Our pillers

1. Force.

   The Force Rating system evaluates a stock's performance over the past 52 weeks, comparing it to all other stocks on the market. This assessment reveals whether the stock is demonstrating leadership or lagging behind based on its price performance.

2. The delusion of diversified.

   You should take your profits to sectors that doesn't perform well in the certaint environment for the stake of diversifying. We invest responsibly with a castle-like approach, carefully managing risk while maintaining integrity.

3. Valuations are gold!

   Earnings growth, depth levels and management is not a side note. We don't fully align with the conventional wisdom of "no debt, pay dividends," as many value investors do. Macro-economic factors play a significant role in our approach as well.

4. Currency is gold.

   Cash will become less valuable in the future. We protect ourselves to invest in Gold, Silver and Cryptocurrencies.

5. Technical analysis.

   We believe that the technical levels predict the upcoming catalyst. We buy or sell if technical level breaks.
   We employ the line charts like the RSI, MACD and VOL. Additionally, we utilize short-term candlestick charts featuring different SMA's. This aids us in determining the phase a participant is in.

Castle approach

The approach is built upon our Force indicator and the regular market, we have embraced a castle-like structure that serves as the cornerstone of our methodology, satisfying one of our pillars essential to our success. This architectural analogy mirrors our systematic approach to surpass the standard.

The journey begins at the base level of our castle structure, It is here for a solid foundation.

As one progresses within our framework and demonstrates proficiency at the foundational level, they ascend to the tower levels.

Finally, at the pinnacle of our castle structure, lie the flags. These flags are the individual Force stocks within that sector.

By adhering to this structured approach, individuals engage in dynamic and strategic investing. we allocate the resources, mitigating risks, and maximizing opportunities for growth and profitability.

Base level (Indexes)

As the allocation at this level increases, the beta decreases, aiming for closer alignment with the benchmark's performance. This allocation primarily serves to ensure stability within the portfolio. Within this allocation, there's room for indexes such as the S&P 500, Nasdaq 100, and Dow Jones. While we typically adhere to the three largest indexes by default, deviations are possible. Equal-weight indexes and the Russell 2000 are examples of such deviations from the major indexes. The primary objective at this level is to establish a foundation. If achieving this is better served by an equal-weight index, we're open to deviating from the norm.

it's crucial to consider this structure both from top-down and bottom-up perspectives. This means that all layers above this level will influence it, and vice versa, implying that this level will affect the layers above it. For instance, when focusing on the technology sector, the allocation in the foundational layer will lean more towards the Nasdaq than the Dow Jones. However, it's important to emphasize a cautious approach at this level; its purpose is to reduce portfolio beta.

The standard allocation here is as follows: 60% - S&P 500, 30% - Nasdaq 100 and 10% - Dow Jones.

Tower level (Sectors)

The purpose of the 'tower level' is to interpret the market in the short term (3 to 6 months) within the portfolio. Here, a more aggressive approach is taken and acted upon for the first time. Although it was crucial to keep the beta low at the base level, this plays no role at all in the tower level. The tower level goes hand in hand with the pillar of 'Force' and is reviewed weekly through the 'Sector'option on the tool and on a technical view (Pillar 5).

Follow the rule of the market

Solid arguments must be provided for why the strategy wouldn't change, along with an estimation of the likelihood of the strategy occurring within a certain timeframe, expressed in percentages. For instance, "Our strategy and macroeconomic outlook will definitely materialize within 1.5 months." This percentage influences how closely we follow the market. If my confidence in the strategy is 90%, we track the market by 10%. If confidence is lower, this percentage will be higher. We do this to remain in the market, even if we disagree with its movements, as staying in cash while the market rises means a loss of 5% against the benchmark. This can lead to actions that may escalate to the "shoot holes level," explained further in the following section.

Concrete example:
Being 100% certain that the strategy will materialize:
50% for the base level,
35% for the tower level,
10% for the optional shoot holes level,
5% for the flags level.

If the market moves against us and we're now only 90% certain:
47% for the base level (-3),
32% for the tower level (-3),
20% for the optional shoot holes level (+10),
2% for the flags level (-3).

In the tower level, diversification isn't applied, and investments are solely made in sectors showing strong performance based on Relative Strength, supported by fundamental/technical arguments. Tactical maneuvers can be executed (within the shoot holes level) as discussed earlier but shouldn't overshadow the overall strategic outlook. This layer is considered the most critical and has the most influence on the vision and positioning of the portfolio.

Flagship level (Stocks)

The 'flagship level' focuses on selecting stocks that perform well both on fundamental grounds and in terms of the Force, while also aligning with the broader strategy. Fundamental analysis also necessitates a focus on the cycle.

These stocks are also tracked in a public portfolio, WAPH (which stands for our watchlist containing all stocks we monitor regardless of the market situation at that moment). Additionally, we have the FAPH, the focused watchlist, consisting of stocks that are derived from WAPH but align closely with our current market situation.

Loophole level (Hedge/Trends)

This optional 'loophole level' is designed for tactical interventions or deepening the 'tower level'. Here, we primarily address matters that are clear and for which both technical and fundamental arguments can be made, but which may not necessarily fit within the main strategy. Think of a highly undervalued sector or a geopolitical event occurring. These are situations that can be capitalized on in the short term.

This level provides the opportunity to act in scenarios that do not directly align with the main strategy but seem attractive from a short-term perspective or due to significant fundamental or technical opportunities. It also encompasses hedging if there are looming risks to our strategy or stocks.

The aim here is to provide flexibility for quick tactical maneuvers or for situations that demand immediate action, even if they do not seamlessly align with the portfolio's main strategy.

What about Crypto?

In our approach to cryptocurrency, we find that the traditional value of cash is becoming layered in an increasingly digitalized world. This trend is fueled by the adoption of digital payment methods and the rise of blockchain technologies. As a result, investments are looking to Alternative forms of stores of value, and cryptos are becoming increasingly attractive as a hedge against potential and degradation of fiat currencies.

Within our strategy, we keep a close eye on technical levels as these can often require the upcoming catalysts. We are alert to breakthrough moments on a technical level, because they can often indicate the direction of the market. When these technical levels are broken, we usually not only change the market trends, but also cause fundamental reasons worldwide in our processing. This fundamental analysis includes geopolitical events, economic indicators, and systematic assumptions that can impact the value of crypto assets.

By combining both technical and fundamental analysis, we can make informed decisions about buying and selling crypto assets while taking advantage of the evolving financial landscape.