FOLLOW THE MOMENTUM...
Sector Rotation trading strategies are popular because they can improve risk-adjusted returns and automate the investing process. Momentum investing, which is at the heart of the sector rotation strategy, seeks to invest in sectors showing the strongest performance over a specific timeframe.
The iQUANT.pro Sector Rotation Model selects the top 3 (our of 10 sectors) every two months based on price momentum.
Start with the 10 sectors of the S&P 500.
Rank the sectors by 12-month less 6-month price momentum and select the top 3 sectors.
Each sector is represented by a unique 5-stock screen resulting in a portfolio of fifteen large-cap stocks.
Rebalance every two months.