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Genomics Revolution

Gene editing, synthetic biology, molecular diagnostics (ARK ARKG thesis)

Gene editing, synthetic biology, and molecular diagnostics megatrend.

3Y
Total Return
+1.3%
3Y
Sharpe Ratio
0.08
3Y
Max Drawdown
-44.4%
3Y
Win Rate
46.3%
3Y
Alpha
-65.9%
3Y
Comp. Score *
-0.05
Risk Parameters
Max Allocation2.0%
Stop Loss25.0%
Take Profit5.0%
Max DD Tolerance44.4%
Rebalancemonthly
Execution Guidance
Order TypeMarket
Entry RuleUse market orders for volatile names.
TimingSAFE TO BUY. *
ScalingEnter in 3 tranches over 1-2 weeks.
Positions — Vol-Adjusted Sizing
SymbolActionVol Stop LossTake ProfitSizeLinks
ARKG BUY 44% 40.0% below entry 9.3% above entry 1.1% TVYH
A BUY 29% 30.1% below entry 6.0% above entry 1.7% TVYH
TMO BUY 28% 29.8% below entry 6.0% above entry 1.7% TVYH
TEM BUY 100% 40.0% below entry 15.0% above entry 0.7% TVYH
CRSP BUY 59% 40.0% below entry 12.4% above entry 0.8% TVYH
EDIT BUY 115% 40.0% below entry 15.0% above entry 0.7% TVYH
TXG BUY 73% 40.0% below entry 15.0% above entry 0.7% TVYH
BEAM BUY 74% 40.0% below entry 15.0% above entry 0.7% TVYH
ILMN BUY 46% 40.0% below entry 9.6% above entry 1.0% TVYH
TWST BUY 67% 40.0% below entry 14.0% above entry 0.7% TVYH
NTLA BUY 88% 40.0% below entry 15.0% above entry 0.7% TVYH
▶ For Passive Investors (Buy & Hold)

This strategy has moderate long-term performance but HIGH volatility (genomics is binary). Consider allocating 3-5% of portfolio as a speculative diversifier. Do NOT make this a core holding. Simplest passive approach: Equal-weight CRSP, BEAM, ILMN, TMO, TWST. These five span gene editing leaders (CRSP, BEAM), the sequencing monopoly (ILMN), life science tools (TMO), and synthetic biology (TWST). Or simply buy ARKG for managed genomics exposure. Rebalance quarterly. Warning: Many genomics names (CRSP, BEAM, NTLA, EDIT) only IPO'd 2016-2020, so early windows have limited universe. Performance improves as more names become available. The 2020-2021 genomics bubble and subsequent crash (-70% drawdown) is the dominant risk.

Avg 5Y Return
140.0%
Avg 5Y Sharpe
0.47
Avg 5Y Max DD
-42.0%
10Y Return (2015-2024)
112.1%
10Y Sharpe
0.27
10Y Max DD
-70.6%
HODL Composite
0.34
Windows Tested
28
Consistency
79%