Toronto-based James Leigh believes that, as a trader, you absolutely need to let most opportunities pass you by. Most traders believe that they need to do everything, when the opposite is true. “Slow down and think long-term” Leigh urges. “It’s said that the deal of a lifetime comes around every 90 days” added guest host and show producer Paul Roberts.
James Leigh’s popular C2 strategy, Correlation Factor, is a fully automated, sector rotation strategy that picks 5 sectors of favorable strength and stability. It is a long-only and thus “IRA-friendly” strategy that trades only U.S. equities, excluding stocks in the energy and minerals sectors as “those are too tied to the commodities.” Over time, James has found some fascinating behavior in the correlations and trends among various sectors.
In Episode 12 of Top Trader Radio, we dive into why James believes his strategy has outperformed the market, the benefits of a sector rotation strategy, and how to keep your losses at a minimum.
Everyone wants to invest in something long-term…but, before it becomes a good long-term trend it needs to be a good short-term trend.
Trade Leader, Correlation Factor
James Leigh has been running his own Software Consulting business for the last ten years specializing in alternative databases. He was inspired after reading Keith Fitschen’s book “Building Reliable Trading Systems” about “tendency analysis” to find the path of least resistance for his core portfolio holdings. Using his background in data analysis and machine learning, he discovered some interesting correlations between market sectors that he was able to take advantage of in Correlation Factor on Collective2.