Faber Sector Rotation

Proven 12-month sector momentum: top 3 + absolute momentum filter

Faber Sector Rotation 3Y

Total Return

+16.8%

Sharpe Ratio

0.16

Max Drawdown

-16.4%

Win Rate

51.7%

Alpha

-3.3%

Comp. Score *

0.12

Risk Parameters

Max Allocation3.5%

Stop Loss19.7%

Take Profit5.0%

Max DD Tolerance16.4%

Rebalanceweekly

Execution Guidance

Order TypeLimit

Entry Rule0.5% below current price for buys

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 1-2 weeks to average in

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
XLY	BUY	23%	18.7% below entry	4.7% above entry	3.7%	TV YH
XLF	BUY	18%	14.8% below entry	3.8% above entry	4.7%	TV YH
XLC	BUY	17%	14.0% below entry	3.6% above entry	4.9%	TV YH

▶ For Passive Investors (Buy & Hold)

Marginal long-term returns. Treat as tactical, not core. Small allocation (<2%) if any.

Avg 5Y Return

39.2%

Avg 5Y Sharpe

0.24

Avg 5Y Max DD

-25.1%

10Y Return (2015-2024)

72.4%

10Y Sharpe

0.18

10Y Max DD

-28.5%

HODL Composite

0.23

Windows Tested

Consistency

82%