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.
