What are Jim’s Trading Strategies?

The strategies are designed to be run as portfolios, but you can pick and choose between them to buy what you like and build your own portfolio.   Flexibility is the key!

Sector Rotator Strategy

This strategy is to hold short-term (0-9 months) to intermediate-term (9-18 months). It is focused on a portfolio growth strategy with an emphasis on risk management.  We consider this portfolio to be higher risk as defined by investment standards relative to the equity markets.  The objective is to achieve a return of 1% per month by managing the risk.  The asset classes consist of US stocks and bonds, global stocks and bonds, currency, commodities and real estate.  The primary investment vehicle used is ETFs (exchange traded funds), mutual funds, individual stocks and bonds, real estate investment trusts, master limited partnerships, inverse ETFs and options where prudent to hedge portfolios during high volatility periods of market cycles.  Dependent on market conditions there will be periods when the cash allocation could equal 100% of the portfolio, and periods when equities could equal 100% of the portfolio.

Only ETF Strategy

This strategy is short-term (0-9 months).  It is focused on technical analysis and has a higher frequency of trading. The objective is to maximize returns by capturing short-term trends and trading opportunities.  The strategy is aggressive resulting in higher volatility.  It consists of ETFs only including inverse ETFs.  There are more than 1300 funds currently available for investing which covers every asset class.  When appropriate, the leveraged ETFs will be used in the portfolio for both growth and hedging market risk. The risk of this strategy must be appropriate for the investor based on his/her risk profile and objective.

S&P 500 Strategy

This strategy is short-term (0-9 months).  It is focused on growth exclusively using the ten sectors and matching ETFs which mirror the S&P 500 index sectors.  The goal is to break down the ten sectors daily making a determination for portfolio weighting in relationship to the index.  We can be overweight, underweight, or have no allocation by sector.  The strategy is a combination of technical and fundamental data.  The use of economic, geopolitical, and global economics have a bearing on the allocations as well.   The goal is to outperform the S&P 500 index by overweighting the allocation to the sectors that are outperforming. This model’s strategy allows for the use of SPY, SPDRs S%P500 Index ETF and SH, ProShares Short S&P 500 Index ETF. These additional funds allow for short term trading when the index is overbought or oversold.

One Egg Strategy

This strategy is maximum growth and momentum short-term.  By scanning 200+ industry groups daily we find the sector with the highest potential to meet our criteria short term.  The scans are performed with a quantitative strategy combining both fundamental and technical analysis.  There is one asset class chosen and 100% of the portfolio is invested in that asset class via an ETF with a defined disciplined entry, exit and target.  Each position is assigned a maximum loss ratio relative to the risk assigned to the asset class.  There is a stop placed on the position to maintain a discipline relative to the downside or loss.  Equally, the upside has a defined target and profits are taken to avoid the emotion of greed.  This is a very defined and disciplined strategy designed to maximize growth while managing the risk of each position.  This strategy is for investors who understand the risk and have a net worth large enough to accept the risk and volatility.