What are core trades?

Core trades are longer-term trades that are bought and held for a duration of time according to the rules within their respective investment model.

Core trades are made within a portfolio according to the investment model you are participating in. These types of trades are usually bought and held for as long as that position is trending. In the faith-based models, for example, there would be one core trade for each of the top 50 positions. So long as the position remains in the top 50, the core trade will be held. Once the position loses momentum and drops from the top 50 we will seek to sell out of the position.

Core trades are generally made alongside tactical trades. Unlike the tactical trades, the core positions will not be bought and sold intraday. In general, of the cash being used for any given position (stock, etf, etc.), 50% will be used on core trades and the other 50% will be used in tactical trades. However, this can depend partly on the stock itself, the current environment, and desired impact.

Important Disclosures Regarding Core Investment Strategies

Core investment strategies are based on model-driven rules that seek to identify longer-term trends; however, market trends and momentum signals are not always reliable and may result in delayed or inaccurate investment decisions. Positions may decline in value before they are sold, and there is no guarantee that losses can be avoided.

These strategies may underperform other investment approaches, including passive or buy and hold strategies, depending on market conditions. Allocations between core and tactical positions are not fixed and may vary over time.

All investing involves risk, including the possible loss of principal. The information presented is for general informational purposes only and should not be considered personalized investment advice.