Sector rotation is a well known and comprehensively fleshed out trading strategy.
The leader/ lagger aspect is similarly well documented and understood.
The main feature, in my opinion is its unlimited capacity to handle large sums of capital. 4% a week is standard for profit making and the advancing price cycle that is very effective is an average of 4 1/2 weeks.
What lends reliability to any trading is the quality of the universe that is selected for trading.
What makes a leader in a given sector compared to a lagger is largely based on the float of the two types of stocks in one's universe.
If a person does not have the means to exclude unreliable stocks from his sector rotation universe, then using any set of sector rotation rules will turn out to be unworkable.
Both EPS and RS values as divided into 100 parts cover several of the bases for selecting the laggers as tradable.
Observing sector rotation is important to learn as a part of any trading focus or strategy. Some sectors are rising in promenance and some are declining. Just before stocks in a given sector take off, it is very important to have the sector in view among the important players. Most of the financials provide good information on this and using such on Excel works quite well if you want it done for you on a demand basis.
The leader/ lagger aspect is similarly well documented and understood.
The main feature, in my opinion is its unlimited capacity to handle large sums of capital. 4% a week is standard for profit making and the advancing price cycle that is very effective is an average of 4 1/2 weeks.
What lends reliability to any trading is the quality of the universe that is selected for trading.
What makes a leader in a given sector compared to a lagger is largely based on the float of the two types of stocks in one's universe.
If a person does not have the means to exclude unreliable stocks from his sector rotation universe, then using any set of sector rotation rules will turn out to be unworkable.
Both EPS and RS values as divided into 100 parts cover several of the bases for selecting the laggers as tradable.
Observing sector rotation is important to learn as a part of any trading focus or strategy. Some sectors are rising in promenance and some are declining. Just before stocks in a given sector take off, it is very important to have the sector in view among the important players. Most of the financials provide good information on this and using such on Excel works quite well if you want it done for you on a demand basis.