Bullish Cross runs four theoretical model portfolios to demonstrate the different ways one can practically execute a particular investment thesis for the purpose of outperforming the S&P 500. These portfolios have absolutely nothing to do with one another. They’re completely unrelated and based on completely different trading strategies. Please keep in mind that Bullish Cross is not an advisory firm and as such these portfolios are for educational use only. Furthermore, before making any investment decision please consider the suitability to your circumstances and consider seeking advice from your own personal financial advisor. These portfolios do not consider the question of allocation and are highly speculative strategies. Please read the Terms and Conditions of Use before viewing or analyzing these model portfolios.
The first model portfolio is called the BC Alpha Model Portfolio and is a general equity counter-trend portfolio. It’s a model that seeks to get ahead of the next broad intermediate-term trend in the equity markets. In this sense, it is inherently a contrarian portfolio. The positions taken are generally against the current trend as the portfolio does attempt to forecast the next big move in U.S. equities rather than investing based on the current trend. The portfolio is based on getting ahead of tops and bottoms in the market.
The second model portfolio is our SPY Model Portfolio which has been around for just about 2-years and has sustained a near 90% win-rate during that period. The SPY Model basically provides a model for trading the broader market through the SPY ETF with an attempt to generate significant alpha over and above the returns of the market. The SPY Model Portfolio, like the BC Alpha Model, is also a contrarian indicator. It is also an intermediate-term portfolio in the sense that the portfolio positions based on the next expected big trend in the S&P 500. The SPY model does go long in downtrends and goes short in uptrends with an aim at catching the next big move.
The third model portfolio is the BC Trading Portfolio. Unlike the Alpha Model and SPY Model Portfolios, the BC Trading Portfolio is both a contrarian and trend-trading portfolio. It may make short, intermediate or long-term trades based either on momentum/support/resistance theory (trend-trading) or based on contrarian theories (overbought/oversold/stock formations).
BC Model Portfolios & Trading Models
1. The Bullish Cross Alpha Model Portfolio
2. The Bullish Cross SPY Model Portfolio (Contrarian)
3. The Bullish Cross Trading Portfolio (Contrarian + Trending)