Welcome to the NASDAQ 100 All Stars Trading System

This page is the best place to begin. Here you’ll find:

• A brief overview of what this trading system is all about
• Precise instructions on how to trade the model
• A tool for you to track your trading
• And more!

Introduction to the NASDAQ 100 All Stars Trading System

The NASDAQ 100 All Stars system uses trading signals generated by a quantitative strategy that MarketGauge developed that combines the concept of trend strength and ranking. The model begins by ranking the NASDAQ 100 components based on our proprietary Trend Strength Indicator (TSI). The basic idea is that we will initiate equal-sized trades at the beginning of each month in the top 5 NASDAQ component stocks based on TSI scores.

Once we are in a position, there are three ways we can exit: 1) We have three profit targets and and a final resting profit stop. 2) There is an initial stop loss that is moved to breakeven once we reach the first target. 3) We can exit based on a “rotation” if the stock falls sufficiently out of the top 5 on the final day of the month.

Quick Start: Starting A Portfolio

You can start at any time. The actual model only enters new trades on the first day of the month based on signals generated on the last trading day of the prior month.

The best way to start following the model is to use the calculator and instructions found on the “Tools” page. The calculator will show you the real-time percentage allocation of the model portfolio. You can use this to create your own portfolio that mirrors the model portfolio.

The website page “Model Portfolio” will show you the current five positions and their stops and next targets.

When you initially put on the position, you can enter hard stops at the initial stop loss and first profit target. The stop loss will be for an exit of 100% of the position while when we reach a new target, 25% of the original position will be sold.

If a position gets stopped out during the month, that position slot will stay in cash until the start of the following month. When the first target is reached, we will move our stop loss to breakeven on the remainder of the position and issue a new next profit target. After a target is reached, the “Open Positions” will be updated to reflect the new nearest stop and target.

For model equity purposes, when the model rotates out of one position into a new position, the initial capital used in the new position is equal to 20% of the total portfolio. This effectively self-rebalances the model portfolio slots over time as gains or losses are proportionately allocated to the new positions.

Tracking Your Trades

We have created a free Excel spreadsheet that you can download and use to track your trades. The spreadsheet provides powerful tools to help you determine position sizing and track the performance of your trades based on your own entry prices and position sizing. The tool can be found on the “Trade Tracking Tool” link on the right side navigation bar in the members area.

Maintaining A Portfolio

Shortly after the close of every trading day, the website will be updated with the most recent trade data (closing price, return, etc…). Anytime a trading event occurs, you can expect an email or text alert updating the change. On the final trading day of each month, the model will calculate and issue any position changes if necessary. There might be months where all five of our positions could change and, likewise, there could be months where none of our five positions change.

Trading Alerts & Position Updates

There are two types of potential updates. On the final trading day of each month the model will evaluate the NASDAQ 100 and determine if there are any necessary position changes. We call these position changes a “rotation.” You will be notified of these changes in a special monthly email that goes out on the last day of each month.

The other type of update occurs when one of our positions either reaches a target or gets stopped out during the month. When this happens a special notification email and text will be sent out.

For both of these types of updates, the actual update can be found on the “Position Updates” page. Navigation to this page is found in the right-side navigation panel.

Executing Protective Stops and Profit Targets

The initial stop loss levels are 15%. When the model hits a stop, it sells out of the full or remaining position in that stock.

When any of the positions hit the first target, it sells 25% or one-quarter of the initial position. At the second target, the model sells an additional 25% (or 1/3rd of remaining). At the third target, the model sells another 25% (or ½ of the remaining). There is no final target, though we will occasionally add another target if the position has moved quite a bit from the last target. The model will exit the final remaining 25% when the model gives us a signal to exit or rotate out.

Additionally, after the model reaches any profit target, it moves up the trailing stop. After the first target (20% from entry), the stop is moved to the break-even entry price. After the second target (35% from entry price), the stop is moved to the first profit target. After the third target (65%), the stop is moved to the second profit target.

We will also occasionally send out alerts to take profits early ahead of the published target.

Weekly Model Updates and Position Summary Email

Every weekend, we will send out an email that will summarize the model and market action for the week. We will also include a position summary for each of our five positions.

Managing Your Text Alerts

If you would like text alerts in addition to email alerts, simply go to the “Manage Mobile Alerts” link in the top navigation panel on this page and register your phone number.

Monitoring the Strategy Portfolio

You can easily see any recent trade alerts in the “Position Updates” section of the website. This page is updated anytime a trade alert is issued.

The “Model Portfolio” area of the website tracks the current open positions, recently closed positions, historical performance metrics, and daily changes in the top 25 ranked NASDAQ stocks by TSI. The data in this section is updated after the close of the market each day.

The “Tools” page shows you the real-time portfolio allocation which can be used to setup your own portfolio in a similar fashion. It also has a downloadable trade tracking Excel tool.

We will also have monthly webinars where we will discuss our current holdings or new positions and answer any questions that our members might raise.