Micro-strategy Incorporated (MSTR) _ Core _ Portfolio _ 2025.
Note: Only for Core Portfolio and not for active Trading.
Drop for purpose of repeat cycle = $195.87
Distribution price:
$732.38
$842.91
$956.57
$1,176.64
$1,269.94
$1,287.25
$1,355.63
$1,375.08
$1,409.02
$1,438.72
$1,442.32
$1,555.15
$1,687.60
$1,713.24
$1,715.55
$1,717.87
$1,739.91
$1,817.37
$2,238.33
$2,663.88
$3,329.85
$3,679.79
_________________
I’m aware lot of Retail Investor included Institutional Investor not sure how to structure their investment portfolio or capital Investment, so here is how a real diversification should be done. Feel free to message me and I will be happy to help = free.
This is based on my own mathematical model but you can add it in your own portfolio however it works for you!
Let’s take it as an example of Capital Allocation:
• You should allocate 64% for Active Trading (Keep away from Call or Put option = fake): For Prioritising high-frequency trading across forex, commodities, and select equities, and cryptocurrencies, this strategy should capture short term market movements.
• 30% Core Portfolio (If you’re not a professional trader which rarely even exist you must switch the % over, instead of 64% allocating for active trade you focus 30% allocation) : which will provide a balanced, lower-volatility portion invested in large-cap equities, REITs, and cash equivalents, providing steady income and growth while offsetting active trading volatility.
3. Asset Class Diversification:
• Targeted Exposure: Each asset class serves a distinct purpose. Forex and commodities provide high liquidity for active trading, while equities and REITs in the core portfolio deliver long-term stability.
• Dynamic Rebalancing: Remember this is based on my own mathematical model (Do not get confuse with Indicators or software = Fake, well in my facts opinion ) which will determines allocation shifts within active trading, allowing you the strategy to adapt to changing market conditions across asset classes.
4. Leverage and Risk Management:
• Selective Leverage Application: Higher leverage is applied strategically within the active trading allocation (e.g., up to 10x in forex, 5x in commodities) to amplify returns where model driven confidence is high. The core portfolio remains largely unleveraged to balance overall risk.
• Stringent Risk Controls: Stop-loss limits, position sizing, and frequent monitoring are used to limit downside risk in leveraged trades, while stress testing and predefined drawdown limits safeguard the portfolio’s stability.
5. Model-Driven Active Trading:
• Mathematical Model Application: The proprietary model informs entry and exit points, trade sizes, and allocation adjustments, maximising the potential for successful trades based on historical accuracy and real-time signals.
• High-Frequency Trade Execution: With the model’s support, trades are executed on short timeframes ranging from intraday to weekly allowing for rapid response to market fluctuations.
6. Performance Benchmarking and Monitoring:
• Benchmarks for Core and Active Components: Performance is measured against specific benchmarks for each asset class, like the S&P 500 for equities and the Bloomberg Commodity Index for commodities.
• Risk-Adjusted Metrics: The fund’s performance will be reviewed using metrics such as the Sharpe Ratio, which assesses returns relative to risk, providing a clear gauge of whether the fund’s strategy is achieving risk-efficient returns.
How you should apply your investment strategy:
• Day-to-Day Execution: You / your fund manager should follow the model’s signals to execute trades within the active trading portfolio. Real-time monitoring will ensure that positions adhere to stop loss levels and profit targets, with adjustments made as necessary based on market conditions.
• Quarterly Adjustments (Covering 4 Quarter per annual): The core portfolio allocation should be reviewed quarterly to ensure it continues to balance the active trading component effectively, adjusting based on the broader economic outlook.
• Risk and Liquidity Management: Your Investment portfolio liquidity requirements will be managed by maintaining cash or cash-equivalents to support margin requirements and cover leverage, while regular stress tests ensure resilience against potential market downturns. (Short description, you must hold a cash for downturns).
By structuring the investment overview this way, the fund effectively communicating a clear, actionable strategy focused on disciplined growth and resilience.
Asset Allocation and Diversification:
a) Core Portfolio (30%): This will focus on relatively stable, lower-volatility assets:
• Equities: 20% (weighted toward large-cap or dividend-paying stocks and ETFs).
• REITs: 7% (primarily high-quality REITs with reliable income).
• Cash/Cash Equivalents: 3% (For liquidity and to support margin requirements).
b) Active Trading Allocation (64%): This larger allocation allows for an intensified focus on short-term opportunities.
• Forex: 25% – Primarily major currency pairs, using leverage where model signals show high-confidence opportunities.
• Commodities: 20% – Focus on liquid assets like gold, oil, and other major commodities, leveraging intraday and swing trades.
• Equities: 15% – High-momentum stocks or sectors with short-term growth potential.
• Cryptocurrency: 4% – Limited but high-volatility positions, using the model’s insights to capture short-term movements in major cryptocurrencies.
With a majority allocation toward active trading, the fund’s approach becomes more tactical, capitalising on market fluctuations and trends identified by the mathematical model. Here’s how each component will operate:
1. Core Portfolio / Holding Management (30%)
• Designed as a capital preservation buffer to stabilize returns.
• Minimal leverage will be used, focusing instead on lower-risk assets like large-cap equities, REITs, and cash equivalents.
• Rebalancing will occur less frequently (e.g., quarterly) to maintain stability.
2. Active Trading (64%)
• High Leverage Utilisation: Since the model drives short-term trading, higher leverage levels (e.g., 5x–10x in forex and commodities) will be employed, depending on market liquidity and volatility.
• Dynamic Position Sizing: If you’re using my mathematical model then this should determine position sizes based on confidence levels, allowing for adaptive scaling of trades.
• High-Frequency Trade Execution: Emphasis on intraday or weekly trades to capture quick gains. Strict stop-losses and profit-taking rules will be used to manage risk in each trade.
• Flexibility Across Asset Classes: This allocation enables a quick pivot to take advantage of any shifts or trends in specific sectors, like commodities or forex.
Risk Management Framework
• Core Portfolio: Will act as a counterbalance to the riskier active trading component, providing a stable base that cushions potential volatility in the overall portfolio.
• Leverage and Margin Control: A leverage cap will be set for each asset class within active trading. For instance, forex might be capped at 10x, commodities at 5x, and equities at 2x.
• Risk Limits and Stress Testing: Set maximum drawdown limits for the active trading allocation (e.g., no more than 15% loss before position adjustments) and implement regular stress testing to adapt to market volatility.
Feel free to message for any clarification I will be happy to help. Happy New year and all the best!
Note: Only for Core Portfolio and not for active Trading.
Drop for purpose of repeat cycle = $195.87
Distribution price:
$732.38
$842.91
$956.57
$1,176.64
$1,269.94
$1,287.25
$1,355.63
$1,375.08
$1,409.02
$1,438.72
$1,442.32
$1,555.15
$1,687.60
$1,713.24
$1,715.55
$1,717.87
$1,739.91
$1,817.37
$2,238.33
$2,663.88
$3,329.85
$3,679.79
_________________
I’m aware lot of Retail Investor included Institutional Investor not sure how to structure their investment portfolio or capital Investment, so here is how a real diversification should be done. Feel free to message me and I will be happy to help = free.
This is based on my own mathematical model but you can add it in your own portfolio however it works for you!
Let’s take it as an example of Capital Allocation:
• You should allocate 64% for Active Trading (Keep away from Call or Put option = fake): For Prioritising high-frequency trading across forex, commodities, and select equities, and cryptocurrencies, this strategy should capture short term market movements.
• 30% Core Portfolio (If you’re not a professional trader which rarely even exist you must switch the % over, instead of 64% allocating for active trade you focus 30% allocation) : which will provide a balanced, lower-volatility portion invested in large-cap equities, REITs, and cash equivalents, providing steady income and growth while offsetting active trading volatility.
3. Asset Class Diversification:
• Targeted Exposure: Each asset class serves a distinct purpose. Forex and commodities provide high liquidity for active trading, while equities and REITs in the core portfolio deliver long-term stability.
• Dynamic Rebalancing: Remember this is based on my own mathematical model (Do not get confuse with Indicators or software = Fake, well in my facts opinion ) which will determines allocation shifts within active trading, allowing you the strategy to adapt to changing market conditions across asset classes.
4. Leverage and Risk Management:
• Selective Leverage Application: Higher leverage is applied strategically within the active trading allocation (e.g., up to 10x in forex, 5x in commodities) to amplify returns where model driven confidence is high. The core portfolio remains largely unleveraged to balance overall risk.
• Stringent Risk Controls: Stop-loss limits, position sizing, and frequent monitoring are used to limit downside risk in leveraged trades, while stress testing and predefined drawdown limits safeguard the portfolio’s stability.
5. Model-Driven Active Trading:
• Mathematical Model Application: The proprietary model informs entry and exit points, trade sizes, and allocation adjustments, maximising the potential for successful trades based on historical accuracy and real-time signals.
• High-Frequency Trade Execution: With the model’s support, trades are executed on short timeframes ranging from intraday to weekly allowing for rapid response to market fluctuations.
6. Performance Benchmarking and Monitoring:
• Benchmarks for Core and Active Components: Performance is measured against specific benchmarks for each asset class, like the S&P 500 for equities and the Bloomberg Commodity Index for commodities.
• Risk-Adjusted Metrics: The fund’s performance will be reviewed using metrics such as the Sharpe Ratio, which assesses returns relative to risk, providing a clear gauge of whether the fund’s strategy is achieving risk-efficient returns.
How you should apply your investment strategy:
• Day-to-Day Execution: You / your fund manager should follow the model’s signals to execute trades within the active trading portfolio. Real-time monitoring will ensure that positions adhere to stop loss levels and profit targets, with adjustments made as necessary based on market conditions.
• Quarterly Adjustments (Covering 4 Quarter per annual): The core portfolio allocation should be reviewed quarterly to ensure it continues to balance the active trading component effectively, adjusting based on the broader economic outlook.
• Risk and Liquidity Management: Your Investment portfolio liquidity requirements will be managed by maintaining cash or cash-equivalents to support margin requirements and cover leverage, while regular stress tests ensure resilience against potential market downturns. (Short description, you must hold a cash for downturns).
By structuring the investment overview this way, the fund effectively communicating a clear, actionable strategy focused on disciplined growth and resilience.
Asset Allocation and Diversification:
a) Core Portfolio (30%): This will focus on relatively stable, lower-volatility assets:
• Equities: 20% (weighted toward large-cap or dividend-paying stocks and ETFs).
• REITs: 7% (primarily high-quality REITs with reliable income).
• Cash/Cash Equivalents: 3% (For liquidity and to support margin requirements).
b) Active Trading Allocation (64%): This larger allocation allows for an intensified focus on short-term opportunities.
• Forex: 25% – Primarily major currency pairs, using leverage where model signals show high-confidence opportunities.
• Commodities: 20% – Focus on liquid assets like gold, oil, and other major commodities, leveraging intraday and swing trades.
• Equities: 15% – High-momentum stocks or sectors with short-term growth potential.
• Cryptocurrency: 4% – Limited but high-volatility positions, using the model’s insights to capture short-term movements in major cryptocurrencies.
With a majority allocation toward active trading, the fund’s approach becomes more tactical, capitalising on market fluctuations and trends identified by the mathematical model. Here’s how each component will operate:
1. Core Portfolio / Holding Management (30%)
• Designed as a capital preservation buffer to stabilize returns.
• Minimal leverage will be used, focusing instead on lower-risk assets like large-cap equities, REITs, and cash equivalents.
• Rebalancing will occur less frequently (e.g., quarterly) to maintain stability.
2. Active Trading (64%)
• High Leverage Utilisation: Since the model drives short-term trading, higher leverage levels (e.g., 5x–10x in forex and commodities) will be employed, depending on market liquidity and volatility.
• Dynamic Position Sizing: If you’re using my mathematical model then this should determine position sizes based on confidence levels, allowing for adaptive scaling of trades.
• High-Frequency Trade Execution: Emphasis on intraday or weekly trades to capture quick gains. Strict stop-losses and profit-taking rules will be used to manage risk in each trade.
• Flexibility Across Asset Classes: This allocation enables a quick pivot to take advantage of any shifts or trends in specific sectors, like commodities or forex.
Risk Management Framework
• Core Portfolio: Will act as a counterbalance to the riskier active trading component, providing a stable base that cushions potential volatility in the overall portfolio.
• Leverage and Margin Control: A leverage cap will be set for each asset class within active trading. For instance, forex might be capped at 10x, commodities at 5x, and equities at 2x.
• Risk Limits and Stress Testing: Set maximum drawdown limits for the active trading allocation (e.g., no more than 15% loss before position adjustments) and implement regular stress testing to adapt to market volatility.
Feel free to message for any clarification I will be happy to help. Happy New year and all the best!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.