | Lamorak System |
|---|---|---|
| Average Trades Per Year | 118 | 309 |
| System Win Percentage | 66.22% | 64.50% |
| Average Size of Winners (%) | 11.70% | 2.30% |
| Average Win-to-loss Ratio | 1.11 | 0.83 |
| Average Trade Hold Time | 36 trading days | 4 trading days |
See Performance Disclosures: Portfolio Statistics.
Lamorak has a smaller edge per trade relative to our Merlin trading system, but since it turns over trades much faster, it's able to complete nearly 3 trades by the time Merlin finishes one.
The strategy has been backtested and validated across thousands of individual stocks with careful considerations not to data mine or overfit. Lamorak is the newest strategy in our line up, running live since 2020.
Yes and no.
When you become a Lamorak subscriber, you'll learn about our easy to follow position sizing guide, which you can easily modify to make sure you don't use any margin in your account.
However, since Lamorak shorts stocks, which requires margin, you will not be able to participate in short signals if you're trading in a retirement or cash settled account since shorting (margin) is not allowed.
Lamorak is a professional trading strategy that focuses on producing strong risk-adjusted returns. It’s designed to scale and handle large account sizes.
Account minimums are a personal decision and will vary greatly from trader to trader depending on your circumstances, goals, and risk tolerance. Here are some general guidelines to get the most out of the Lamorak trading service.
- Minimum account size: $25,000
- Recommended account size: $50,000+
We offer a fourteen day $1 trial to our trading system so you can take them for a test drive to make sure they live up to your expectations. There are no auto-enrollments or strings attached. The trial will end automatically after fourteen days.
We recommend all new users start with the $1 trial.
Once you subscribe to any of our memberships, all sales are final. To view our full refund and cancellation policy, click here.
Lamorak is right for you if you're someone who
-
Wants to beat the returns of buy and hold with lower drawdowns
-
Enjoys short-term tactical swing trading of stocks long and short
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Understands the benefits of research-driven rules-based trading strategies
Monthly Membership
- Long and short signals
- Member-only dashboard
- Daily trade reports
Annual Membership
- Long and short signals
- Member-only dashboard
- Daily trade reports
- Save $190 dollars choosing annual
Looking for a trial before you commit? Test drive our Lamorak and Merlin trading systems 14-days, for just $1. No auto-enrollment and no strings attached. Sign up here.
TRADING SYSTEM 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.