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.
