Sector Monthly Rotation

Top 3 of 11 sector ETFs by 3-month momentum. 13.94% CAGR

Total Return

+45.3%

Sharpe Ratio

0.74

Max Drawdown

-13.2%

Win Rate

52.1%

Alpha

-9.8%

Comp. Score *

0.10

Risk Parameters

Max Allocation8.8%

Stop Loss13.2%

Take Profit6.7%

Max DD Tolerance13.2%

Rebalanceweekly

Execution Guidance

Order TypeLimit

Entry RuleBuy 0.5% below market in uptrend.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 1-2 weeks.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
XLV	BUY	15%	8.5% below entry	4.3% above entry	13.7%	TV YH
XLE	BUY	23%	12.6% below entry	6.4% above entry	9.2%	TV YH
XLP	BUY	13%	7.2% below entry	3.6% above entry	16.2%	TV YH

▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -28% drawdown to return 17% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return

13.0%

Avg 5Y Sharpe

-0.06

10Y Return

17.1%

10Y Sharpe

-0.11

HODL Composite

0.06

Consistency

50%

Suitable for passive