Unleashing the Power of SK Strategies: The Evolution Begins

Trading and Markets
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I’ve been talking about this for a while, and the time has come! SK Small Caps has been an incredible strategy that I’m thrilled with. However, during development and live trading, I noticed one drawback: when a small-cap stock crashes, the strategy can take a hit, like when SPWR got crushed recently.

To tackle this, I’ve created SK Small Cap Shield, which follows the same strategy but spreads across 20 stocks instead of 4. This should help reduce drawdowns, even though the returns will be lower. Backtesting has shown promising results!

Now, I wasn’t planning to add a third system, but since the upgrade allowed for 3 strategies, I’ve decided to call it SK Supercharged Semis! This one is all about the volatility and excitement, leveraging ETFs to boost returns. Of course, like most of my strategies, it’s hedged. I believe you’ll love the equity curve on this one after a few months of trading—so get ready and enjoy!

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All initial positions are open.

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I’ve been contemplating a suggestion I received recently—ironically, it’s something I had initially considered myself—about reducing the number of stocks from 20 to 10. This weekend will give me the time I need to test things out and reflect on whether this shift makes sense. I’ll decide after I’ve had the chance to explore it more thoroughly.

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Yes, in general trading more stocks or commodities at the same time reduces volatility and produces a smoother equity curve, assuming the stocks/commodities are uncorrelated enough.