The Systems & Forecasts Relative Strength System
is a trading model which isolates the strongest performers of a universe of hundreds of funds which we trade.In order to select the candidates for purchase under this section of the model
portfolio, we divide the universe of funds into ten groups based on the extent to which each fund has undergone broad price swings as measured against a baseline index. We then rank these funds
by past performance over various time frames, from one month to a year, incorporating both long and short term strength measurements. Selections are made from the highest ranking funds in each
volatility group. Upgrades to the Relative Strength Model At
the end of each month, we re-rank our entire universe to develop a new top decile (top 10%) from which we display a Systems & Forecasts Top 50 Relative Strength Roster.
If the three funds currently held in the Relative Strength portion of our model portfolio fail to appear in the top 10% of the ranking each new month, we redeem them. On August 1 we upgraded one of the three Relative Strength positions in our model portfolio based on a new ranking. The chart listed on pages 7 of the Newsletter show recent and historic performance of the entire roster, for your your review.
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