This strategy uses market signals to help us exit the market and move to cash when the probabilities are higher that we will experience a larger loss and remain in the market when the probabilities indicate a greater chance that the market will continue gaining. This strategy tends toward long-term or intermediate-term signals and will generally stay invested a majority of the time.

This strategy uses short-term market signals and utilizes different segments of the stock, bond, or alternatives markets. Trading rotates between investments and cash and may use leverage when invested. The strategy tends to look at short-term indicators, often daily or weekly, and trade more frequently.

This strategy does not trade very often and looks at stocks that have certain characteristics such as high quality, high dividend, low volatility, momentum, etc. These transactions tend to occur only when individual stocks no longer meet the trader’s criteria or another stock ranks higher in that factor and replaces the old stock. Even though most people are unaware, many index funds fall into this category based on size or capitalization factors.

This strategy invests in individual stocks that the analyst believes have strong fundamentals and hold the potential for long-term appreciation based on the strength of the company.