Below is a performance summary for our trading strategies for the month of January 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 January
|Strategy||January||Year to Date|
See Performance Disclosures: Monthly Performance.
Merlin closed trades in January
|Closed Trades||Return on Signal||R-Multiple|
Merlin varies position size based on the individual stock, so R-Multiples are important measures of account impact.
Lamorak closed trades in January
|Closed Trades||Return on Signal|
Lamorak equal weights position size across all trades, so no R-Multiple are necessary to compare signal profitability.
Merlin kicked off 2021 with a bang! Double-digit monthly performance returns after an already strong fourth-quarter run-up last year. Out of the 18 trades the system closed out, only one of them resulted in a loss (REGN). Why was the performance so strong? Merlin remained 70 to 85% invested the entire month in (mostly) higher beta individual stocks that diverged positively from a relatively flat S&P500.
Not to be left in Merlin’s shadow, Lamorak saw a positive 0.32% return which makes sense, given the low volatility one-way grind higher, which is not the ideal environment for this system. As expected and per usual, Lamorak was much more active turning over the portfolio in short-term swing trades.
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.