The Compass

About this strategy

Holds the strongest-momentum S&P 500 sector when sectors are trading independently, or the broad index when sectors are moving together on a common macro driver, rebalanced weekly.

1. Agent triggers

   Runs every week on Monday at 11:30 AM. It also responds to changes in sector movements throughout the week.

2. Computes its signals

   It measures the correlation between eight major stock market sectors over the past month. It chooses between the strongest momentum sector or a broad index fund based on these correlations.

3. Sets the target portfolio

   Each week, it selects one sector or broad index for the target portfolio. The position is fully switched based on the current conditions, with no blending allowed.

4. Executes orders

   Your account trades toward the target, sells before buys, inside the platform's risk rails: stop-loss and daily loss limits you control.

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