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Rules-based allocation for changing market environments.
Research-driven positioning across market cycles.
From The Newsletter
Note: Results may reflect real trades executed based on Stratum Index (3x) model allocations. Q72's account performance is shown using time-weighted returns (TWR). Individual results may vary based on execution, fees, taxes, and allocation decisions. For informational purposes only, not financial advice.
The origin
Quanta72 is an independent market publication. Each week, Q72 publishes tactical allocation insights, risk analysis, and cycle-based market commentary.
At the center of the project is the Stratum Index, a 13,000-line multi-algorithm framework in development since 2021. Each algorithm operates across its own ETF universe, rotating exposure based on changing market conditions. For example, if Treasuries begin outperforming Technology, one algorithm can shift toward defensive assets. If growth regains leadership, exposure can rotate back toward equities.
The Stratum Index now runs live and has been traded in real portfolios since April 2025, with Q72 reporting time-weighted returns since October 2025. Live results continue to track closely with modeled backtests across different market conditions.
Stratum Index (3X) Hypothetical Numbers
Hypothetical growth from $10K — Oct 2013 to Dec 2024, backtested
Annualized return vs. 13.6% for SPY over the same period
Sharpe ratio vs. 0.835 for SPY. Risk-adjusted outperformance.
For informational purposes only. All figures are hypothetical and based on backtested data. Past performance does not guarantee future results.
Subscriber Reviews
"I thought your methodology was well researched and I appreciate you being transparent about not only the upside but also how the model works during a downturn."
"Good to see independent thinking on how to build momentum systems across sectors. I would like to sponsor your work."
"Not my style of investing. Good publication otherwise"
"I supported your work because it seems to be very well researched. Could you send me by email the historical (backtested) returns and drawdown numbers for the methodology? many thanks in advance, Luc"
"Interesting. Adding some funds to the current positions. Perfect for my busy day job."
"Looks like rotation done right "
Metrics
The Business Cycle Composite Score translates market behavior into a simple directional scale.
The composite blends 12 return spreads, including cyclicals vs defensives, high yield vs Treasuries, and TIPS vs cash. Each spread is scored +1, 0, or −1.
These readings are aggregated into a composite score that typically ranges from −12 to +12.
The interpretation follows three regimes:
This framework allows complex cross-asset behavior to be interpreted as a consistent measure of economic and market conditions.
Disclaimer: This information is provided for educational purposes only. The score is derived from modeled relationships and historical data and does not represent financial advice or a recommendation to buy or sell any security. Past performance does not guarantee future results.
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