SEASONAL SECTOR
ROTATION
AT A
GLANCE
The seasonal sector rotation strategy is built upon the precept that certain areas of the market place exhibit patterns over time which coincide with the calendar, and the US election cycle.
There are many ways to 'follow the trend' and one which we have built here is a combination of following cyclical trends which have held up for almost 300 years both on an annual basis and within the 4-year US election cycle. We have tested a wide range of different instruments, covering a diverse pool of sectors and industries, and our seasonal sector rotation strategy is the zenith of this. We categorise our pool of instruments as either offensive or defensive, and when the wider market exhibits either of these conditions, then we are able to select from our mechanised approach which position we believe will be best for the market conditions, using a then counter-intuitive mean reversion approach.
BY THE
NUMBERS
EQUITY
GROWTH
Starting balance of $100,000 USD
HISTORICAL
PERFORMANCE
ASSET
ALLOCATION
INVESTMENT
STRATEGY
This Seasonal Sector Rotational Strategy works by cross referencing a list of of differing ETF's which cover the entire width and breadth of the market with our indicator matrix which we have developed.
This matrix is made up of multiple elements to determine which position should be held for the forth coming market condition. This ranking system take into consideration multiple factors including:
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Time of Year
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Year within US Election cycle
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Fama-French 3-Factor Model
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Relative Strength Index
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Exponential Moving Average Cross Over
There are a few other key indicators we use, which are proprietary. Each indicator produces a number which is then added up to give a rank. The instrument with the highest value is then selected for the following trade.
