Trading Systems Performance for July 2021

Below is a performance summary for our trading strategies for the month of July 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 July

Strategy July Year to Date
Merlin -6.32% +18.39%
Lamorak +8.62% +17.40%
60/40 Benchmark +2.26% +10.24%

See Performance Disclosures: Monthly Performance.


Merlin closed trades in July

Closed Trades Return on Signal R-Multiple
LABU 21.19% 0.5
CRMD -18.32% -1.01
NIU -19.60% -1
ICLK -23.96% -1.01
FIVN 15.11% 0.56
AHCO 10.81% 0.5
KLR -17.47% -1
EBIX 9.34% 0.5
LOB 4.95% 0.4
PINS 11.61% 0.5
APAM 6.77% 0.5
KIRK -14.35% -1
PACB 17.09% 0.53
ATER -23.33% -1
VERI 17.62% 0.5
RARE -19.87% -1
OCUL -28.50% -1
GKOS -25.27% -1.63
PANW 18.14% 1.5
PDD -22.56% -1
AFMD -16.76% -1.01

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


Lamorak closed trades in July

Closed Trades Return on Signal
BKNG 2.28%
NFLX 0.79%
AMZN 2.55%
BA 6.81%
CAT 3.90%
FB 2.84%
MRVL 5.20%
NVDA 4.83%
WDAY 4.80%
GE 5.74%
MNST 1.34%
OKTA 4.20%
PG 0.00%
PDD 0.87%
TCOM 1.47%
LRCX 3.21%
WBA 1.71%
MCHP 2.16%
NXPI 4.26%
AMAT 3.33%
VRSK -1.31%
HD 0.44%
MAR 3.66%
QCOM -1.63%
WDAY 3.67%
SWKS -6.31%
ADSK 0.00%
BIDU 0.62%
OKTA 1.63%
CDNS -0.25%
LULU -0.26%
NFLX 1.46%

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


Trading system commentary

53 closed trades | 66% winners

There was a lot of activity for both systems in July with 53 closed trades in total. Every few months, even during bullish cycles, we tend to get a bit of a portfolio cleanse in our Merlin positions. What that basically means is the market shakes us out of our weak holdings triggering stop losses, however, since Merlin was still signaling to stay long the market it immediately puts that cash to work in new trade setups.

A lot of traders think getting stopped out is a bad result, but I tend to get excited to drop under-performing positions and replace them with new potentially profitable trades. Drop the losers, hang onto the winners — rinse and repeat.

Moving on to Lamorak, it had one of its best months in a long while thanks to the uptick in volatility (that same volatility that caused Merlin losses). Given the strong month out of Lamorak, we’ve got a much closer year-to-date race now between the two systems, at +18% and +17% respectively.

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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