“The trick in investing is just to sit there and watch pitch after pitch go by and wait for the one right in your sweet spot. And if people are yelling, ‘Swing, you bum!,’ ignore them.”
– Warren Buffett
RULES-BASED STRATEGY
Over the past five years, I have focused on rigorously studying the stock market and formulating a disciplined, rules-based swing trading system that relies 100% on technical analysis. We’re not guessing or hoping, we’re just responding to what the market is actually doing. This methodology is designed to remove emotion from decision-making, adhering strictly to predefined entry and exit signals. Each position is capped at 5% of the portfolio to manage risk, and we focus mainly on stable index options. When the market’s bullish, we buy calls and sell puts; when it’s bearish, we buy puts and may sell covered calls. If there’s no clear opportunity, we’re comfortable sitting in cash, maybe selling puts.
While the system is straightforward and can easily be managed by others when necessary, it is not infallible. Occasional losses are inevitable, but the objective is for gains to consistently outpace losses over time. Additionally, we’re always retesting and trying to improve each strategy we develop, to squeeze every ounce of alpha we can from the market.
BACKTEST METHODOLOGY
To validate our strategy, I conducted a comprehensive backtest spanning 15 years (2010–present). While the specifics of the strategy remain proprietary, the testing process was transparent and methodical. I identified all historical buy and sell signals according to our indicators, documenting each relevant date of entry and date of exit. Using ThinkOrSwim’s OnDemand feature, I simulated trades at the same time each day to eliminate timing bias. Each trade followed consistent parameters for option delta and expiration. Positions were closed strictly on sell signals, regardless of profit or loss, and no discretionary decisions were made. If a position was a losing trade at the time of the sell signal, the position was left open until the next exit signal, or allowed to expire at expiration. This disciplined approach ensures objective performance measurement and replicability.
The stock market has averaged 10–12% annual returns over the long term. Our goal is 2-3% per month, or 20-30% per year. We ride the waves of momentum, use leverage and options when the conditions are right, and we focus on protecting your principal, to be ready for the next opportunity.
Ready to invest smarter in film?
Join us and put your money to work in a way that’s strategic, disciplined, and built for the long haul. Let’s make great movies – and great returns – together.
If you’re ready to be part of something great,let’s chat!