Archive Category: Infinite Momentum Alert Archive

One key feature of a fully systematic investment strategy is that it allows you to avoid being reactive to the news. We have set dates on which we evaluate our portfolio for potential changes. For us in Infinite Momentum Alert, that’s once every four weeks — always on a Friday.

This week’s issue of Infinite Momentum Alert is a must-read — so please follow along closely.

I’m pleased to report… Our concentrated, small-cap-leaning portfolio of 10 stocks doubled the performance of its blended benchmark last month, gaining a solid 5%. This is something to celebrate, for sure!

Whenever I discuss trading systems like Infinite Momentum with folks, almost everyone ends up asking the same question: If you’re the one designing the system, then why not design it to win as often as possible? It makes sense, too.

Whenever I think about the markets or the systems I use to trade them, I force myself to be clear about the time frame that’s most important. Over the long run, a system’s performance is driven by its edge and its average efficacy. Over the long run, fundamentals driving the economy and markets are impactful and create multiyear trends that both last longer in time and extend further in price than most people can imagine.