Q Fund Model Strategy

Our Core Model Strategy: Rules-Based Growth with Built-In Risk Management

We don’t try to predict the market. We follow rules that tell us when to be aggressive, defensive, or in cash.

The Philosophy

Evidence over emotion.

Markets move in cycles. The model is designed to participate when evidence supports growth, shift toward broader market exposure when leadership changes, and move to defense when risk signals deteriorate.

Simple Process

Three steps. One disciplined decision.

The technical work happens behind the scenes. The client-facing idea is simple.

1

Measure momentum

Compare which market exposure has stronger recent evidence.

2

Confirm trend strength

Check whether the trend is healthy enough to act on.

3

Allocate with discipline

Move to QQQ, SPY, or cash based on the rules — not headlines.

Plain-English Labels

What the model can own.

Each allocation has a job. The model rotates based on the evidence available at the time of review.

Q

QQQ = growth mode

Used when growth leadership and trend confirmation are favorable.

S

SPY = broad market mode

Used when broad market exposure shows stronger evidence.

$

Cash = defense mode

Used when risk signals do not support owning market exposure.

Historical Strategy Allocation

What This Means For You

A growth strategy with a defensive playbook.

↗

Participate in growth

Designed to stay invested when evidence favors market participation.

↓

Reduce severe drawdowns

Designed to step away when risk conditions worsen.

⚖

Use discipline

Rules reduce the temptation to react emotionally.

✓

Rebalance on evidence

Decisions are based on signals, not headlines or predictions.

Model Results

Historical metrics at a glance.

These figures are historical/model outputs and should be discussed as illustrative, not guaranteed.

Annualized Return
23.04%
SPY 10.02% · QQQ 14.09%
Annualized Volatility
8.47%
SPY 18.87% · QQQ 21.42%
Maximum Drawdown
-23.57%
SPY -55.19% · QQQ -53.40%
Sharpe Ratio
2.48
SPY 0.42 · QQQ 0.56

Drawdown Defense

Lower bars indicate better downside protection in the model period.

Growth Comparison

Illustrative growth of $100,000 from 2004–2024.

Behind the Scenes

Technical rules are available — but not the first thing clients see.

For clients who want the deeper mechanics, the signal logic is still here in expandable sections.

Momentum calculation

Relative momentum: Compare the total return of QQQ and SPY over a specified period.

Momentum = (Close Price today / Close Price n days ago) - 1

Optimized momentum window: 9 months / 189 trading days.

RSI confirmation
  • • Calculate RSI using a 14-day window.
  • • RSI upper threshold: 75.
  • • RSI lower threshold: 35.
MACD confirmation
  • • Short window: 9 days.
  • • Long window: 18 days.
  • • Signal window: 7 days.
  • • MACD above its signal line indicates a bullish confirmation.
Allocation rules
  • • QQQ: QQQ momentum is stronger than SPY, positive, not overbought, and MACD confirms.
  • • SPY: SPY momentum is stronger than QQQ, positive, not overbought, and MACD confirms.
  • • Cash: Momentum is negative or indicators do not align.
  • • Rebalance based on the model rules and available evidence.
Client-Safe Framing

Rules do not eliminate risk. They create discipline.

This is a model strategy. It is not a guarantee of performance. Past or hypothetical results do not predict future results.