🎯 Phase 2: Hybrid Strategy Deployment Plan¶

Date: October 14, 2025 Strategy: 70% Momentum | 20% Leveraged ETFs | 10% Micro-Cap Catalysts Target Capital: $10,000 - $20,000 over 2 weeks Win Rate Target: 60%+

📊 Capital Allocation Breakdown¶

Total to Deploy: $10,000 (Conservative) to $20,000 (Aggressive)¶

Category	Allocation	# Positions	Per Position	Total
Momentum Plays	70%	3-5	$1,500-$3,000	$7,000-$14,000
Leveraged ETFs	20%	1-2	$2,000	$2,000-$4,000
Micro-Cap Catalysts	10%	2-3	$500	$1,000-$2,000

🚀 Category 1: Momentum Plays (70% - $7k-$14k)¶

Strategy: Replicate your NVDA success (+55%)

Criteria (Your Proven Formula):¶

✅ Strong sector trend (like AI for NVDA)
✅ Price making new highs or near highs
✅ Fundamental story (not just chart)
✅ Volume increasing
✅ You can explain WHY it should go up

Candidate Research Methods:¶

1. TradingView Stock Screener (Free) - Market Cap: Large ($10B+) or Mid ($2B-$10B) - Technical: Price above SMA(50) and SMA(200) - Performance: Up >15% last 3 months - Volume: Above average

2. Finviz Screener (Free) - Preset: "All-Time High" or "New High" - Market Cap: +Mid or +Large - Volume: Over 500K - Sector: Check what's hot (Tech, Healthcare, Energy?)

3. Manual Research (Your Watchlist) Check these proven sectors: - Semiconductors: AMD, AVGO, QCOM (if NVDA worked, others might) - AI Infrastructure: PLTR, SNOW, NET (AI trend continuation) - Cloud/SaaS: CRM, NOW, DDOG (enterprise spending strong) - Cybersecurity: CRWD, PANW, ZS (always growing)

Position Sizing:¶

Conservative: $1,500 per stock (4-5 positions)
Aggressive: $3,000 per stock (2-3 positions)

Entry Rules:¶

Use limit orders (don't chase)
Enter on pullbacks to support
Set 3x ATR stop loss
Add 9% trailing stop when up 15%

Example Momentum Deployment:¶

Position 1: AMD (Semiconductors)
- Entry: $165-$170 (on pullback)
- Size: $2,000 (12 shares)
- Stop: $155 (3x ATR or -9%)
- Target: $195 (+15-18%)
- Thesis: AI chip demand, earnings growth

Position 2: PLTR (AI Software)
- Entry: $42-$44
- Size: $2,000 (46 shares)
- Stop: $39 (-10%)
- Target: $52 (+20%)
- Thesis: Government AI contracts, commercial growth

Position 3: CRWD (Cybersecurity)
- Entry: $330-$340
- Size: $2,000 (6 shares)
- Stop: $310 (-8%)
- Target: $380 (+13%)
- Thesis: Cybersecurity is recession-proof, growing TAM

Total Momentum: $6,000 deployed

📈 Category 2: Leveraged Sector ETFs (20% - $2k-$4k)¶

Strategy: Replicate your LABU success (+27%)

Why Leveraged ETFs:¶

✅ 3x daily returns (magnify sector moves)
✅ Diversified (not single stock risk)
✅ Liquid (easy to exit)
✅ LABU already proving this works for you!

Candidate ETFs:¶

If Tech is Strong: - TQQQ (3x NASDAQ-100): Tech mega-caps - TECL (3x Tech Sector): Broader tech - SOXL (3x Semiconductors): If chips still hot

If Biotech Still Strong: - LABU (3x Biotech): You already have this! Add more if conviction high - CURE (3x Healthcare): Broader than just biotech

If Other Sectors Leading: - TNA (3x Small Caps): If Russell 2000 breaking out - UPRO (3x S&P 500): If broad market strong - ERX (3x Energy): If oil/gas sector strong

Position Sizing:¶

$2,000 per ETF
Max 2 positions
CRITICAL: Use tighter stops (these are volatile!)

Entry Rules:¶

Only buy if sector trending UP strongly
Use 7-9% trailing stops (vs 9% for stocks - tighter due to leverage)
Take profits at 20-30% (they move fast!)
Don't hold through major corrections

Example Leveraged ETF Deployment:¶

Position 1: TQQQ (if tech strong)
- Entry: Current price on confirmation
- Size: $2,000
- Stop: 7% trailing
- Target: +25% (exit half), let rest run
- Thesis: Tech sector leading market

OR

Position 2: LABU (add to existing)
- Entry: Current price (you're already up 27%!)
- Size: $2,000 (add to existing)
- Stop: 9% trailing (already set!)
- Target: +40% total, then trail tighter
- Thesis: Biotech sector momentum continues

Total Leveraged: $2,000-$4,000

🎲 Category 3: Micro-Cap Catalysts (10% - $1k-$2k)¶

Strategy: Binary event plays with 50%-300% upside

Fresh Catalyst Research (I'll help with this)¶

Where to Find: 1. BiopharmCatalyst.com - Filter: Next 30 days - Events: FDA PDUFA, Phase 2/3 readouts - Market Cap: <$500M

ClinicalTrials.gov
Search: "Phase 3" + recent updates
Look for: Upcoming data readouts
Biotech Twitter/StockTwits
Follow: @BiopharmCatalyst, @FDA_Drug_Info
Search: #PDUFA #ClinicalTrial #FDA

Evaluation Criteria:¶

✅ Must Have: - Binary catalyst in next 14-30 days - Clear upside case (what happens if positive?) - Defined downside (what happens if negative?) - Company has cash for 6+ months - Thesis you can explain simply

❌ Red Flags: - Catalyst >60 days away (too much can change) - Company desperate for cash (dilution risk) - Management with bad track record - Already ran up 100%+ into catalyst

Position Sizing (CRITICAL):¶

Max $500 per micro-cap
Max 3 micro-caps at once
ALWAYS paper trade first
Never more than 2-3% of portfolio in ONE micro-cap

Entry Rules:¶

Enter 7-14 days before catalyst
Set stop at -30% to -40% (these are volatile)
Plan to exit 50% at +50%, let rest ride
EXIT DAY OF CATALYST (don't hold through binary event!)

Example Micro-Cap Deployment:¶

Position 1: [RESEARCH NEEDED]
- Catalyst: FDA PDUFA decision Nov 1
- Entry: $2.50-$3.00
- Size: $500 (175 shares)
- Stop: -35% ($1.75)
- Upside Case: Approval → $6-$8 (+100-150%)
- Downside Case: Reject → $1.50-$2.00 (-35-50%)
- Exit Plan: 50% at +50%, rest at catalyst

Position 2: [RESEARCH NEEDED]
- Catalyst: Phase 3 data readout Oct 28
- Entry: $4.00-$4.50
- Size: $500 (115 shares)
- Stop: -40% ($2.70)
- Upside: Positive data → $8-$12 (+80-150%)
- Downside: Fail → $2-$3 (-40-60%)
- Exit Plan: Day before data release

Total Micro-Cap: $1,000

📅 2-Week Deployment Timeline¶

Week 1: Oct 14-20 (Research & Paper)¶

Monday Oct 14 (TODAY): - [X] Phase 1 complete (all trailing stops set) - [ ] Exit FBIO in paper (take -$20 loss as learning) - [ ] Research momentum candidates (Finviz scan) - [ ] Research micro-cap catalysts (BiopharmCatalyst.com) - [ ] Create watchlist of top 5 momentum + top 3 micro-caps

Tuesday Oct 15: - [ ] Deploy 1-2 momentum plays to Alpaca Paper ($1000 each) - [ ] Deploy 1 leveraged ETF to paper (or add to LABU) - [ ] Set stops on all

Wednesday Oct 16: - [ ] Monitor paper positions - [ ] Research micro-cap #1 deeply - [ ] Deploy 1 micro-cap to paper ($500)

Thursday-Friday Oct 17-18: - [ ] Monitor all paper trades - [ ] Evaluate: Which are working? Why? - [ ] Prepare for Week 2 live deployment

Week 2: Oct 21-27 (Live Deployment)¶

Monday Oct 21: - [ ] Deploy best momentum play from paper → Live ($2000) - [ ] Deploy leveraged ETF → Live ($2000) - Total deployed: $4,000 live

Tuesday-Wednesday Oct 22-23: - [ ] Monitor live positions - [ ] Deploy 2nd momentum play → Live ($2000) - Total deployed: $6,000 live

Thursday-Friday Oct 24-25: - [ ] Evaluate micro-cap paper performance - [ ] If confidence high: Deploy 1 micro-cap → Live ($500) - [ ] Add trailing stops to any winners >15% - Total deployed: $6,500-$8,000 live

End of Week 2 Target:¶

$6,000-$10,000 deployed live
3-5 momentum positions
1-2 leveraged ETF positions
1-2 micro-cap positions (if validated in paper)

✅ Success Metrics¶

After Week 1 (Paper Trading):¶

[ ] At least 2 paper positions profitable
[ ] No single position down >10%
[ ] Clear thesis for each position
[ ] Confidence to move to live

After Week 2 (Live Trading):¶

[ ] $6k-$10k deployed
[ ] Win rate >50%
[ ] At least 1 position up >10%
[ ] All positions have stops set
[ ] No position >5% of portfolio

End of Phase 2 (2 Weeks):¶

[ ] $10k-$20k total deployed
[ ] 5-8 total positions
[ ] Portfolio up 3-7% overall
[ ] Proven deployment process
[ ] Ready to scale in Phase 3

🎯 Immediate Next Steps (TODAY)¶

Step 1: Exit FBIO (5 minutes)¶

Go to Alpaca Paper → Close FBIO position - Take the -$20 loss - Document: "What went wrong? Catalyst timing? Company issue?" - Move on with fresh opportunities

Step 2: Momentum Research (30 minutes)¶

Use Finviz.com: 1. Go to Stock Screener 2. Filters: - Market Cap: +Mid - Price: Above SMA50, Above SMA200 - Performance: Month +10% - Volume: Over 500K 3. Export top 20 results 4. Manually review charts on TradingView 5. Pick top 3-5 for deep research

Step 3: Micro-Cap Catalyst Research (30 minutes)¶

I can help with this! Tell me: - "Find me 3 biotech catalysts in next 30 days" - I'll research BiopharmCatalyst and give you analysis

Step 4: Deploy First Paper Trades (Tomorrow)¶

Based on research: - 2 momentum plays ($1000 each) - 1 leveraged ETF ($2000) - 1 micro-cap ($500) if found good catalyst

🆘 How I Can Help¶

Ready to help you with:

Momentum Research
Give me 5-10 symbols from your Finviz scan
I'll analyze which are best setups
Micro-Cap Catalyst Research
I'll search for upcoming biotech/pharma catalysts
Provide full analysis on top 3
Leveraged ETF Analysis
Should you add to LABU or diversify?
Which sector ETF is strongest?
Position Sizing Calculator
How much of XYZ should you buy?
Where to set stops?

What would you like me to help with first?

The beauty of this hybrid approach: - You get proven momentum (NVDA-style) = High probability - You get leveraged exposure (LABU-style) = Already working - You get micro-cap lottery tickets = High reward potential - Risk is balanced across strategies - You don't over-commit to any one approach

Let's start executing! What's your first request?