Jupiter Strategy

A long-only stock strategy that identifies stocks exhibiting bullish momentum characteristics through composite scoring of technical signals.

What This Page Covers

This page explains the Jupiter momentum strategy. You'll learn about the composite scoring system, how stocks are evaluated on bullish bar patterns, new highs, and volatility, and how the portfolio is constructed from the top-ranked stocks.

1

Strategy Overview

Core Concept

Jupiter is a long-only stock strategy that identifies stocks exhibiting bullish momentum characteristics: strong price bars, new high patterns, and low volatility. It combines multiple technical signals into a composite score to find stocks poised for continued upward movement.

Scores stocks on bullish bar patterns
Identifies new high breakouts
Favors low-volatility trending stocks
Combines signals into a composite ranking

Current Configuration

Stock UniverseDynamic Universe
Price FilterProprietary Range
Volume FilterLiquidity Threshold
ScoringComposite Multi-Factor
Portfolio SizeConcentrated
RebalancingDaily at open
2

Composite Scoring

How Stocks Are Scored

Each qualifying stock receives a composite score based on multiple bullish momentum factors. The score combines bar pattern analysis, new high detection, and volatility assessment to identify stocks with the strongest upward momentum characteristics.

What We Measure

  • Bullish bar patterns (strong closes near highs)
  • New high frequency over multiple timeframes
  • Low realized volatility (smooth trends)
  • Price momentum relative to moving averages

How Scores Are Used

  • Stocks ranked by composite score
  • Top-ranked stocks selected for portfolio
  • Daily re-scoring ensures freshness
  • Equal-weight allocation across selections
3

Universe & Selection

Dynamic Universe

Jupiter dynamically filters from thousands of stocks each day. Stocks must meet price and volume thresholds to qualify, ensuring adequate liquidity for position sizing.

This dynamic approach means the strategy can discover new opportunities as stocks meet the qualification criteria and naturally avoids stocks that have become illiquid or too expensive/cheap.

Stock-Level Selection

Unlike sector rotation strategies, Jupiter evaluates each stock individually. There is no sector grouping — every qualifying stock competes directly on its composite score.

This pure stock-level approach ensures the portfolio is always composed of the individual names with the strongest bullish momentum characteristics, regardless of which sector they belong to.

4

Trade Execution

T+1 Execution Model

All trading signals are generated at market close (Day T) and executed at the next day's open (Day T+1). This ensures realistic backtesting without look-ahead bias.

1

End of Day T: Score & Rank Stocks

After market close, compute composite scores for all qualifying stocks based on bullish bar patterns, new highs, and volatility. Rank all stocks by their composite score.

2

Day T+1 Open: Execute Trades

At market open, sell positions that are no longer top-ranked and buy new top-ranked positions. Equal-weight allocation across all positions.

Important Disclaimer

All performance figures are based on historical backtesting and are hypothetical. Past performance does not guarantee future results. This momentum strategy is designed for bull markets with clear directional trends — it can experience significant drawdowns during bear markets or prolonged sideways conditions. The backtest assumes perfect execution at open prices with no slippage. Real-world trading will differ. This is educational content, not investment advice.