Merlin Strategy Performance for June 2020

Below is a performance summary for our Merlin trading strategy for the month of June 2020, net of transaction costs. To learn more about the strategy and to follow along in real-time with its trading signals, please visit the Merlin strategy page.

Merlin performance for June

Strategy June Year to Date
Merlin Margin +1.51% -8.93%
60/40 Benchmark +1.08% +2.58%

See Performance Disclosures: Monthly Performance.


Merlin closed trades in June

Closed Trades Return on Signal R-Multiple
EHTH -14.58% -1.00


Performance commentary

We saw continued gains for Merlin throughout June and finally outpaced the benchmark for the first time in a few months. Activity picked up for the strategy as we saw upwards of 8 long positions in June while our total cash invested never exceeded 33% for the Margin Account.

We hit a handful of initial profit targets but only fully exited one trade in ticker EHTH for -1.0R.

Here’s how Merlin was positioned for the start of July:

Merlin Strategy Performance Image of June 2 allocation

Healthcare and technology stocks continue to dominate our TR150 watchlist, but given the parabolic moves in tech it’s been hard to gain any exposure there.

Final thoughts

Merlin still trails the benchmark year-to-date so there’s plenty of work and ground to make up during the second half of the year. We’re expecting exposure to increase throughout July and likely spill over into some technology names if the Nasdaq ever decides to take a breather.

If you’re looking for an evidence-based strategy for swing trading individual stocks and ETFs on an end of day closing basis, check out the details behind Merlin here.

Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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  1. M segel on 12:53 pm July 11, 2020 at 12:53 pm

    Why Merlin in so much cash missed rally

    • Evan Medeiros on 2:14 pm July 11, 2020 at 2:14 pm

      The speed and narrow leadership on this market recovery are the primary reasons “why” the strategy has been only lightly exposed these past couple of months. Merlin isn’t a momentum system, so it’s not designed to pay up for stocks that are moving up in a straight line.

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