How to Build the Portfolio
Two books.
Eight names each.
The live signals page publishes target weights for both books: an ETF book and a single-stock book. The published results assume you split the capital you devote to this strategy evenly between the two and hold each book equal weight across its eight names. That works out to roughly 6% of the total capital that you devote to this strategy per position.
ETF book
Cross-asset trend across equity indexes, sectors, bonds, commodities and volatility. Backtested at a 39.5% annual return with a −36.8% worst drawdown and about 11 trades a week.
Stock book
The same trend engine over individual equities with a market cap of at least $2.5 billion, to avoid unnecessary risk and market manipulation. Backtested from January 2015 through Sept. 11, 2026 at a 71.7% annual return with a −42.1% worst drawdown and about 21 trades a week (the stock strategy's history extends back to 2005).
Volatility regime
When market volatility runs hot, displaced capital rotates into defensive assets rather than staying in the leaders. It costs a little in calm markets and earns its keep in the bad ones.
Why hold both?
The two books draw on different universes and their drawdowns rarely line up — correlation to the S&P 500 is 0.42 for the ETF book and 0.27 for the stock book, and they are moderately correlated to each other. Held in equal weight, the pair keeps most of the stock book’s return with meaningfully less of its pain. If you can only run one, the ETF book is the calmer of the two.
Tax watch-out
Watch for K-1 issuers
Some names on the lists are partnerships or MLPs. Instead of a 1099, they send a Schedule K-1 at tax time. K-1s tend to arrive late, can require state filings in places you don’t live and often mean a more expensive return.
We flag these tickers with a small “K-1” badge on your dashboard. If dealing with K-1s isn’t something you want to take on, just skip those names and move to the next alternate on the list.
A practical approach
- Split the capital that you want to devote to this strategy in half — one half for the ETF book, one for the stock book.
- Buy the eight names in each book in roughly equal dollar blocks. Whole shares are fine; you don’t need to be precise.
- Skip any name you can’t or won’t hold — a K-1 issuer, say, or something that doubles up on exposure you already have — and take the next alternate instead. Each book publishes eight.
- Check in weekly. Sell names that have dropped out of the book, buy the new ones and nudge the survivors back toward equal weight.
- Follow the volatility signals. Many will turn out to be false alarms, but over the long run you’ll be glad you heeded the warnings. Treat the cost of the occasional false alarm as insurance.
This is your portfolio. Tighter book? Hold the top four or five in each. Broader exposure? Take all eight, or even more. The framework is the two books and the weekly cadence — the count is up to you.