Defense Budget Floor

Defense primes with locked-in backlogs. Buy dips on peace headlines — revenue is already contracted.

Defense Budget Floor (Buy Peace Dips)

Total Return

+61.7%

Sharpe Ratio

1.01

Max Drawdown

-11.6%

Win Rate

54.5%

Alpha

-5.7%

Comp. Score *

0.27

Risk Parameters

Max Allocation11.2%

Stop Loss11.6%

Take Profit10.0%

Max DD Tolerance11.6%

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

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
RTX	BUY	25%	12.1% below entry	10.5% above entry	10.7%	TV YH
LDOS	BUY	30%	14.5% below entry	12.5% above entry	8.9%	TV YH
LHX	BUY	23%	11.2% below entry	9.7% above entry	11.5%	TV YH
GD	BUY	21%	10.3% below entry	8.9% above entry	12.6%	TV YH
KTOS	BUY	58%	28.4% below entry	24.6% above entry	4.6%	TV YH
NOC	BUY	26%	12.4% below entry	10.8% above entry	10.4%	TV YH
HII	BUY	40%	19.3% below entry	16.7% above entry	6.7%	TV YH
LMT	BUY	25%	12.2% below entry	10.5% above entry	10.6%	TV YH

▶ 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 -20% drawdown to return 99% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return

43.1%

Avg 5Y Sharpe

0.3

10Y Return

98.7%

10Y Sharpe

0.3

HODL Composite

0.34

Consistency

82%

Suitable for passive