I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners.

Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days.

Mid Cap Winners Overview

Stocks from the mid cap space can make excellent picks because they are not as volatile as small cap stocks but they offer more growth potential than large caps.

This strategy goes against the usual buy high, sell higher mantra that we get from the momentum crowd. Instead, our system relies on simple logic to pick stocks before they go up.

Our historical simulations show impressive equity performance that is sharply better than buy and hold. We also note a solid win rate around 55% and a profit factor of 1.73 without any market timing filter applied.

This is a particularly good strategy for diversifying a momentum or futures strategy or simply trading on it’s own alongside some discretion and risk management.

Following you will find some interesting charts and graphics from the strategy. These were all produced with the Amibroker backtesting platform:

Strategy Charts & Graphics

mid cap winners equity curve

Mid Cap Winners equity curve.

mid cap winners system profit table

Monthly profit table.

mid cap winners monte carlo chart

Mid Cap Winners monte carlo analysis with 1000 reshuffle.

mid cap winners jack example trade

An example trade from Mid Cap Winners in JACK. Green arrow is buy and red arrow is sell.

Access Our Trading Strategies

As usual, Mid Cap Winners is provided with complete explanation of rules and full Amibroker code. This is not a black box, you are given full access to all of the formulas.

Marwood research now includes over 20 unique strategies for financial markets.

If you have not yet signed up with our program you can do so here.

Thank You.


 

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One comment

  1. Thanks for the update JB! Great post. Always appreciate you sharing these trading strategies and the thinking behind them.

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