The Tier 1 Steady MV system is one of the newest additions to the Trade 4 Cash line-up. This system trades only stocks appearing on the FolioFn Tier 1 list. It’s most attractive feature is its combination of low volatility and above average return. Tier 1 Steady MV is an excellent system for traders who are more risk-averse, or who are looking to add some stability to their portfolio without sacrificing return.

System Description and Objectives

The Tier 1 Steady MV system has two objectives – steadily build equity during bull markets, and sit quietly with cash during bear markets. It does not care for extended draw-downs, and is quick to sell losers before they become a problem for the portfolio. Since this system does not trade during bear markets, it is not recommended for continuous monthly income. Its best use is to build equity, or to supplement income during bull market periods.

This system only trades stocks appearing on the FolioFn Tier 1 list. Hence, traders can trade it at FolioFn using window trades, where annual commission costs can be greatly reduced. (Please note, however, that the published system statistics do not account for window trades. They are based only on opening and closing prices.) In addition, Tier 1 Steady MV requires higher liquidity than other Trade 4 Cash systems. All stocks purchased must meet a minimum average daily dollar volume [(number of shares traded) x (price per share)] of $1,000,000. Other systems allow stocks with average daily dollar volumes as low as $150,000.

Tier 1 Steady MV uses the Trade 4 Cash fundamental/technical ranking system to find stocks, and only purchases ones that are ranked in the top 0.5% of all U.S stocks. It sells a stock once its rank value falls below strict threshold levels.

This system typically holds a portfolio of 6 to 7 stocks. It trades fairly often, and occasionally trades the same stock repeatedly over a short period of time.