Strategies/ETF Momentum

ETF Momentum

Momentum Strategy

ETF Momentum uses a proprietary A5 momentum filter to rank all major sector ETFs weekly. The strategy invests only in ETFs whose price is above their 10-day moving average AND whose 20-day return exceeds SPY — the dual filter ensures we only hold sectors in confirmed uptrends. Capital concentrates in the top 1–3 qualifying sectors (capped at 70% per theme) with remaining cash parked in SGOV. The strategy went live in a $1,000,000 Alpaca paper account on March 20, 2026 and rebalances every Monday at 9:45 AM ET.

High RiskMomentumSector rotationLive Alpaca account

What it does

Every Monday it scans major sector ETFs, picks the 1–3 with the strongest recent momentum, and moves all cash into those. When nothing qualifies, it sits in short-term Treasuries (SGOV).

Best for

Investors who want to ride sector trends rather than holding a fixed mix. Works best in trending markets; expect to give back gains quickly when momentum reverses.

What to expect

High volatility and concentrated positions — some weeks you could be 70% in a single sector. This is a paper account running with $1M, not real money.

Typical Holdings (Dynamic Strategy)

XLK 28%XLE 18%DBC 12%GLD 15%QQQ 17%SGOV 10%

Holdings shown are representative. The live bot selects tickers dynamically each week based on momentum signals.

Live Account Performance

● Real Alpaca Paper Account

Normalised to $10,000 start. Data from live Alpaca paper account — reflects real orders, real fills, and real risk management decisions.

Backtest Simulation · Not Real Trading

5-Year Historical Simulation

Simulated using representative fixed weights — the live bot selects holdings dynamically, so actual results differ.

How It Actually Trades

Pro

Analyze a portfolio matching this strategy

Enter your tickers and see a full 5-year breakdown.

Live chart: real Alpaca paper account data. Simulation chart: historical price data from Yahoo Finance with representative fixed weights. Past performance does not guarantee future results.