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Strategy

Band Allocator

A direct-indexing screener that allocates fresh DCA dollars across cap-rank bands

Banded Accumulation Philosophy

A personal accumulation system for a multi-decade horizon, deployed via recurring DCA tranches. Instead of picking single winners, the universe is segmented into market-cap rank bands, and each monthly tranche is spread across them — momentum applied recursively, both within and across bands.

Core Principles

  • Bands govern buying, not holding — holdings are sticky
  • Momentum + quality rank names within bands
  • Band-level momentum allocates dollars across bands
  • Sell rules stay narrow; weak names just fall off the buy list

Why Bands?

  • Rank-based, so they survive a 40-year horizon
  • Mega / large / mid exposure without absolute thresholds
  • Deterministic & reproducible — pure functions, no LLM in the path
  • Diversified accumulation over concentrated stock-picking

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How the Allocation Works

1. Banding

Eligible securities are ranked by market cap into three bands — Band A (mega, rank 1–25), Band B (large, 26–100), and Band C (mid, 101–400, subject to a cap floor).

2. Within-Band Scoring

Inside each band, names are scored by a blend of momentum (mean of 3/6/12-month total return) and quality, normalized to z-scores so bands are comparable. Band C additionally requires a positive acceleration inflection.

3. Cross-Band Allocation

Each band's breadth momentum produces a band-level signal. The monthly tranche is tilted toward stronger bands around a 50/30/20 base, then clamped to floors and ceilings so no band dominates or disappears.

4. Buy List

Each band's allocation is split equally across its top-scored names (depth shrinks if the tranche can't support full depth at the minimum order size), producing a concrete buy list.

⚠️ This is a screener, not an order router

  • The system recommends; a human executes. No order placement.
  • Stateful advisor features (holdings book, hysteresis, smoothing) are out of scope here.
  • Data-quality notes are surfaced with each run — read them before acting.