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WINNING

K Shape Economy

Rich richer, poor poorer: luxury+tech UP while dollar stores DOWN. Long the top arm of K.

K-Shape Economy (Inequality Trade)

3Y
Total Return
+11.3%
3Y
Sharpe Ratio
0.04
3Y
Max Drawdown
-25.0%
3Y
Win Rate
55.3%
3Y
Alpha
-19.5%
3Y
Comp. Score *
0.05
Risk Parameters
Max Allocation3.5%
Stop Loss25.0%
Take Profit5.0%
Max DD Tolerance25.0%
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
AAPL BUY 29% 30.0% below entry 6.0% above entry 2.9% TVYH
COST BUY 21% 21.6% below entry 4.3% above entry 4.0% TVYH
UNH BUY 43% 40.0% below entry 9.0% above entry 1.9% 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 -28% drawdown to return 183% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return
78.5%
Avg 5Y Sharpe
0.55
10Y Return
183.2%
10Y Sharpe
0.53
HODL Composite
0.57
Consistency
85%
Suitable for passive
No