The most proven aspect of trading/investing is that asset prices trend over the long run. This algorithm looks for stocks in weekly trends and moving higher. Our job is to hop on the trends we like for this list and ride them until they end.

The win rate on this strategy is less than 50/50 with a 49% win rate; however, when we are right, stocks move on average 17% gain, and when we are wrong, we lose an average of 6%. This is the power of trend following wherein the game we are playing is to hold on to the winners as long as possible.

The algorithm is tested using the following rules:

1. Buying the stock on the Mondays open

2. Buying 1/10th of your portfolio into each stock

3. Holding until a break of EITHER the 50 period EMA or the stock makes a new 4-week low.

As always, we never want to follow a system without applying human knowledge and analysis. I will trade them by buying on a break of some trend that has changed in my time frame. That will be different for everyone. However, knowing the major level and holding while these stocks have a provable chance to run puts the odds on our side, and our human analysis further strengthens our position.