This system trades stocks belonging to the Nasdaq 100 index.

It is a conflux of various methodologies and concepts including
stock rotation, market filters, sensitivity filters, mean reversion, peer strength, short term corrections and medium term outperformance.

I trade the system myself daily, usually preparing my orders for the next trading day just after the market has closed, so if I submit the orders to WealthSignals at the same time that should give people who want to follow my system plenty of time to submit orders to their own broker.

All trades are from the long side and are entered and exited using limit orders.

To trade the system the user usually needs to enter 10 buy orders each day with each order sized to represent 10% of account equity. Typically this will result in an average of about 5 stock purchases each week and the average holding period is about 5 days. There will be times when there are fewer stock purchases and times when there are more, so I recommend using a margin account (with standard 2:1 margin) so that even in busy times most trades can be taken.

I have arbitrarily chosen $50,000 for the model account starting size. At this equity level individual trades would each be for $5000 worth of stock and if the account is a 2:1 margin account up to $100,000 worth of purchases could be made which is sufficient to ensure that almost all signals can be taken.

If you are keen to trade the system but wish to use a much lower account size this could be achieved using a broker that offers ultra low commissions. One such broker I've used is SogoTrade. They charge a flat $3 commission per trade which effectively means you could trade this system with a much lower account size.

Under normal market conditions the system has quite low drawdowns. In extreme situations such as the 2001 9-11 attacks or the 2008 financial crisis the system will get dragged down by the market malaise but its drawdowns still manage to be less severe than the market as a whole.