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Biotech Breakout

Biotech innovation: diversified basket, momentum leaders, cut losers

Biotech Breakout

3Y
Total Return
+43.4%
3Y
Sharpe Ratio
0.58
3Y
Max Drawdown
-18.6%
3Y
Win Rate
54.1%
3Y
Alpha
-10.3%
3Y
Comp. Score *
0.23
Risk Parameters
Max Allocation6.9%
Stop Loss18.6%
Take Profit6.4%
Max DD Tolerance18.6%
Rebalanceweekly
Execution Guidance
Order TypeLimit
Entry RuleBuy 0.5% below market in uptrend.
TimingSAFE TO BUY. *
ScalingEnter in 3 tranches over 1-2 weeks.
Positions — Vol-Adjusted Sizing
SymbolActionVol Stop LossTake ProfitSizeLinks
IONS BUY 46% 36.0% below entry 12.4% above entry 3.6% TVYH
XBI BUY 27% 20.7% below entry 7.2% above entry 6.2% TVYH
IBB BUY 21% 16.7% below entry 5.8% above entry 7.7% TVYH
BBH BUY 20% 15.8% below entry 5.4% above entry 8.1% TVYH
BIIB BUY 31% 24.0% below entry 8.3% above entry 5.3% TVYH
REGN BUY 35% 27.5% below entry 9.5% above entry 4.7% TVYH
LLY BUY 38% 29.7% below entry 10.3% above entry 4.3% TVYH
MRK BUY 27% 21.3% below entry 7.3% above entry 6.0% TVYH
AMGN BUY 27% 20.8% below entry 7.2% above entry 6.2% TVYH
ISRG BUY 32% 25.0% below entry 8.6% above entry 5.1% TVYH
ABBV BUY 26% 20.6% below entry 7.1% above entry 6.2% TVYH
GILD BUY 27% 21.2% below entry 7.3% above entry 6.1% TVYH
▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -36% drawdown to return 79% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return
49.9%
Avg 5Y Sharpe
0.31
10Y Return
79.4%
10Y Sharpe
0.2
HODL Composite
0.33
Consistency
85%
Suitable for passive
No