Sector Momentum Rotational System
Hold the equity sectors with the strongest trailing returns and drop the laggards — industry momentum as a monthly rotation.
Definition
Sector Momentum Rotational System refers to industry momentum as a monthly rotation. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When industry momentum as a monthly rotation shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what sector momentum rotational system is saying. If industry momentum as a monthly rotation moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Sector Momentum Rotational System: what would falsify the current reading in the next window?