Momentum Detection It’s All About Reducing the Noise The performance of momentum investing depends on its proficiency in extracting trend signals from noisy market data. Our advanced signal processing algorithms employ the cross-disciplinary sciences of Matched Filter Theory and Differential Signal Processing – the same technologies that enable WiFi, USB, iPhones, and remotely controlled rovers on Mars to perform so well. Simply put, cleaner momentum signals lead to better decisions. Please view the video (right) to appreciate the importance of getting momentum right. Whether a bull or bear strategy is engaged, The Alpha Sheet Model Portfolios select a set of momentum leaders from among their pool of candidate funds.

StormGuard™ StormGuard™ - Market Risk Assessment Risk is not a trivial problem cured by an ordinary dose of diversification. Risk is a complex problem, and diversification’s passive “risk dilution” is only just the start. Our research shows that the most proficient way to reduce risk is through “avoidance” – specifically, avoidance of laggards and bear markets. StormGuard assesses the risk of U.S. equity markets using four key metrics: Price-trend indicates whether market prices are trending higher or lower. Market momentum employs volume to assess investor conviction. Value sentiment assesses recent 52-week highs and lows. Market volatility assesses the probability of an extreme market decline. Detailed charts of these factors can be found in The Alpha Daily Brief. Please also view the StormGuard video.

Dual Defense™ Two Guard Dogs Are Better While StormGuard™ is the first line of defense when market momentum fails, TrendGuard™ acts as a second line of defense by further incorporating a Defensive Backstop Model to compete directly for momentum leadership with the Model Portfolio’s candidate funds in order to provide a performance floor in the event that the candidate funds begin performing poorly separate from the broader market. Dual Defense™ assesses safety in two different ways: It’s like having a guard dog at the front door and a guard dog at the back door. We know that no guard dog catches everything – but two guard dogs are better than one! See more in this Dual Defense PDF. Please also view the Dual Defense video.

SwanGuard™ Black Swan Event Vaccination SwanGuard™ is an integrated extension of StormGuard designed to detect the onset of Black Swan market events, which are defined as being rare, unpredictable, and beyond the realm of normal expectations. The 2020 Covid-Crash had an extraordinary volatility spike and clocked in with the fastest equities crash on record, 3x faster than 1929 and 4x faster than 1987. SwanGuard may be triggered at any time during the month to signal an immediate move from equities to relatively safe US Treasuries. StormGuard eventually takes control from SwanGuard and manages the remainder of the Bear Market. Additional details can be found on our SwanGuard Page. Please also view the SwanGuard video.

Related Services

AlphaDroid™ Advanced Investment Tools for Advisors AlphaDroid investment Strategies and Portfolios level the playing field with Wall Street by putting the power of award-winning, high-performance investment algorithms in your hands. Our True Sector Rotation algorithm owns the momentum leaders in bull markets, and our StormGuard algorithm invokes a Bear Market Strategy algorithm designed to protect and grow your assets during bear markets. Select from among our many readymade Models, or create and edit Strategies and Portfolios of your own design to better address specific client needs. Please view the AlphaDroid overview video (right). To see how it works, please view this AlphaDroid Demo Video.

Alpha Daily BriefFree for Everyone Market & Portfolio Analysis Tools The Alpha Daily Brief is designed to (1) help everyone better understand Advanced Momentum and Defensive Portfolio design principles, and (2) provide useful daily heatmaps and current market risk assessments. Its primary pages include: •   Market Heat Map – Discover Which Trend is Your Friend •   Risk Avoidance – Know When to Hold and When to Fold •   Bear Market Strategies – Defensive Options to Exit Boldly •   Portfolio Design Tool – Test Advanced Portfolio Design Ideas

Merlyn.AI AI-Powered Indexes - ETF Sponsor Bull Market Leaders – Bear Market Exits. We improve investment decision-making using AI and signal processing to identify momentum in capital markets. We employ differential signal processing and matched filter theory to reduce market noise, assess its characteristics, and adaptively tune our momentum filters – all of which are intended to improve the selection of momentum leaders. Merlyn.AI further employs genetic algorithms to evolve competing sets of ETF models from which momentum-leading ETFs are identified. When bear market conditions are indicated, Merlyn.AI Indexes switch to a defensive strategy and select a portfolio of four or more momentum leaders from a bear universe of candidate ETFs. Please view the Merlyn.AI video (right). Click to visit the Merlyn.AI Site.

"The" Momentum Book        Free PDF Download Conquering The Seven Faces of Risk ''This book is one of the very few 'must read' books. For those who have been burned by the 'diversify and rebalance' mantra, Conquering the Seven Faces of Risk is sorely needed, and Scott Juds truly delivers. As a fiduciary, I find SectorSurfer's risk mitigation algorithms to be so far superior to the conventional buy-hold-and-rebalance models that I cannot justify risking my clients' assets with the latter. I am impressed with Scott Juds' mission to educate the retail investing community.'' David Yeh, MD, (Retired Nuclear Physician), Investment Advisor, and Author of The Busy Doctor's Investment Guide