$500 Portfolio Coaching - Learn to pick stocks in your portfolio using technical analysis.

Click the image above to start. 

Free top 2 patterns + $45 tradebook for intraday trading patterns + options optimal setups. $147 webinar discussing how to implement the top 2 patterns. $750/session one hour coaching to step-by-step learn the process to futures options trading and walk through the exact playbook rules starting with: 

1. How to get started - setting up an account, following the complete strategy -

2. Understanding risk - frameworks from a beginner perspective

3. Introducing profit targets and managing risk levels

4. Start Simulated trading - what to look for in a trade, what time of day to trade, how to double your equity curve ($100,000 -> $200,000 e.g.) in simulated trading.

5. Bridging the gap from simulation to starting live trading.

6. Parsing out your bankroll

7. Understanding your risk tolerance - how much risk you can bet and remain emotionally unaffected. 

8. Remember to go back to small size - e.g. (for example) trading one share - opposed to jumping on options and futures right away. 

9. Avoid pattern day trading by using futures options but understand equities, equity options too and bank roll size needed for each. 

Log in to trade in a small group. Once a week meet with a small group live ($597/session).

Identify patterns + optimal options based on the 'delta' method.

I'll discuss opportunities that relate to the tradebook (playbook) during market hours  (9:30 eastern - 10:30 eastern).

Meet Dr. Matt Lutey

Matt has studied technical analysis and portfolio construction since 2010. Over the last 15 years, he has refined his processes and models, drawing on conversations with mentors and advisors outside the classroom. He received his Ph.D. in Engineering from the University of New Orleans in 2018. He's based out of Atlanta, GA and serves clients locally and nationwide / globally. 

Blending traditional financial planning with modern tools like AI, without losing sight of human judgement. Read more of matts story https://www.drmattlutey.com/about 

About Matt

Matt is a finance PhD (University of New Orleans, 2019) and professor. He builds models that track best performing stocks based on fundamental and technical properties that show the strongest fundamental and momentum properties with a proven track record of out performance. He builds university classes that meet the students at their level and brings them through the material through learning by doing. 

The site is an education platform that shows portfolio strategies that outperform the market historically, recession signals, day-trading strategies, investment courses and financial modeling courses. Key takeaways are: 

• 15 years of research experience and building models that outperform the market. 
• Applications that show the models continue to outperform in real time after publication.
• Data used with point-in-time survivor-bias free estimates from the Center for Research in Security Prices (CRSP) and Fact Set via Portfolio123.com.

Since 2019, I’ve taught undergraduate and MBA-level finance courses at multiple universities, covering corporate finance, investments, valuation, and two student-managed investment fund programs. My goal is to bridge the gap between academic theory and practical finance—helping students think like practitioners while grounding real-world decision-making in research-based principles.

 What would you do if you knew which stocks were about to rise—before they did?

In my classes, we explore that question through hands-on projects that replicate the methodologies of the world’s most successful investors. Students learn to build and test portfolios based on proven frameworks and to identify the characteristics that stocks often display before making major upward moves.

 This website serves as an intersection between practical finance and academic research. It’s built for those who’ve ever read a finance paper and thought, “How can I rebuild that study—and capture the benefits of running it in real time?”

 Here, you’ll find insights on how to:

• Identify which stocks are most likely to outperform (or which options to buy before they rise).
• Preserve wealth while achieving higher returns with lower risk than the overall market.
• Recreate and follow research-backed portfolio strategies with transparent, real-time results.

My research and teaching are dedicated to answering these questions—and this platform provides the tools, data, and frameworks to put them into practice

How CAN SLIM Is Used

The system is generally used as:

Step 1 — Screen for Candidates

Investors screen thousands of stocks using:

• EPS growth,

• sales growth,

• RS ranking,

• industry strength,

• volume behavior,

• new highs.

Step 2 — Analyze Charts

Technical analysis is heavily integrated.

Common concepts:

• breakouts,

• bases,

• consolidation patterns,

• volume confirmation,

• moving averages.

CAN SLIM is NOT purely fundamental investing.

It is a hybrid:

• fundamentals + momentum + technical analysis.

Step 3 — Buy on Confirmation

Instead of buying falling stocks,
CAN SLIM investors usually buy:

• breakouts,

• strength,

• confirmation moves.

This differs from traditional value investing.

Step 4 — Manage Risk

Sell rules are critical.

Typical rules:

• cut losses quickly,

• avoid large drawdowns,

• rotate into stronger names.

Many implementations use:

• 7–8% stop-loss rules,

• moving average signals,

• relative strength deterioration,

• volume weakness.

Why CAN SLIM Became Popular

Historically, the framework identified many high-growth winners early in their advances.

Examples often associated with CAN SLIM-style traits:

• Apple

• NVIDIA

• Amazon

• Microsoft

before or during large institutional growth cycles.

Main Criticism of CAN SLIM

The strategy can:

• underperform in sideways markets,

• suffer during sharp reversals,

• experience whipsaws,

• buy “expensive-looking” stocks,

• and rotate frequently.

That is why many modern implementations add:

• tactical timing overlays,

• macro filters,

• moving averages,

• relative strength filters,

• or volume indicators.

For example, your own research emphasis using:

• VPCI,

• MA10 tactical rules,

• and defensive allocation overlays

is essentially an attempt to improve the original CAN SLIM framework’s:

• risk management,

• market timing,

• and drawdown control.

 A sample rebalance following the CAN SLIM system for May 19 2026 - the most recent rebalance. See below the passing stocks and return and risk interpretation going back to 1999 and compared to the overall U.S. stock market Sp500 - (interpretation from Chat-GPT):

This portfolio appears to be a high-momentum, tactical CAN SLIM–style strategy with active rotation and ranking logic, likely integrating:

• relative strength,

• momentum persistence,

• volume confirmation,

• and tactical replacement of weakening holdings.

The results show a classic “high-upside growth rotation” profile rather than a low-volatility defensive strategy.

Interpretation of the Equity Curve

The red equity curve substantially outperforms the benchmark over the full test period.

From the statistics table:

Why the Higher Standard Deviation Is Acceptable

At first glance, critics may focus on:

• the higher standard deviation (22.83%),

• and the aggressive equity curve.

However, standard deviation alone is often misleading for high-growth strategies because it penalizes:

• upside volatility,

• and downside volatility equally.

That creates a major issue for growth investing.

A strategy experiencing explosive upside momentum will naturally produce:

• larger return swings,

• stronger accelerations,

• and higher volatility measures.

But not all volatility is bad.

The Importance of the Sortino Ratio

The Sortino Ratio improves on the Sharpe Ratio because it isolates:

downside deviation only

rather than:

• upside + downside together.

This is important because investors generally:

• want upside acceleration,

• while avoiding downside instability.

The strategy’s:

Sortino Ratio = 1.08

versus

S&P 500 Sortino Ratio = 0.63

suggests the portfolio generated substantially better returns relative to harmful downside volatility.

In other words:

the additional volatility appears to come disproportionately from:

• upside expansion,

• momentum surges,

• and asymmetric positive returns

rather than destructive downside instability.

Why Maximum Drawdown Matters More Here

For tactical growth systems,
maximum drawdown is often the more practical risk metric.

Why?

Because it measures:

• the actual peak-to-trough capital decline
  an investor would experience psychologically and financially.

Here:

This is extremely important.

Despite producing:

• nearly double the annualized return,

• and massively higher cumulative return,

the strategy experienced a drawdown profile roughly consistent with the broader U.S. equity market.

That means the system:

• did not require materially worse downside pain
  to generate the excess returns.

Interpretation of the Passing Stocks

The rebalance log shows active replacement of weakening holdings with stronger-ranked momentum names.

Stocks sold included:

• weaker relative strength transitions,

• deteriorating rank positions,

• or likely failures of the momentum/technical confirmation process.

New additions included names such as:

• IHS

• VELO

• SCCO

• IMDX

• IFS

• TFPM

• RDNW

• SLGL

• BWMX

while several stronger holdings remained:

• ELA

• BWV

• AMX

• CGEN

• NEXA

• XMAX

This suggests the model is operating as a:

• dynamic ranking system
  rather than a passive buy-and-hold allocation.

What the Rebalance Suggests About the Strategy Logic

The rebalance behavior implies:

• stocks are continuously ranked,

• lower-ranked names are removed,

• capital rotates into improving momentum candidates,

• and technical persistence is rewarded.

The turnover (~60%) confirms the strategy is:

• tactical,

• adaptive,

• and responsive to changing leadership.

This is consistent with:

• CAN SLIM principles,

• relative strength investing,

• and momentum rotation systems.

Risk Interpretation

This is not a low-volatility strategy.

It is a:

high-upside tactical growth strategy

designed to:

• maximize asymmetrical upside participation,

• while maintaining drawdown behavior comparable to the broad market.

The key evidence supporting that interpretation is:

• higher Sortino ratio,

• higher Sharpe ratio,

• lower beta than expected (0.83),

• and maximum drawdown nearly identical to the S&P 500 despite vastly higher returns.

That combination suggests:
the strategy historically generated superior upside capture efficiency rather than simply taking reckless downside risk.

Overall Interpretation

The portfolio appears to demonstrate:

• successful long-term momentum capture,

• tactical rotation into market leadership,

• effective replacement of deteriorating holdings,

• and strong upside asymmetry.

The most important statistical takeaway is likely:

The strategy generated materially higher compounded returns without materially worsening maximum drawdown relative to the S&P 500, while the elevated standard deviation appears largely attributable to upside volatility — reflected in the stronger Sortino Ratio.

The stocks are from the NYSE (New York Stock Exchange) AMEX (American Mercantile Exchange). The SP500 portfolios are on https://www.drmattlutey.com/store