Methodology

Why PeakSync Exists

Markets reward discipline more than opinions. The goal of PeakSync is to give serious DIY investors a repeatable, rules-based process—especially when headlines are loud and emotions run high.

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PeakSync is built for investors who want:

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• A rules-based system they can explain and defend

• Transparent building blocks (factor sleeves), not black-box “AI picks”

• A portfolio lineup that fits different risk preferences

• A practical way to stay aware of news-driven risk​

Quant investing in one idea

​Quant investing starts with a simple premise:
If certain characteristics have been rewarded repeatedly, you can systematically tilt toward them.

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Decades of research and real-world practice have documented persistent factor patterns such as:

• Quality (profitability + balance sheet strength)

• Momentum (winners often keep winning in trends)

• Value / Mean Reversion (oversold names can recover as narratives stabilize)

• Carry / Yield (getting paid to hold can support compounding)

PeakSync packages these ideas into a product that’s:
rules-based, repeatable, and updated on schedule.

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What we mean by “AI Factor Investing”

​PeakSync uses AI where it actually helps: signal processing, data fusion, and ranking at scale.

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Instead of relying on one metric or one story, the system:

1. Collects multiple inputs (factor signals + sentiment signals)

2. Standardizes and scores them consistently

3. Ranks the S&P 500 universe

4. Builds sleeves and portfolios from the top-ranked names

5. Updates monthly on a consistent schedule

The goal isn’t to “predict the future.” It’s to reduce noise, improve consistency, and keep the process defensible.

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Sleeves: the building blocks

​Sleeves are mini-portfolios, each built around one philosophy. Each sleeve selects a fixed number of stocks using transparent rules.

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PeakSync uses five sleeves:

1. Sentiment
   Captures changes in expectations (revisions, surprises, recommendation shifts, positioning).

2. Quality
   Favors durable businesses (profitability, margins, balance sheet strength, lower risk traits).

3. Momentum
   Follows trends using 3–12 month price momentum characteristics.

4. Mean Value
   Targets mean reversion (names that may be oversold versus recent averages).

5. Carry-Momentum
   Blends yield + trend (seeks stocks that “pay you to wait” while respecting price action).

Portfolios: sleeves combined into complete allocations

Portfolios are simply blends of sleeves—the sleeves are the ingredients, and each portfolio is a recipe designed for a different style and risk tolerance.

Examples:

• Core: balanced mix of all sleeves

• Aggressive Growth: concentrates in higher-return engines (sentiment/momentum/quality)

• Defensive Quality: heavier quality tilt with smaller complements

• Momentum Stack: trend-focused blend

• Yield Growth: emphasizes carry/yield + quality with smaller momentum exposure

Why this structure works:

• Sleeves can behave differently across market regimes

• Blending aims to produce more robust performance than a single-signal approach

The News Sentiment Overlay

Numbers matter—but narratives move markets too.

PeakSync includes a lightweight news sentiment overlay designed to help the system stay aware of persistent negative narratives (and improving ones) without turning the strategy into day trading.

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What it does

• Scores news flow for tone and direction

• Flags persistent negativity that can overwhelm factor strength

• Breaks ties when factor scores are similar by favoring improving sentiment

• Helps reduce exposure to “headline gravity” risks

What it doesn’t do

• It’s not high-frequency trading

• It doesn’t hinge on one headline or hot take

• It’s meant to stay explainable—an overlay, not a black box

Universe, rebalancing, and implementation

• Update cadence: portfolios refresh on a monthly schedule (rankings update, sleeves refresh, and constituent lists update)

• Weights: equal-weight at entry, then weights drift with the market between updates

• Implementation: sell names that exit and buy new entrants; remaining holdings are not resized

What this means in practice: PeakSync is a rules-based constituent refresh system, not a continuous “optimize weights every month” strategy. The holdings list is the model signal; your live weights may differ as prices move.

Trading assumptions and real-world friction

Backtests may include estimated trading costs (e.g., 0.10% per trade) to stay grounded. Real-world results can differ due to slippage, spreads, taxes, account constraints, and execution timing.

How to use PeakSync

1. Choose the portfolio that matches your risk tolerance

2. Mirror holdings and weights in your brokerage account

3. Refresh constituents monthly (sell exits, buy entrants) and let the rest drift

4. Each month, refresh constituents: sell names that exit, buy names that enter, and let the rest drift

Important notes

• Investing involves risk, including loss of principal.

• Backtests are hypothetical and do not guarantee future results.

• Concentration, sector risk, and volatility can be meaningful depending on portfolio.

• This is educational content, not individualized investment advice.