Two Strategies for Longer-Term Investors to Pay Attention To

Key points

• Both the Multi-Index Trading Model and the Multi-Index Trading Model With Fundamentals are currently flashing "Long SPY" signals
• These trend-following strategies historically generate significant outperformance by rotating to cash during severe bear markets, drastically reducing maximum drawdowns.
• Blending these models into a single portfolio via the Strategies Basket mitigates the psychological friction of binary "all-in or all-out" positioning while maintaining a robust historical CAGR of nearly 15%.

Two quantitative strategies longer-term investors should monitor

Each night, I review our quantitative models to identify structural shifts in the broader market regime. By navigating to the Strategies page under our tools section, two specific systems stand out for longer-term investors: the Multi-Index Trading Model and the Multi-Index Trading Model With Fundamentals. Click the button on the right to run a backtest using our BacktestEngine 2.0.

While there are no absolute guarantees in the equity markets, history dictates that when both of these models flash a "Long SPY" signal, longer-term traders should adjust t