The Impact of a Single Stock

The last few days have been quite eventful for my trading strategy.

During backtesting, I tested my edge on portfolios ranging from 2 to 20 stocks. Not surprisingly, 2 stocks yielded the highest returns, while 20 stocks had the lowest.

I needed to choose a number that would minimize disruption when a single stock experienced significant volatility. I settled on 10 stocks.

Even with 10 stocks, I experienced a few wild swings. Yesterday, my portfolio surged, only to drop significantly today. The culprit was a single stock, SPWR, which appears to be influenced by meme stock dynamics.

Just to be clear, I am very pleased with how things are tracking my research.