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Policy Catalyst

Event-driven: trade sectors benefiting from major policy announcements

Policy Catalyst

3Y
Total Return
+58.3%
3Y
Sharpe Ratio
0.78
3Y
Max Drawdown
-25.0%
3Y
Win Rate
52.9%
3Y
Alpha
-6.5%
3Y
Comp. Score *
0.31
Risk Parameters
Max Allocation8.5%
Stop Loss20.0%
Take Profit10.0%
Max DD Tolerance25.0%
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
FSLR BUY 59% 40.0% below entry 24.7% above entry 3.4% TVYH
CAT BUY 32% 26.7% below entry 13.3% above entry 6.4% TVYH
MLM BUY 25% 21.1% below entry 10.6% above entry 8.1% TVYH
CLF BUY 69% 40.0% below entry 28.9% above entry 2.9% TVYH
LMT BUY 25% 21.1% below entry 10.5% above entry 8.1% TVYH
NOC BUY 26% 21.5% below entry 10.8% above entry 7.9% TVYH
TSM BUY 42% 34.9% below entry 17.5% above entry 4.9% TVYH
NVDA BUY 49% 40.0% below entry 20.4% above entry 4.2% TVYH
RTX BUY 25% 20.9% below entry 10.5% above entry 8.1% TVYH
VMC BUY 26% 22.0% below entry 11.0% above entry 7.7% TVYH
▶ For Passive Investors (Buy & Hold)

This strategy is suitable for passive investing. - 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 -25% drawdown to return 605% long-term. - Exit rule: Exit if the enabling legislation gets repealed.

Avg 5Y Return
191.7%
Avg 5Y Sharpe
1.08
10Y Return
605.3%
10Y Sharpe
1.02
HODL Composite
1.97
Consistency
92%
Suitable for passive
Yes