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.
Do you want to get rich the easy way? My opinion, of course.
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!
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.
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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.
The latest FREE post:
Ok, I got it, now can you maybe slow down on your “FREE ADVICE” & focus on your DRAWDOWN…Hahaha.
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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:
Here’s a nice little bonus from my “other” highly regarded Substack. Enjoy!
The latest:
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:
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
New today.
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!
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.
The latest:
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!
The latest…
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!
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?
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!
