Transparent performance that you can measure
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.
Here are the performance results compared to a 60/40 stocks and bonds portfolio.
|MEASUREMENT||Lamorak Portfolio||60/40 Stocks/Bonds Portfolio|
|Compound Annual Growth Rate||+20.54%||+7.39%|
|Largest 3 Drawdowns||-22.11%, -17.97%, -12.89%||-32.57%, -22.70%, -11.89%|
|Average Trades per Year||320||N/A|
|Correlation to 60/40 Portfolio||0.17||Benchmark|
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.
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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)
Percent of trades profitable:
Average winning trade:
Average losing trade:
Average hold time:
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 12+ 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
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 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.
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.
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.
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 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.
Profit during volatility and sideways markets without needing to stare at markets all day
- Long and short signals
- Member-only pages
- Daily trade reports
- Long and short signals
- Member-only pages
- Daily trade reports
- Save $218 dollars choosing annual
What Lamorak 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."
Want a free trial before you commit?
We offer an All Access pass to both our Merlin and Lamorak trading systems for 14-days, completely free.
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.