The framework above works in theory. The problem is human execution — emotion, recency bias, and overconfidence corrupt every step. You hold a loser because you believe in the story. You cut a winner because it feels too good to last. The process breaks down exactly when discipline matters most.
The only reliable solution is replacing human judgment with a model that applies these four steps mechanically — every single month, without exception or override.
Use Quant Momentum. The model screens for momentum, filters for quality factors, defines entry and exit criteria systematically, and sizes positions by rules — not by confidence levels. Monthly rebalancing keeps the portfolio positioned in stocks currently being rewarded by the market, not ones selected on a thesis formed six months ago. This is systematic stock picking — what most investors think they are doing, but almost never are.