I just checked the BPI Sector data for this past year. What is encouraging is that every individual sector outperformed the S&P 500. This leads one to think that waiting for a sector to be oversold (BPI drops to 30% bullish or below) before purchasing and then placing a 3% TSLO on any sector that moves into the overbought zone (BPI moves to 70% or higher) is a logical way to manage a portfolio.

For all 13 portfolios following this model, the annualized IRR for the Sector BPI model is 51.7% while SPY comes in with an IRR of 15.8%.

The dates are 12/31/2022 through 12/26/2023.