Today I’m starting my new momentum swing trading strategy with a $25K live account.
The strategy trades momentum stocks from the S&P 500 and Nasdaq 100 based on a scoring system. The goal is to have a concentrated portfolio of the strongest stocks and ride the larger trends rather than trying to predict short-term market movements.
This is not a day-trading strategy. Positions will generally be held for several weeks or months, with the portfolio reviewed and rebalanced monthly.
Until recently, I was trading an earlier version of this strategy live, which rebalanced the positions weekly. However, my backtests showed that over a longer period, weekly rebalancing does not provide a significant advantage over monthly rebalancing, especially once trading costs are included.
Because of that, I have now changed the strategy to monthly trading.
I’m also trading the strategy fully automated through an interface I developed. I use Interactive Brokers as my broker and execute the trades through the TWS API.
Here are today’s trades, which will be executed at the market open.
Obviouisly, the strategy seems to be expecting a strong tech bounce. Whether I would personally make the same decision in the current market situation is another question. But I follow the strategy and the scoring system, and then we’ll see how it goes...
**Initial portfolio**
These are today’s submitted orders:
|Ticker|Shares|Planned position|
|:-|:-|:-|
|SNDK|1|$1,589|
|MRVL|12|$2,496|
|ARM|9|$2,608|
|DELL|7|$2,829|
|STX|3|$2,675|
|MU|3|$2,912|
|WDC|4|$2,194|
|INTC|24|$2,531|
|LITE|3|$2,513|
|FLEX|20|$2,548|
|**Total**||**$24,895**|