Strategy Overview: How I Trade & Manage My Portfolios
A breakdown of my momentum-based approach, portfolio structure, and risk management framework.
Dear readers,
Welcome back to My Weekly Stock, where in-depth market analysis meets proven momentum-based trading strategies. My mission? To help you win in the markets with unbiased, data-driven insights you can act on.
I believe that every successful investing approach has three key ingredients:
A process to screen stocks and build a watchlist.
A set of rules for entering and exiting positions.
A system to manage risk.
In this post, I’ll break down my four key strategies, showing you exactly how I select trades, manage risk, and optimize returns:
Momentum Picks: my short-term tactical play.
Swing Trade Portfolio: my comprehensive mid-term strategy.
Macro ETF Portfolio: my long-term, macro-driven allocation across equities, bonds, commodities, and crypto.
Stock Investing Portfolio: my momentum-backed selection of fundamentally strong stocks for long-term growth.
Want real-time access to my trades and portfolio updates? Subscribe today and take advantage of my full strategy in action! Plus, your first month is FREE. So, if you're ready to give it a try—or simply want to support my work—this is your chance!
INTRODUCTION
I built My Weekly Stock newsletter because I don’t believe success comes from just following someone else’s portfolio. That’s why I dedicate so much time to sharing my holistic momentum-based approach to investing—showing you how I connect strategy to insights and, ultimately, to portfolio decisions.
If you’re new here or want a deeper dive into the foundation of my investing approach, check out my detailed post below:
1. WEEKLY MOMENTUM PICK
Approach
I use a proprietary algorithm to evaluate momentum indicators for each company on my watchlist, including the 1-month and 3-month returns and the performance relative to their 52-week high and low. Each stock is then ranked based on these indicators, with a score assigned from highest to lowest. The stock with the highest average score becomes my pick for the week.
My trading plan is straightforward: I buy the stock pick at the market open on Monday and sell it by Friday's close. This strategy focuses on the 30 stocks in the Dow Jones (plus Alphabet). As the algorithm rewards consistent winners, it is not uncommon for the same stock to be selected for multiple weeks in a row.
Entry / Exit Rules
The entry price is always Monday's market open. I then calculate a 6% profit target and a 2% stop-loss limit based on the entry price. These levels are used as performance benchmarks. If the price breaches the stop-loss or profit target during the week, I assume an exit at that level. I don't sell on Monday if the stop-loss is hit, but I sell if the profit target is reached. I exit at Friday's close if none of these conditions are met.
While my personal entry and exit prices may vary slightly— for better or worse, the simplified approach makes tracking performance clearer and easier to replicate.
Confidence Level
The confidence level reflects my qualitative assessment based on my experience with these stock picks. The best-performing picks often exhibit two key traits:
Supportive broader market conditions.
An algo score below 94, indicating the stock still has room to run.
Research Strategy: MOMENTUM BOUNCE
Beyond my classic Momentum Picks, I also track a high-risk, high-reward variation of this strategy: the Momentum Bounce.
I have been paper trading this strategy for the past three years, using the same momentum-based algorithm but applying it differently. The approach has delivered a cumulative 300% return with a 60% hit rate over that period. Given the results, I am tracking it live and including it in my updates since Jan 2025.
The strategy remains one stock per week, bought on Monday and sold on Friday. The stock selection is based on my algorithm but focuses on the weakest-ranked stock within a universe of U.S.-listed stocks with a market cap above $150B.
In bull markets, I go long, expecting a bounce from oversold conditions. In bear markets, I either stay on the sidelines or short the stock, anticipating further downside.
I expect higher volatility than my usual momentum picks, and I don't use stop-losses at this stage. Given the higher risk, I will trade smaller amounts.
2. SWING TRADE PORTFOLIO
Watchlist
I focus on US large-caps mostly and aim for a balance across Growth, Cyclical, and Defensive segments. My selection provides solid coverage and protection across almost any market condition.
Entry/Exit
My signals are based on daily charts, where I use a combination of momentum & technical indicators to identify trend reversals. Occasionally, I reference the 4-hour chart for fine-tuning entries and exits. It is important to note that I am not chasing exact lows or highs (which is more a matter of luck than skills). Instead, my goal is to capture significant portions of an uptrend.
Risk Management
On average, my trades last about 40-50 days, with roughly 5% of my portfolio allocated to each trade. I don’t use stop-loss orders because positions are relatively small, and losses are typically manageable. Significant losses occasionally occur due to overnight gaps, such as after an earnings report, where stop-loss orders would have proven ineffective anyway. Instead, I ensure no position exceeds 5% of my portfolio at entry, and I never add to a losing trade.
I also actively manage positions during uptrends. I typically trim my positions after 15% gains, then again around 30%, allowing the remainder to run until the trend exhausts. I may adjust the approach based on each stock, chart, and market condition.
3. MACRO ETF PORTFOLIO
This Macro ETF Portfolio is a long-term strategy, but it's not a "buy and hold forever" approach. On average, holdings will last 12 months, but positions may be shorter or longer depending on market conditions. I actively manage the portfolio and am willing to sit in cash during periods of weak momentum.
The goal of this strategy is threefold:
Achieve diversification across asset classes and market segments.
Safeguard capital during downturns.
Maximize gains during risk-on periods.
Watchlist
My Macro ETF Portfolio is crafted around 25-30 ETFs, each tracking different segment of the market. The components include:
Broad Equity Index (30-40%), Industry Themes (20-30%), Fixed-Income (10-15%), Crypto (10-15%), and Commodities (10-15%).
This portfolio is my interpretation of the 60/40 allocation, but with a twist:
60% in equities, spread across broad indices and sectors.
15% in bonds.
25% in alternative investments, such as commodities and crypto.
The allocation is meant as a guideline, not a rigid rule, as exact weightings will fluctuate based on market conditions. In an ideal "everything bull market," these percentages would serve as a target. However, since markets are rarely perfect, I often start with higher allocations during the early stages of a cycle and trim later to lock in gains.
For those seeking higher growth, I've created an alternative version of the portfolio that uses 3x leveraged ETFs across the same segments. While this approach has the potential for higher returns, it comes with increased risk and volatility.
Entry and Exit Rules
My approach is to buy on strength. Signals are derived from weekly charts, focusing on a crossover between the 9-week and 30-week Exponential Moving Averages (EMAs) to identify trend reversals. Rather than chasing exact highs or lows—often more luck than skill—I wait for confirmed signals of a trend reversal to capture significant portions of the move.
Risk Management
Risk is managed primarily through active position management. I never add to losing positions. I actively manage positions during uptrends, trimming after substantial gains to lock in profits. Remaining positions are allowed to run until the trend shows signs of exhaustion.
These principles serve as guidelines, but I adapt my approach based on the unique characteristics of each asset, chart setup, and prevailing market conditions.
4. STOCK INVESTING PORTFOLIO
This Stock Investing Portfolio is a mid-to-long-term strategy, but it's not a "buy and hold forever" approach. On average, holdings will last 12 months, but positions may be shorter or longer depending on market conditions. I actively manage the portfolio and am willing to sit in cash during periods of weak momentum.
Watchlist
I start the stock selection process by filtering stocks within the US markets through fundamental criteria. This method usually narrows my focus to approximately 30 stocks. To ensure these stocks continually meet my investment criteria and to adapt to evolving market conditions, I update my watchlist every 3 to 6 months. This disciplined approach helps maintain a relevant portfolio.
My investment approach is anchored in 3 fundamental screening criteria:
Growth: I target companies exhibiting over 10% Earnings Per Share (EPS) growth and more than 5% revenue growth
Margin: I focus on companies with a Return on Invested Capital (ROIC), Operating Margins, and Free Cash Flow (FCF) margins above 10%. These indicators reflect management's efficiency and attractive company's profitability.
Balance Sheet: I look for companies with a Debt-to-Equity ratio below 1 which suggests financial health and stability.
The essence of my portfolio strategy is to invest in growing companies with attractive margins and solid financial foundations. These traits closely align with the potential for long-term stock price appreciation.
Entry and Exit Rules
My approach is to buy on strength. Signals are derived from weekly charts, focusing on a crossover between the 9-week and 30-week Exponential Moving Averages (EMAs) to identify trend reversals. Rather than chasing exact highs or lows—often more luck than skill—I wait for confirmed signals of a trend reversal to capture significant portions of the move.
Risk Management
Risk is managed primarily through active position management. I never add to losing positions. I actively manage positions during uptrends, trimming after substantial gains to lock in profits. Remaining positions are allowed to run until the trend shows signs of exhaustion.
These principles serve as guidelines, but I adapt my approach based on the unique characteristics of each stock, chart setup, and prevailing market conditions.
CONCLUSION
Thank you for reading! I hope this breakdown gave you a deeper understanding of my strategies and how I apply them to navigate the markets. My approach isn't about blindly following signals—it's about combining data-driven insights with a disciplined framework to maximize returns while managing risk.
If you're ready to take the next step and see my strategies in action, I invite you to subscribe. Paid members gain full access to my weekly stock picks, portfolio updates, and deep-dive analysis—all backed by momentum research.
Your first month is FREE—so why not give it a try?
See you in the markets!
My Weekly Stock
DISCLAIMER
Please be aware that I currently have, or may initiate, a position in the stocks mentioned in this article. This disclosure is made for transparency purposes and should not be taken as a recommendation to buy or sell any securities.
The information provided in this newsletter is for informational purposes only and should not be taken as financial advice. Any investments or decisions made based on the information provided in this newsletter are the reader's sole responsibility. We recommend that readers conduct their own research and consult a qualified financial professional before making investment decisions. The author does not assume any responsibility for any losses or damages arising from using the information provided in this newsletter.