ROT 1.0

The ROT 1.0 is a short-term swing trading system based on a technique called rotational trading. The system is 100 % mechanical and generates between 400-500 signals per year.

The ROT 1.0 is fully developed and adjusted for trading the American stock market, every day scanning over 3000 different stocks. The system generates both long and short signals and has an exceptional backtesting record. The fundamental idea behind the system is to rank and rotate stocks on the basis of trend and momentum. The ROT 1.0 is an extraordinary system for the relatively active short-term trader.

ROTATIONAL TRADING

Rotational trading is a technique based on the premise to rotate stocks all the time so only the top N issues ranked according to a predetermined score are traded. The technique is quite popular when it comes to trading mutual funds, but we have found it very useful for short-term swing trading as well. In the ROT 1.0 we have chosen to rotate a maximum of 5 stocks at the same time.

THE ALGORITHM

The ROT 1.0 is a quite dynamical trading system. The algorithm is constructed so that it uses the overall market trend in order to launch 1 out of 6 different systems which the whole ROT 1.0 is built upon. Depending on the current market trend, the system ranks all stocks on the basis of trend, volume, volatility and momentum to find the most preferable stocks to trade. If the market trends on the upside, the system only generates signals on the long side and vice versa.

THE INDICATORS

The ROT 1.0 is based on a number of self constructed indicators, as well as some more common and traditional indicators. Besides of a couple of trend identifiers, the system is mostly built around a number of volume-, momentum- and volatility indicators. The use of these indicators then enables the system to search and find the most preferable stocks to trade.