A no-rebalance momentum strategy that lets winners run. Same 7-factor scoring as Gemini, but positions are never resized while held.
This page explains the Vega momentum strategy framework. Vega is Gemini's no-rebalance variant — it uses the same 85-stock universe, the same 7-factor momentum scoring, and the same QQQ market filter. The key difference: positions enter at equal weight but are never resized. Winners are allowed to drift up, giving the strategy significantly higher returns with slightly more drawdown.
Vega is a buy-and-hold momentum strategy. Like Gemini, it identifies the strongest stocks using a proprietary 7-factor scoring algorithm. Unlike Gemini, Vega does not rebalance positions daily — once a stock enters the portfolio at equal weight, it stays at whatever size the market gives it until it falls out of the top N.
In Gemini, positions are rebalanced daily to maintain equal weight. If one stock doubles while another is flat, Gemini sells the winner and buys the laggard to restore equal allocation. Vega does the opposite — it lets winners grow.
Like Gemini, Vega uses QQQ (Nasdaq 100 ETF) as a market regime indicator. When QQQ is in an uptrend, new positions can be opened. When QQQ is in a downtrend, no new stocks are purchased.
This filter is identical to Gemini's — it helps avoid deploying capital during market corrections while allowing existing positions to run.
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.
After market close, calculate 7-factor momentum scores for all stocks. Determine which stocks to enter or exit based on top-N ranking.
At market open, execute exits first to free up capital. Then enter new positions at equal weight. Existing positions are never touched — no rebalancing.
New positions enter at equal weight across all holdings. Once entered, positions are never resized. A stock that doubles becomes a larger share of the portfolio naturally. This lets momentum compound without interference.
All performance figures are based on historical backtesting and are hypothetical. Past performance does not guarantee future results. The no-rebalance approach can lead to concentrated positions and higher drawdowns than Gemini. The backtest assumes perfect execution at open prices with no slippage. Real-world trading will differ. This is educational content, not investment advice.