Leveraged Momentum is a proprietary investing system that seeks to beat the market over the long term by buying after prices have bottomed out and are just starting to increase (buy low) and selling after prices have peaked and are just starting to decrease (sell high). By selling after prices start to decrease, the system also seeks to avoid most of the losses buy-and-hold investors experience during corrections, bear markets, and other declines.
Leveraged Momentum consists of the Optimum Mix of four strategies: FANGA Momentum, Leveraged Trends, Leveraged Bands, and Leveraged Index. The Optimum Mix is determined by calculating the percentage of the overall balance that should be in cash and in each ETF or stock based on the recent performance of those four strategies relative to each other, the current positions indicated by each strategy, and the current overall performance of the strategies. While the Optimum Mix may underperform an individual strategy during some periods, the Optimum Mix tends to be more diversified, tends to outperform during bear markets, and tends to provide more consistent performance over longer periods that include bear markets.
The Leveraged Momentum Update newsletter is sent every sixth trading day. The Optimum Mix and the FANGA Momentum and Leveraged Index strategies require evaluation (and any indicated trading) on that sixth trading day. The Leveraged Trends and Leveraged Bands strategies require evaluation (and any indicated trading) every trading day if implemented individually (outside of the Optimum Mix).
Pete Nikolai is the developer of the Leveraged Momentum investing system and the author of the Leveraged Momentum Update newsletter. He also is the Director of Publishing Services for HarperCollins Christian Publishing. He has been in the book publishing business since 1991, working in a variety of roles including sales, product development, and management.
He lives in Nashville with his wife Amelia and enjoys reading and writing while walking on his treadmill desk, P90X3, traveling, hiking, and volunteering as a budget coach with Habitat for Humanity.