Network Momentum (Quads) via Portfolio123.com

Hi, I started implementing the Quads via Portfolio123.com:

Here are the links to the screens (free for P123 Subscribers, screen subscriber level sufficient):
Quad 1-2 (Market is pricing in goldilocks or reflation)
https://www.portfolio123.com/app/screen/summary/306142?st=0&mt=1

Simple but effective implementation, it basically looks for risk on ETFs being above the 20-Day moving average (XLF, QQQ, SMH, GBTC, XLK, KRE, IWM). If more than 4 (e.g. min. 5) are above, it detects a risk on market.
Run the screen daily to see if it finds stocks, if yes = Risk on!

The theory is simple: A flower does not make a spring, but tons of flower do ;-)
Make sure you only use well trending factors to determine Quads —>

Here is the paper: https://ssrn.com/abstract=3844484

So high Beta, relative strength, size (in my understanding Big Size strong = good for the market, so no equal weighted ETFs used!) trend well.

Here is the same screen, just for Quad 3 (market is pricing in Inflation):
https://www.portfolio123.com/app/screen/summary/306141?st=0&mt=1

Run the screen daily to see if it finds stocks, if yes = Quad 3 (risk off, if the Quad 1-2 screen does not find any stocks, risk on if the Quad 1-2 and Quad 3 screen finds stocks, but then it is a good idea to look for longs in the energy space too).

Right now, we have risk on, both screens find stocks… (though I am still hedged via VIXY, 2.5% position, because long vol is very cheap!).

Have fun!

Best Regards

Andreas