The Merlin Trading System

Merlin is a fully rules-based trading system that patiently swing trades stocks and ETFs during healthy market environments. 

Measurement Merlin Margin 60/40 Buy & Hold Portfolio
Compound Annual Growth Rate+16.31%+7.28%
Largest 3 Drawdowns-36.57%, -22.10%, -17.60%-32.57%, -22.78%, -21.70%
Sharpe Ratio0.980.62
MAR Ratio0.450.21
Correlation to 60/40 Portfolio0.46Benchmark

Measurement definitions. Margin portfolio invests up to 150% at times, see Performance Disclosures: Portfolio Statistics

Merlin performance

  • Compound Annual Growth Rate: +16.31%
  • Largest 3 Drawdowns: -36.57%, -22.10%, -17.60%
  • Sharpe Ratio: 0.98
  • MAR Ratio: 0.45
  • Correlation to 60/40 Portfolio: 0.46

Measurement definitions. Merlin invests up to 150% at times, see Performance Disclosures: Portfolio Statistics

How Merlin trades

Merlin is a long-only algorithm that buys pullbacks within uptrends during healthy market environments.

Merlin primarily trades lesser-known but liquid small and mid-cap stocks as well as a basket of popular index and sector ETFs. All signals are generated using daily prices after the market closes.

Merlin is right for you if you're someone who

  • Values research driven rules-based trading systems

  • Enjoys longer-term more patient swing trading

  • Is comfortable holding 15 to 25 positions at once

  • Has a large account size and wants to grow and protect it

  • Is seeking competitive long-term risk-adjusted market returns

How Merlin trades

Merlin is a long-only algorithm that buys pullbacks within uptrends during healthy market environments.

Merlin primarily trades liquid but lesser-known small and mid-cap stocks as well as a basket of popular index and sector ETFs. All signals are generated using daily prices after the market closes.

Merlin is right for you if you're someone who

  • Values research driven rules-based trading systems

  • Enjoys longer-term more patient swing trading

  • Is comfortable holding 15 to 25 positions at once

  • Has a large account size and wants to grow and protect it

  • Is seeking competitive long-term risk-adjusted market returns

Get to know Merlin by reviewing its month-by-month performance

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 the default margin portfolio position sizing algorithm, which will invest up to 150% at times, see Performance Disclosures: Monthly Performance.

JanFebMarAprMayJunJulAugSepOctNovDecYTD
2024-5.69%+9.20%+5.18%+8.33%
2023+1.58%-2.61%-6.71%-0.29%+1.55%+3.38%-0.73%-4.61%-3.55%-3.74%+5.12%+4.23%-6.94%
2022-16.38%+2.10%+1.79%-5.71%-0.96%-3.22%+2.85%-0.66%-1.74%+0.09%+0.59%-0.39%-20.91%
2021+12.44%-0.77%+1.31%+9.90%-3.26%+5.09%-6.32%+9.25%-8.21%+5.03%-4.20%+2.25%+22.01%
2020+4.29%-8.25%-7.38%+0.73%+0.17%+1.51%+0.92%+5.23%-1.32%-0.20%+12.40%+7.55%+15.65%
20190%+0.42%-0.84%+0.77%-0.01%+2.63%+1.89%-1.57%+5.32%+1.11%+8.19%+5.42%+16.53%
2018+18.01%+0.32%-0.74%-0.75%+2.26%+0.66%+1.07%+8.22%-1.1%-7.5%0%-5.67%+14.78%
2017+7.07%+8.82%+1.09%+3.34%-4.02%+4.84%+4.28%-5.38%+4.91%-0.61%+2.10%+1.84%+28.28%
2016-6.99%-1.61%0%0%-0.10%+1.39%+5.65%+0.1%+1.88%+2.77%+9.12%+5.25%+17.45%
2015-0.38%+5.38%+0.54%-0.67%+1.42%-1.1%-2.11%-0.25%0%+2.64%-0.02%+1.13%+6.59%
2014+2.17%+5.65%+1.09%-3.83%+5.24%+8.01%+1.74%+4.49%+0.66%+1.18%+2.25%-1.52%+27.14%
2013+9.94%-0.76%+3.39%+4.77%+7.42%-1.87%+8.4%+0.56%+0.37%+5.6%+4.48%+2.95%+45.26%
2012+1.29%+1.22%+2.23%-0.49%-4.18%+4.74%+4.89%+3.4%+7.03%-1.43%-5.03%+4.96%+18.63%
2011+5.61%+4.52%-0.47%+6.88%+1.1%-7.35%-1.58%-4.63%0%+0.83%0%+0.40%+5.29%
2010+7.09%+1.31%+17.12%+10.7%-8.52%-5.35%+1.97%-0.4%+9.29%+8.28%+0.7%+2.85%+45.06%
20090%0%0%0%0%0%0%+0.37%+2.97%-2.13%+3.28%+5.06%+9.55%
2008-3.99%0%0%0%0%0%+0.75%+0.73%+1.46%0%0%0%-1.05%
2007+6.42%+1.34%+0.69%+6.72%+2.96%+3.34%-1.26%-2.35%+3.08%+2.28%+1.41%0%+24.62%
2006+0.38%-0.05%+2.57%+4.48%-4.5%-2.39%+0.79%+1.53%+1.89%+8.92%+2.54%+1.39%+17.54%

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

(Margin portfolio invests up to 150% at times, see Performance Disclosures: Equity Curve)

How trading with Merlin works

When you subscribe to the Merlin Trading System Membership, you'll receive daily trade reports with all of the information you need to follow the system with ease.

All you need to do is log in once a day, anytime after the market closes, to review the latest trade signals and member-only pages. Most traders spend 5-minutes or less per day on average reviewing the trade reports and placing Merlin orders.

Get started today with a Merlin Trading Membership

Monthly Membership

$99 / per month
  • Member-only dashboard
  • Daily trade reports
  • Position size calculator
  • Priority member support
  • BONUS: TR150 watchlist
  •  

Annual Membership

$990 / per year
  • Member-only dashboard
  • Daily trade reports
  • Position size calculator
  • Priority member support
  • BONUS: TR150 watchlist
  • Get 2 months free choosing annual!

Please note: bonus TR150 Watchlist access is granted to active Merlin Trading System memberships. Cancellation of your Merlin membership will revoke TR150 Watchlist access. Looking for a trial before you commit? Test drive all three of our trading systems for 14-days, just $1. No auto-enrollment and no strings attached. Sign up here.

Frequently Asked Questions

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.