Built to Adapt: Inside the Quanta 72 Stratum Index

Based on CRSP methodology and inclusive of trading costs, the Quanta 72 Stratum Index is built on probabilities—not predictions. It uses a modular architecture and business cycle indicators to tactically allocate across sectors.

Year to date, the Q72 Stratum Index has delivered a modeled return of 6.7%, compared to -12.9% for the SPY benchmark over the same period.

The Q72 Stratum Index consists of multiple algorithms that measure relative and absolute momentum across varying timeframes. Script 1 might allocate 10% to an equities ETF, while Script 2 might allocate 10% to a defensive ETF, and so on. The final strategy combines the outputs of all the scripts, resulting in a balanced and diversified portfolio.

See how we allocated ahead of this week—read the pre-market report.

Selection is based on both 12-month rolling correlations and intentional diversification—some scripts deliberately exclude assets included in others. This approach reduces redundant exposure, and maintains balanced risk without overfitting.