Systematic Strategies · Rules-Based
No discretionary calls. No anxiety. Just rules and rebalances.
Why This Works
Rules remove emotion. Data removes guesswork. Over 20–40 years of US market data, simple rules-based strategies have consistently beaten discretionary stock picking and the S&P 500. I've seen it in the research and I've seen it in my own capital.
Each strategy ranks thousands of stocks using quantitative metrics — value ratios, momentum signals, or both.
The highest-ranked stocks are selected. Equal weight. No discretion. The rules decide, not emotions.
When you're ready, repeat the process. Sell the old, buy the new. Annually is recommended — monthly is more effective if your tax regime allows it.
Getting started
Pick one or more strategies. Value, Momentum + Value, or Momentum. Or run all three for better diversification.
See today's ranked stocks. The system ranks thousands of stocks daily using live market data. Pick your top 10–25.
Buy when you're ready. In your own broker (IBKR, any broker), equal weight. There's no fixed date — you decide when to act.
Rebalance at your own pace. Check back when you want to rotate. Annually is recommended. The data is always there.
The system does the thinking. You just execute. No research, no analysis, no second-guessing.
Portfolio Size
I recommend a minimum of 10 stocks per strategy. That's where diversification starts to meaningfully reduce single-stock risk while still capturing the momentum or value signal.
For larger portfolios, 25 stocks is optimal. My backtests show the Sharpe ratio peaks at 25 — beyond that, you dilute the factor exposure.
“The strategy that works best is the one you can stick with. Rules-based systems remove the hardest part of investing: yourself.”— James O'Shaughnessy, What Works on Wall Street
The Three Strategies
Strategy 1
A systematic approach to finding undervalued stocks. The strategy ranks the entire market using a proprietary composite of fundamental value metrics, then selects the cheapest stocks. No discretion. Rebalance annually.
Sector and quality filters remove stocks where the valuation metrics aren't meaningful, ensuring a clean universe of investable companies.
The exact ranking formula, filters, and market cap thresholds are available to Pro members.
Strategy 2
Combines two of the strongest factors in finance — value and momentum. First, the system identifies the cheapest stocks using the Value composite. Then, within that group, it ranks by price momentum and selects the top performers.
You're buying cheap stocks that are already moving up — avoiding value traps while capturing upside momentum.
The exact momentum window, value decile, and filter parameters are available to Pro members.
Strategy 3
Based on peer-reviewed academic research. Unlike short-term momentum (which tends to reverse), this strategy targets an intermediate momentum window that has persisted across decades and geographies.
The strategy focuses on larger, more liquid stocks — closely matching the universe where the original research was conducted.
The exact momentum calculation, lookback periods, and market cap filters are available to Pro members.
How I invest
Running all three lowers my overall portfolio variance and improves the Sharpe ratio. Value and momentum are negatively correlated — when one underperforms, the other picks up the slack. Combining them smooths out returns and makes the portfolio easier to hold through drawdowns.
That's the beauty of systematic investing: I don't need to think, analyse, or second-guess. The rules run themselves. I run all three with real capital, and the systematic side requires almost zero time — just one rebalance per year.
Rebalance frequency
My backtests show that monthly rebalance outperforms annual by ~3–3.5% CAGR, with significantly lower drawdowns (−18% vs −30%). The momentum signal decays over time — refreshing it monthly captures more of the effect.
The catch: more frequent rebalancing means higher turnover, which triggers short-term capital gains tax in many jurisdictions. If short-term gains are taxed higher than long-term (e.g. the US), the tax drag can eat most of the extra return.
Rule of thumb: same tax rate for both? Monthly is clearly better. Higher short-term rate? Annual may win after tax. Choose based on your tax regime.
Pricing
See 3 stocks for free. Go Pro for the full system.
The alternative costs more.
Similar services: $1,000–2,000/year. Financial advisor: 1% AUM. Bivar Capital: $39/month. Cancel anytime.