Trading Systems Performance for February 2021

Below is a performance summary for our trading strategies for the month of February 2021. To learn more about the strategies and to follow along in real-time with their signals, please visit the Trading Systems page.

System performance for February

Strategy February Year to Date
Merlin -0.77% +11.67%
Lamorak +3.02% +3.34%
60/40 Benchmark +0.72% -0.33%

See Performance Disclosures: Monthly Performance.


Merlin closed trades in February

Closed Trades Return on Signal R-Multiple
WTRG -6.99% -1
BTG -15.53% -1
AEM -12.66% -1
LMNX 25.45% 1.5
KNSL -13.71% -1
DISH 6.99% 0.48
EBS 10.12% 0.39
ZM 5.94% 0.39
PLMR 14.74% 0.50
WING 8.46% 0.5
POOL -7.05% -1
TSCO 18.84% 1.5
TWOU 49.04% 1.5
SGEN 8.32% 0.5
GNMK 46.42% 1.63
VEEV 15.62% 1.5
ACMR 36.67% 1.5
CLX -11.01% -1
SCPL 30.01% 1.66
WPM 6.81% 0.69


Merlin varies position size based on the individual stock, so R-Multiples are important measures of account impact.


Lamorak closed trades in February

Closed Trades Return on Signal
ISRG 1.82%
TMUS 1.15%
V 5.73%
SBUX 0.94%
PAYX 4.50%
WFC 1.53%
WBA 5.35%
EXC 0.14%
GD -3.31%
ABBV 0.83%
SPG -4.36%
SPLK 0.71%
MO 0.76%
AIG 1.96%
CTAS 3.47%
ADBE 0.09%
AMGN 2.80%
CRM 0.94%
LLY 1.06%
KDP 2.01%
BK 1.72%
PCAR 6.48%
SGEN 2.08%
DOW 4.68%
BAC -0.61%
MS -2.46%
VRSK 0.39%

Lamorak equal weights position size across all trades, so no R-Multiple are necessary to compare signal profitability.


Merlin commentary

Merlin’s had a strong stretch of outperformance lately so it only makes sense to see the system cool off a bit and put in a slightly negative month. The system began the month of February strong, but by the end of it, as the broad market began to pull back and sell off, Merlin felt the pressure and began getting stopped out of some of its holdings. Despite some exits, it remains heavily invested going into March.


Lamorak commentary

As volatility rises, and the  market outlook becomes more uncertain, our expectations is that Lamorak will begin to rotate into favor, and that’s exactly what we saw this month. A positive 3.02% return and a strong start to the month as equities continue to face headwinds.

Note: we made an update to the way we were reporting performance for Lamorak. Previously, we had been calculating performance based on closed trades for the month only, but now we have updated numbers to track performance mark-to-market with commissions, slippage, and all real market impact accounted for. This will give us an apples to apples comparison between Merlin, Lamorak, and our benchmark.

If you’re looking for professional evidence-based strategies to help you trade individual stocks and ETFs, visit our Trading Systems page to learn more.

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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