Confluences

Quantitative Equity Model Confluences

The Quantitative Equity Model serves as a top-down macro filter that pairs perfectly with bottom-up technical strategies.

• Trend Following & Momentum: Use the model to dictate position sizing. When the model suggests 100% allocation, take full-sized trend-following entries. When it suggests 20%, drastically reduce your sizing or widen stops.
• Mean Reversion: During severe drawdowns, the model will flash crisis warnings (Buy Zones). Look for traditional mean-reversion signals (like RSI divergence or lower Bollinger Band touches) within these Buy Zones to identify structural market bottoms.
• Sector Rotation: Pair the model's macro allocation with Sector ETF Flows. If the model signals a high equity allocation, rotate capital specifically into the sectors showing the strongest institutional inflows.