Overview
The Quantmatix system identifies Medium-Term Reversals—points where a stock’s trend shows exhaustion and potential reversal. These signals stem from the proprietary Q-Score framework, which integrates technical, momentum, and trend indicators across multiple timeframes. This strategy is intended for long-only trades aiming to capture medium-term upward moves after a confirmed reversal.
Identifying Trades
From the Quantmatix dashboard, select Screener and Medium Term.
Filter your universe to Equities and United States, then apply the Green Score Reversal Icon filter.
Next, in the Hit Rate column, select Greater Than 70 to highlight trades with a >70% probability of reaching Target 1.
You now have a list of potential trades to explore with a >70% likelihood of success.
In this case we have selected Trade Desk Inc. There is an 81% likelihood that the price will hit Target 1.
Strategy Setup
Entry Signal: Enter long when a Medium-Term Positive Reversal is confirmed. This indicates slowing downside momentum and potential rebound conditions.
Target Price: Set your take-profit at Target 1 —the first upside level projected by Quantmatix based on historical signal data and volatility thresholds.
Stop & Risk Management: Use a trailing stop equivalent to Stop 1’s percentage distance (e.g., 8% below entry). This locks in profits while maintaining controlled downside exposure.
Backtested Results (S&P 500: Jan 2020–Aug 2025)
Trades: 7,314
Average Return: +4.88%
Win Rate: 67.35%
Average Win/Loss: +11.49% / −8.77%
Profit Factor: 2.70×
Average Duration: 27 days
Practical Tips
Check daily for new reversals, confirm with short-term scores, diversify by sector, and track results via your Quantmatix portfolio.
Disclaimer
Past performance is not indicative of future results. The above data is for informational and educational purposes only and does not constitute investment advice. Always consider your individual risk tolerance before making trading decisions.