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Defense Aerospace

Defense spending boom: contractors, space, cybersecurity

Defense & Aerospace

3Y
Total Return
+111.0%
3Y
Sharpe Ratio
0.70
3Y
Max Drawdown
-49.5%
3Y
Win Rate
54.1%
3Y
Alpha
+5.2%
3Y
Comp. Score *
0.27
Risk Parameters
Max Allocation12.9%
Stop Loss20.0%
Take Profit14.2%
Max DD Tolerance49.5%
Rebalanceweekly
Execution Guidance
Order TypeLimit
Entry RuleBuy on policy announcement day or day after. Backlogs are locked — dips are gifts.
TimingSAFE TO BUY. *
ScalingEnter 60% immediately on catalyst, add 40% if pullback within 2 weeks.
Positions — Vol-Adjusted Sizing
SymbolActionVol Stop LossTake ProfitSizeLinks
LUNR BUY 116% 40.0% below entry 42.6% above entry 4.3% TVYH
BA BUY 35% 29.8% below entry 21.1% above entry 8.6% TVYH
LMT BUY 25% 21.1% below entry 14.9% above entry 12.2% TVYH
NOC BUY 26% 21.5% below entry 15.3% above entry 12.0% TVYH
FTNT BUY 41% 34.4% below entry 24.4% above entry 7.5% TVYH
ZS BUY 45% 37.6% below entry 26.6% above entry 6.8% TVYH
PANW BUY 35% 29.8% below entry 21.1% above entry 8.6% TVYH
LHX BUY 23% 19.4% below entry 13.8% above entry 13.2% TVYH
ITA BUY 21% 18.0% below entry 12.7% above entry 14.3% 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 -49% drawdown to return 169% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return
57.9%
Avg 5Y Sharpe
0.37
10Y Return
168.8%
10Y Sharpe
0.35
HODL Composite
0.41
Consistency
82%
Suitable for passive
No