Monthly
Trading & Investing
Systems

2nd Generation BMR/Core Systems

Courses Offered

0+ Years Experience

Based on the work of Dr. Ken Long, Ph.D.

Second Generation BMR/Core Systems

What Are Monthly Trading Systems?

These systems excel at identifying and capitalizing on major moves in global markets. Called monthly asset allocation systems, they are designed to help traders and investors profit from market trends by strategically rebalancing their portfolios on a monthly basis. By focusing on the world’s largest and most influential indexes, these systems position investors to capitalize on the substantial movements driven by institutional money. There’s big money in the big indexes, and when they move, these systems are designed to gain from it. Grounded in academically researched concepts and designed for simplicity, monthly asset allocation systems can be executed in even the most restrictive retirement accounts, requiring just minutes per month to operate. 

Where Do These Systems Come From?

These systems were originally developed by Dr. Ken Long and taught at the Van Tharp Institute, where they were known as first-generation BMR/Core systems. Building on this work, the second-generation systems we currently teach here represent an evolution and enhancement of the original BMR/Core systems. These second-generation systems were developed by Van Tharp Institute Super Trader participant Bill Scheidt, with the blessing and influence of Dr. Long.

What’s the Difference Between the First and Second Generation Systems?

The first-generation BMR/Core systems taught by Dr. Ken Long at the Van Tharp Institute laid the foundation for robust, momentum-based monthly asset allocation strategies. The second-generation systems we currently teach here include enhancements that make the systems even more versatile and powerful, while still maintaining the simplicity and effectiveness of the original approach.

Both systems leverage the academically researched concept of momentum, operate on a monthly timeframe, are designed for ease of execution, and take minutes per month to operate. However, the second-generation systems introduce several enhancements, including:
    • Enhanced momentum calculations incorporating a relative strength component.
    • Portfolio moving averages as a second option to the momentum framework.
    • Expanded momentum look-back periods for greater flexibility.
    • Optional volatility stops to manage risk dynamically.
    • Optional short positions to capitalize on market downturns.
    • Broader portfolio selections for diversification.
    • Expanded options for the number of holdings per month allowing for tailored strategies.
     
    These refinements make the second-generation systems even more versatile and powerful while maintaining the simplicity and effectiveness of the original approach.

Are These Black Box systems?

No. The courses for these systems provide all the rules and calculations in complete and exacting detail, reflecting our three core beliefs:

  1. Black box systems are dangerous to your financial health.
  2. Good research is reproducible.
  3. You must trade a system that fits you.

In line with these beliefs, the courses are designed to ensure every student can precisely replicate the systems and research we share. You’ll gain access to the same rules, calculations, assumptions, and methodologies we use—nothing is withheld. Upon completing the course, you will have everything you need to fully understand and execute the systems with confidence.

Not only will you be able to reproduce and verify our methodology and research, but you’ll also gain an in-depth understanding of the versions of the systems we personally trade. This is achieved through the detailed case studies included in the courses. Additionally, the courses provide instruction on how to modify the systems to align with your objectives, ensuring the systems fit you as a trader.

What Kind of Results Do These Systems Produce?

With SQN scores reaching 4.0 and beyond, Dr. Van Tharp would describe these as excellent systems. Our courses not only teach a number of specific systems in detail but also provide extensive content on how you can customize them to align with your specific objectives for risk and return. The courses include numerous case studies demonstrating how these systems have delivered returns greater than the S&P 500 on only a fraction of the drawdown. Check out the screenshot and video below for more details.

Register for Courses

Results Summary with SQN for Monthly Asset Allocation Systems

Learn More

Research Newsletter

  • Receive periodic research updates. Stay up to speed with market analysis, trading updates, and research findings.
  • Get 10% off all our products. All subscribers receive a 10% discount code for all our courses.
About

Mission Statement

Our mission is to serve the financial success and well-being of our community by providing quality trading education.

Values

Integrity – trading systems that work
Quality – world-class education that’s engaging, clear, and inspiring
Service – we’re here to help you accomplish your goals

Image

Dr. Ken Long, Ph.D.

Dr. Ken Long, Ph.D. brings his passion for leadership and teaching into the field of trading where he is a successful professional trader, an accomplished systems developer, and an internationally respected trading coach. He is a retired US Army Lieutenant Colonel with 25 years of active service. He holds a doctorate in management from Colorado Tech University and is an Associate Professor at, US Army Command & General Staff College.

In 1999, Ken founded Tortoise Capital Management which takes a descriptive statistics-based approach to global equity market analysis focusing on capturing low-risk, high-reward recurring opportunities that provide individual traders with a robust edge. Shortly after forming Tortoise Capital, Ken began his 20+ year tenure teaching at the Van Tharp Institute.

Ken’s trading business, Tortoise Capital, currently continues to develop complex trading systems focusing on short and intermediate-term trading opportunities that use Exchange Traded Funds, large-cap stocks, and futures contracts. Ken teaches his market approach methods, well-developed trading systems, as well as his latest innovations through Tortoise Capital programs.

Image

Bill Scheidt

Bill Scheidt has more than 15 years of experience trading stocks, options, commodities, ETFs, and crypto. He credits his studies with Dr. Ken Long and his participation in the Van Tharp Institute’s Super Trader program as the transformational experiences that galvanized his journey to becoming a successful trader.

Bill is the president of Applied Finance Research, the former co-owner of a Registered Investment Advisor firm, and the co-founder of The Systems Lab Inc. with Jeff Boccaccio. He researches and develops systems-based strategies for trading and investing, offers consulting and instructional services, and manages private equity.

Bill is a natural instructor and has a talent for helping others in their growth and development. He combines a methodical and scientific approach to trading with a down-to-earth and approachable teaching style. Having undergone the journey from losing trader to profitable private equity manager, he has a unique ability to meet traders where they are and help them get where they want to go.

Image

Contact Us

    Articles

    Learn More About What We Do

    Read More

    DISCLAIMER

    This content, and all trades, patterns, charts, systems, trading strategies, etc., discussed therein, is for educational purposes only. All materials discussed within or distributed in connection with this content are not intended for use as a source of investment or trading advice and should not be construed as a recommendation or solicitation to buy or sell any asset, currency, ETF, mutual fund, futures contract, option, or stock. The creators and distributors of this content and the related materials are researchers, educational presenters and publishers, not an accredited program or institution, nor are they professional advisors or brokers of any kind. By accessing this information, you acknowledge and agree that the creators and distributors of this content and the related materials in no way shall be considered as conforming to any educational standards or qualifications prescribed by any private or governmental entity.
    Trading and investing involve significant risk of loss. Traders and investors can lose more than their initial investment. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representations, implications or guarantees are being made that using the information provided within either the content or the related materials will generate profits or ensure freedom from losses, nor that using the information provided within either of the same will or is likely to achieve profits or losses like those shown.  Please consult an investment professional to explain all risks to you before making any decisions relating to the purchase or sale of any crypto-asset, currency, or security.  The information within both the content and the related materials is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities, futures or assets mentioned, nor is it a recommendation for the use of specific brokers, exchanges, securities, futures or other assets. The information discussed herein may be unsuitable for investors and traders depending on their specific investment objectives and financial position. The price or value of the investments to which this content and the related materials relate, either directly or indirectly, may fall or rise against the interest of investors and traders. All prices and yields contained in this content and the related materials are subject to change without notice. You are responsible for your own trading and investing results, and individual results vary.
    Historical, hypothetical, and simulated trading performance results have certain inherent limitations. Historical, hypothetical, and simulated trading results are generated with the best benefit of hindsight and unlike an actual performance record, they do not represent actual results and should not be interpreted as an indication of actual performance. Also, because historical, hypothetical, and simulated results are derived from data, they may under-compensate or over-compensate for the impact, if any, of various market forces such as lack of liquidity on actual trade executions. Backtested and simulated performance is hypothetical and does not reflect trading in actual accounts. As such, backtest and simulation results are provided for informational purposes only to indicate historical performance had particular investments strategies and trading systems been utilized over the relevant time frame. Backtested and simulated returns do not represent the performance results of actual trading or investing and are calculated through retroactive application of specific systems and strategies, designed with the benefit of hindsight. Since backtested and simulated performance results do not represent actual trading, they may not reflect the impact that material economic and market factors might have had on the decision-making of a trader or investor. There are frequently significant material differences between backtested, and simulated performance results and performance results subsequently achieved by following a strategy. In addition, backtested and simulated performance does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a trading or investing system despite trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading or investing system which cannot be fully accounted for in the preparation of backtested and simulated performance results and all of which can adversely affect actual trading results.  No representation is being made by the creators and distributors of this information that any account will or is likely to achieve profits or losses similar to those discussed within the content and/or the related materials. The creators and distributors of the information contained within the content and/or the materials do not guarantee any minimum level of trading or investment performance, nor the success of any client, client account or trading or investment strategy or system. Past performance does not guarantee future results. Backtested and simulated results do not guarantee future results.
    The creators and distributors of the information contained within the content and/or the related materials, may or may not take a position, or already have a position, in the assets discussed herein, based on their trading and investing discretion at the time. You should assume that these positions may be substantial enough to be material.  The creators and distributors of the information contained within the content and/or of the related materials assume no duty and do not undertake to disclose or update their positions, which are subject to change over time.
    The creators and distributors of this content and the related materials make no representation as to, or accept any responsibility or liability for, the accuracy or completeness of the information contained therein, or any decision or action taken by you or any third party in reliance upon the data from the same. Reliance on any or all of such information is at your own risk. The creators and distributors assume no responsibility for errors or omissions in the information contained in the content and/or the related materials. The content and the related materials offered are gathered from sources believed to be reliable, but have not been reviewed, compiled, or audited by an independent public accountant. Reasonable attempts have been made to verify this information and the creators and distributors provide it in good faith, though they do not guarantee it. The views expressed within the content and the related materials represents the current, good faith views of the authors at the time of presentation/publication. Please be aware that these views are subject to change at any time and without notice of any kind. The creators and distributors of this content and the related materials assume no duty and do not undertake to update these views or any forward-looking statements, which are subject to numerous assumptions, risks, and uncertainties, which change over time.  Some results are derived using historical estimations from available data.
    Your access to and/or use of the content and/or the related materials indicates your acceptance of these disclaimers and your agreement that you are solely responsible for your trading and investment results. The creators and distributors of the content and the related materials offer educational information on ways to use sophisticated trading tools and strategies, but it is ultimately up to customers to make their own trading and investment decisions or to consult with a registered investment advisor. In addition, your access to and/or use of the content and/or the related materials indicates that you agree to hold harmless, Applied Finance Research, William Scheidt, the Van Tharp Institute, Tortoise Capital Management, Ken Long and all other parties affiliated with the content and/or the related materials.
    Adherence to applicable laws, regulations, and jurisdictions is the sole responsibility of the attendees of the content and/or users of this related materials discussed within or distributed in connection with the content.  Under no circumstances should it be assumed, implied or inferred that the information presented within either the content or the related materials is to be considered as legal or tax advice.  Should you require legal, or tax advice it is strongly recommended that you contact a professional in those fields to assist you.
    All materials related to this content, including the content itself, are copyright protected. You have no rights to reproduce, distribute, teach, or sell any material contained within or related to the content or the related materials in whole or in part without express permission in writing from Applied Finance Research.  This content is for personal use only.  Commercial use is strictly prohibited.