# SK Small Caps Q&A **URL:** \ **Category:** Trading and Markets\ **Created:** [August 20, 2024, 11:18am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590 "2024-08-20T11:18:20Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 28, 2024, 1:53pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/22 "2024-08-28T13:53:14Z")
SK Small Caps is a play based on fundamentals and relative price. If you join my Substack, I break down all the strategy rules used here on C2. Once you grasp these principles, you can leverage RW to craft your own successful strategy. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 29, 2024, 12:03am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/23 "2024-08-29T00:03:30Z")
Do you want to get rich the easy way? My opinion, of course. > **[NVIDIA: The Next Big Wealth Generator?](https://theseankellytradingedge.substack.com/p/nvidia-the-next-big-wealth-generator?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Investing in the stock market can be a daunting task, especially when trying to identify the next big winner. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 30, 2024, 12:40pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/24 "2024-08-30T12:40:39Z")
Is keeping your sanity a solid excuse to dodge day trading? Do you think it’s worth it, or should we just embrace the madness? Chime in with your thoughts and tell us why you’d rather keep your cool—or dive headfirst into the chaos! ---
**Author:** ![TrendAlert](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/trendalert/32/18645_2.png) [@TrendAlert](https://forums.collective2.com/u/TrendAlert)\ **Post date:** [August 30, 2024, 5:54pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/25 "2024-08-30T17:54:36Z")
What we’ve learned from you is that we should all buy n hold Nividia to become rich, so we’re all done. I guess you’re trying to play the helpful guy out here so you can score a few hundred bucks a month but that’s a funny way of doing it. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 30, 2024, 7:16pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/26 "2024-08-30T19:16:59Z")
Let me make one thing clear: I’m here to share my thoughts, whether you like them or not. Unlike you, who seems only capable of throwing around baseless accusations and pointing fingers, I actually contribute something of value. My Substack content—aside from the specific insights into my work—is free. But I guess you conveniently overlooked that part, didn’t you? Frankly, dealing with people like you tests my patience. Your petty sarcasm about my supposed “get-rich-quick” advice is laughable. If you think I’m here just to scrape together a few bucks, then you’re more clueless than I thought. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [August 31, 2024, 12:21pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/27 "2024-08-31T12:21:38Z")
The latest FREE post: > **[Unlocking the Power of Market Mastery: How I’ve Transformed My Investing Game](https://theseankellytradingedge.substack.com/p/unlocking-the-power-of-market-mastery?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Discover the tools and strategies that have fueled my success—and how they can work for you too. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 2, 2024, 6:50pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/28 "2024-09-02T18:50:13Z")
> **[The Hidden Dangers of Day Trading and Scalping](https://theseankellytradingedge.substack.com/p/the-hidden-dangers-of-day-trading?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true)** > > A Better Way to Profit from the Markets ---
**Author:** ![TrendAlert](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/trendalert/32/18645_2.png) [@TrendAlert](https://forums.collective2.com/u/TrendAlert)\ **Post date:** [September 3, 2024, 7:52pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/29 "2024-09-03T19:52:03Z")
Ok, I got it, now can you maybe slow down on your “FREE ADVICE” & focus on your DRAWDOWN…Hahaha. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 3, 2024, 8:41pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/30 "2024-09-03T20:41:05Z")
Are you being critical of the way I trade, Rebecca? Or should I call you Becky? If so, make your point like an adult young lady. I am happy to have that discussion. Now for my latest post: > **[I’m Buying NVDA Every Single Day Until It Hits a New High—And I’m Loving It](https://theseankellytradingedge.substack.com/p/im-buying-nvda-every-single-day-until?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Call me crazy, but I’m out here buying NVIDIA (NVDA) stock every single day like I’m Elon Musk buying Twitter. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 4, 2024, 12:06pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/31 "2024-09-04T12:06:55Z")
Here’s a nice little bonus from my “other” highly regarded Substack. Enjoy! > **[Trump and Musk: Champions of Truth, Justice, and the American Way!](https://politicalpoetry.substack.com/p/trump-and-musk-champions-of-truth?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Exposing the Corruption ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 12, 2024, 12:17pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/32 "2024-09-12T12:17:34Z")
The latest: > **[Retire with Confidence: Secure Your Income and Still Invest for High Returns](https://theseankellytradingedge.substack.com/p/retire-with-confidence-secure-your?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > How to Lock in a Guaranteed Income for Life and Use the Rest of Your Savings to Grow Your Wealth Without the Stress ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 12, 2024, 10:40pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/33 "2024-09-12T22:40:38Z")
Hello everyone, I’m sending this update to all subscribers and posting it in the threads as well. The strategy I’ve been trading on C2 was initially designed for my own research, but I’m glad to see that many of you are following along. Just to let you know, I do trade this strategy in my personal account, though it’s combined with some of my other trading activities. Looking ahead, my plan after a year is to open an IBKR account, which will allow others to Auto-follow the strategy. If you’d prefer to learn how to implement it yourself, I’ve posted all the rules on my Substack page: The Sean Kelly Trading Edge: > **[The Sean Kelly Trading Edge | Substack](https://theseankellytradingedge.substack.com/)** > > With my edge, you can achieve remarkable growth: 101% CAGR over 20 years, 86% in 10, 213% in 5, 135% in 2, and 34% last year. Click to read The Sean Kelly Trading Edge, a Substack publication with hundreds of subscribers. I’m excited to share that the results, both on C2 and in my personal account, have closely matched the hypothetical backtests. This consistency is really encouraging and motivates me to keep refining the approach. One of the most exciting developments on this journey has been my additional research into mid-cap and large-cap stocks. I believe we’re really onto something special here, and I look forward to seeing where this takes us. May God bless you and bring you peace on your own journey. Warmly, Sean ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 20, 2024, 2:51pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/34 "2024-09-20T14:51:55Z")
New today. > **[The Realities of Day Trading: Why Success is Elusive (But Still Possible)](https://theseankellytradingedge.substack.com/p/the-realities-of-day-trading-why?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true&triedRedirect=true)** > > Day trading has a certain allure. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 21, 2024, 1:19pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/35 "2024-09-21T13:19:50Z")
I just checked the statistics of the strategy and it has a Sharpe Ratio of 1.85, considered **GOOD**. The Sortino Ratio of 3.23, which is in the **EXCELLENT** category, and the Calmar Ratio of 10.039 also **EXCELLENT.** Not bad so far but we’ll see after one year! ![Screenshot 2024-09-21 at 9.19.20 AM](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/3X/5/a/5add77cb67e7aedde9b9e99dac6e07835c34a4a3.png) The Sharpe ratio is a measure of risk-adjusted return, and the higher the ratio, the better a portfolio or investment is performing relative to the risk it is taking. Here’s a breakdown of Sharpe ratio ranges: - **Less than 1** : Suboptimal. The return is not sufficiently compensating for the risk taken. - **1 - 1.5** : Adequate. The return is reasonable relative to the risk, but could be improved. - **1.5 - 2** : Good. This indicates a strong risk-adjusted performance. - **Above 2** : Excellent. This shows exceptional risk-adjusted returns. So, with a Sharpe ratio of **1.85** , your investment is offering a **good balance of risk and reward** , outperforming many other investments on a risk-adjusted basis. The Calmar ratio measures an investment’s risk-adjusted return by comparing the average annual compounded return to the maximum drawdown (largest peak-to-trough decline) over a specified period. A higher ratio indicates that the investment is generating strong returns relative to the level of risk (drawdown) it has experienced. Here’s how the Calmar ratio is generally interpreted: - **Less than 1** : Poor. The return doesn’t justify the level of risk taken. - **Between 1 and 2** : Adequate. The return somewhat compensates for the risk, but there’s room for improvement. - **Above 2** : Good. The return outweighs the risk, and the investment is performing well on a risk-adjusted basis. - **Above 5** : Excellent. The investment delivers outstanding returns relative to the drawdown risk. The Sortino ratio, like the Sharpe ratio, measures risk-adjusted return, but it focuses only on downside risk (i.e., the risk of negative returns), making it particularly useful for evaluating investments where downside volatility is a primary concern. Here’s a general breakdown of Sortino ratio ranges: - **Less than 1** : Poor. The return is not sufficiently compensating for the downside risk. - **1 - 2** : Adequate. The return is acceptable relative to the downside risk. - **2 - 3** : Good. The investment is performing well on a risk-adjusted basis, especially considering the downside risk. - **Above 3** : Excellent. The returns significantly outweigh the downside risk, indicating a very favorable risk-return profile. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 23, 2024, 3:05am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/36 "2024-09-23T03:05:25Z")
The latest: > **[The Sharpe Ratio: Overhyped and Misleading—Here’s Why It’s Not Enough](https://theseankellytradingedge.substack.com/p/the-sharpe-ratio-overhyped-and-misleadingheres?r=2ubwr5&utm_campaign=post&utm_medium=web&triedRedirect=true)** > > The Sharpe ratio may look like a quick fix for evaluating risk, but it ignores the very volatility that can sink your portfolio. If you're relying on it alone, you're asking for trouble. ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 23, 2024, 5:10am UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/37 "2024-09-23T05:10:28Z")
I’ve been diving deep into some long-term backtesting, and I’m excited to say I’m about to jump in with a similar system focused on Mid Caps. The results have been impressive—while they may not match the explosive returns of Small Caps, they’ve consistently delivered stellar performance. I’m feeling confident about what’s ahead! ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 25, 2024, 4:15pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/38 "2024-09-25T16:15:43Z")
The latest… > **[The Sortino Ratio: The Metric You’re Missing for Smarter Risk Management](https://open.substack.com/pub/theseankellytradingedge/p/the-sortino-ratio-a-critical-tool?r=2ubwr5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true)** > > Forget generic metrics that lump all volatility together—the Sortino ratio zooms in on the risk that really matters: downside volatility. Here’s why it should be a core part of your investment strateg ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 25, 2024, 7:24pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/39 "2024-09-25T19:24:59Z")
Folks, I’m excited to give you a progress report on SK Small Caps as we hit the 5-month mark. From the start, my goal was simple: to see how this system, which had “off-the-charts” backtested results, would perform in real-time forward testing. Did I have sky-high expectations? Not really. I understand that backtesting gives you a framework, but forward testing is where the rubber meets the road—it either confirms or challenges what you think you know. Now, I’ve built some fantastic systems over the years, ones that have delivered solid returns in my own accounts. But this one? This one stands out. Why? The backtest results were absolutely stunning—not just for a couple of years, but consistently across _all_ years going back to 1999! That kind of performance is rare. And C2 seemed like the perfect platform to put it to the test. Of course, there have been some growing pains along the way. The account got a little too big, which forced me to resize, but hey, that’s a good problem to have! Sure, it was a bit of a hassle, but overall, the system is at least as strong as the backtest—maybe even stronger, thanks to some hedging strategies I’ve added. We’re still early—just five months in—but things are looking good. We’ve even weathered a significant hit from SunPower (SPWR) and come through it just fine. All in all, I’m pleased with where we are and excited for what’s ahead. Stay tuned, folks! ---
**Author:** ![JITF](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/jitf/32/24092_2.png) [@JITF](https://forums.collective2.com/u/JITF)\ **Post date:** [September 25, 2024, 7:40pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/40 "2024-09-25T19:40:06Z")
With such a great progress and perspectives and considering you are a bit concerned with the lack of the subscribers, why don’t you make the system TOS certified? ---
**Author:** ![SeanKelly11](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/seankelly11/32/19323_2.png) [@SeanKelly11](https://forums.collective2.com/u/SeanKelly11)\ **Post date:** [September 25, 2024, 8:13pm UTC](https://forums.collective2.com/t/sk-small-caps-q-a/16590/41 "2024-09-25T20:13:49Z")
Thanks for your comment, JITF! You’re absolutely right, and I appreciate your optimism. The plan is indeed to get TOS (Trade-Own-Strategy) certified, but I want to reach the one-year mark before making that move. Right now, it’s still in forward test mode, and I’m trading it within my own personal account, which also includes a mix of other strategies. I chose C2 specifically to forward test just this system in isolation. You might’ve noticed I also reduced the subscription fee to $20 during this testing phase, but that’s going to change once we hit the one-year anniversary. So stay tuned—exciting things are ahead, and I’m confident we’ll see strong momentum as we continue to grow! [Previous page](https://forums.collective2.com/t/sk-small-caps-q-a/16590.md?page=1) [Next page](https://forums.collective2.com/t/sk-small-caps-q-a/16590.md?page=3)