What are we looking for?
Canadian-listed equities that are attractive from a trend-following and quantitative perspective.
This strategy seeks to detect established bullish patterns, such as triangles, flags, or head and shoulders formations, that signal potential breakouts above resistance levels. By targeting stocks near their 52-week highs, the strategy aims to select Canadian stocks that are already exhibiting strong price performance, increasing the likelihood of sustained upward trends. Investors employing this strategy take positions when the price breaks out from these patterns, riding the trend as long as it maintains its momentum. This approach aims to maximize gains while managing risk by following predefined exit points in case the trend reverses.
The screen
Our initial screening process targeted U.S. stocks with a market capitalization exceeding $1-billion to focus on more stable, less-volatile stocks.
A trend-following…
