Another choppy one for SPY. The market bounced around all week — up one day, giving it back the next. The kind of tape where it feels like something is happening but nothing is really going anywhere.
Meanwhile, Systematic Flows is up ~27% YTD. SPY is up ~7.5%. That is not a small difference…
That's nearly a 20-point gap. And that gap is the entire point. The Pro Subscription costs less than a single day's alpha on this model. If you've been on the free tier watching from the sidelines, I feel bad for you.
On a 10k account, you would theoretically be up $2700, or $750 holding the SPY.
Do the math as far as your account size goes..
Two updates this week:
1. Sector Cap: 25% → 50%
We ran the backtests and the data was clear. The old 25% sector cap was forcing us to buy further down the list of strongest stocks just to stay diversified across sectors. We were leaving returns on the table by artificially limiting concentration in the sectors that were actually leading. The new 50% cap lets the model put more capital where the strength actually is. Individual stock sizing stays the same (~7% per position, 10 stocks). The only change is we're no longer handcuffing ourselves when one sector is clearly dominating.
2. Introducing the Nasdaq Barometer
This is a new weekly signal that tells you one thing: are we long the Nasdaq or not. That's it. Simple.
Current reading: LONG
If you want to express that view, here are your options based on your risk tolerance:
QQQ — Standard Nasdaq 100 exposure. The baseline.
QLD — 2x leveraged Nasdaq 100. For those comfortable with more volatility.
TQQQ — 3x leveraged Nasdaq 100. Full degen mode. Use at your own risk.
We'll post the barometer reading for Pro users each week. If the signal flips to flat on a day other than the regular update, we'll send a same-day alert so you're never caught offside. We'll share more on how the barometer works under the hood in future posts. For now, you have the signal.
What paid subscribers got this week:
The full stock model. 10 positions. Specific BUY and SELL signals. Exact tickers, exact sizing, exact execution instructions, and now the Systematic Flows Nasdaq Barometer — delivered before Thursday's open. That's the part of the newsletter that's generated the ~27% YTD. The barometer is a great tool on its own and simple, but combining the two is where the real edge lives.
The process matters more than the headlines. We let the model do the thinking. The only question is whether you're going to keep watching it work or start using it.
Disclaimer & Disclosure |
Systematic Flows LLC is a financial publisher, not a Registered Investment Adviser. All content provided by Systematic Flows LLC, including but not limited to the Weekly Signal, the Rotation Dashboard, and any market commentary, is for educational and informational purposes only. This information does not constitute a recommendation to buy or sell any security, nor does it represent personalized financial, investment, tax, or legal advice. No Fiduciary Relationship: Systematic Flows LLC is not acting as your fiduciary. The signals generated are based on a proprietary quantitative model and are delivered to all subscribers simultaneously. They do not take into account your specific financial situation, risk tolerance, or investment objectives. Risk of Loss: Investing in ETFs, equities, and commodities involves a high degree of risk. Past performance (including backtested or out-of-sample data) is no guarantee of future results. It is possible to lose some or all of your principal investment. Conflict of Interest: The operator of Systematic Flows may hold positions in the ETFs or assets mentioned in this signal. Publisher Exemption: This newsletter and signal service are provided under the "publisher’s exemption" from the definition of an investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. |
Always consult with a licensed financial professional before making any investment decisions. |