thetrading.tools

Citrine

Stock-specific momentum beyond broad sector moves

Citrine searches for strength that remains after accounting for the broad market and a stock’s sector. It is designed to favor company-specific leadership over a move shared by an entire industry.

Signal from the 2026-08-21 close, filled at the next session’s open.

01

Core idea

A stock can rise because its entire sector is rising. Citrine looks for the portion of a move that broad market and sector behavior do not explain, then favors companies showing persistent strength of their own.

02

What the model evaluates

The model combines several related observations rather than relying on a single price move. The exact weights and measurement windows remain private.

  • Stock-specific strength relative to common market moves
  • The sector relationship that best describes each stock
  • Persistence and tradability of the remaining price signal
  • Whether the current risk environment supports exposure
03

Portfolio process

Selection is systematic. The same process is applied to the eligible universe each day, with no manual override of individual stocks.

  • Stocks are compared on a peer-relative basis after each close.
  • The strongest company-specific signals form a concentrated portfolio.
  • Issuer and sector controls limit accidental duplication and crowding.
  • A risk overlay can reduce exposure when market conditions deteriorate.
04

Research process

Historical simulations apply the same systematic approach across different market environments. Signals use only information available by each close, and any resulting trade is priced at the following open.

The public Performance page shows the complete historical record and its main risk statistics. These simulations remain estimates, and future market conditions can produce a different outcome.

05

Execution

The model reviews the market after each close, ranks eligible stocks, and sets the next target portfolio. Orders are assumed to fill at the next market open. Real fills can differ as trading conditions change and order size varies.

06

Risks and limits

  • Sector relationships change, so a stock can be compared with an imperfect benchmark for a time.
  • Company-specific strength can reverse abruptly around earnings, news, or a change in expectations.
  • Reducing broad market exposure does not remove the possibility of a market-wide loss.
  • Historical membership and delisting coverage are incomplete, so the simulated universe cannot perfectly reconstruct every past opportunity.
  • Backtests describe one historical path. Changes in market structure or crowding can produce materially different results.
Research, not advice. Strategy results are hypothetical backtests, not subscriber or managed-account returns. They assume next-open fills and use modeled execution costs at the displayed account size where calibrated; actual execution can differ. Dividends and taxes are excluded, historical delisting coverage is incomplete, and every strategy can lose money. Read the full strategy disclosure.