Magnificent 7 rotation
Every Friday it rotates into the 3 with the best 12-week momentum. It's cloned turned off in your practice account so you can review it before turning it on.
How it works
- 1It triggersAccording to its frequency: weekly.
- 2It reads the dataPrices and signals for 7 US stocks.
- 3It evaluates the ruleEvery Friday it rotates into the 3 with the best 12-week momentum.
- 4It acts and notifiesIt trades in practice or sends you the alert, depending on the template.
About this strategy
The Magnificent 7 are the seven big US tech stocks: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla. Momentum strategies rest on a well-studied idea: what has done best over recent months tends to keep doing well for a while.
Every Friday the template ranks the seven by their 12-week return and holds the top three in equal weights. If one drops out of the top three, it sells it and buys the one that came in.
Its main risk is concentration: seven companies in the same sector that tend to move together. It also suffers in sharp market reversals, when momentum flips all at once.
The workflow
Click a node to see what it doesCustomize it before cloning
What you'll receive
Questions about this strategy
A strategy that buys the assets that performed best over a recent period and sells the worst, betting that the trend continues.
Yes. When you clone it you can change the list of stocks, how many it holds and the lookback used to measure momentum.
Once a week, on Fridays. It only rotates when one of the top three changes, so many weeks there are no trades.
It's cloned in practice. Try it for a few weeks and move it to real money only if you're convinced, with your risk limits.
Learn before you switch it on
- How to backtest a trading strategy without fooling yourselfWhat backtesting is, how to test a trading strategy on historical data and the mistakes that inflate results: overfitting, look-ahead bias, fees and slippage.
- How to build a trading bot without codingA step-by-step guide to building a trading bot with no code: turn your strategy into rules, backtest it and run it on paper before you risk real money.