Hedge Your Wealth
With OnlyBears
Signup to our OnlyBears strategy to copy our trades and protect your family's wealth by profiting from falling stock prices and market volatility
Investment Thesis
Are your properly prepared for a potential pro-longed bear market and stock market crash that could not only affect your portfolios, but also your job, business, property and family members too?
As we contemplate the state of the American stock market today, one cannot ignore the eerie resemblances it bears to the Japanese stock market of the late 1980s. Following a meteoric rise of over 2,500% in the preceding two decades, the Japanese stock market reached record valuations, only to suffer a profound fall of over 80% in the subsequent years. Three decades later, it is still yet to fully recover!
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With American stocks currently exhibiting a similar setup, the pertinent question arises..
What would be the implications of a comparable 80% drop on your family's wealth?
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If this scenario triggers a sense of unease, the "OnlyBears" strategy presents itself as a prudent hedging solution for your family. It's a 100% focused short selling stock strategy that will handsomely profit if and when we get a pro-longed bear market and stock market crash.
Strategy Objective
Benchmark: ProShares Short S&P 500 Index (ETF: SH)
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To outperform the benchmark on a yearly basis and significantly so in the long term by providing an effective hedging strategy against the typical long-only portfolios most people carry.
Investable Universe
Only American stocks listed on the NYSE and NASDAQ exchanges.
NO penny stocks/ETFs/futures/options.
A minimum market capitalization of $1 billion dollars.
A minimum stock price of $5 per share.
A minimum average daily traded volume value of $5 million dollars.
Investment Approach
Designed to counterbalance the inherent risks associated with an overvalued market, OnlyBears operates as a net short strategy, leveraging a diversified portfolio of 20 positions, each constituting 7.50% of the portfolio value at the time of opening. We use a moderate amount of leverage (50%).
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In an effort to broaden our risk distribution, we maintain a balanced mix of small, mid and large-cap stocks spanning over a dozen distinct industries. Our trades are multifaceted, incorporating tactical medium-term positions with an infusion of short-term swing trades, depending on the market situation.
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Our strategic approach is all-encompassing, taking into account macroeconomic dynamics, fundamentals, valuations, and technical analysis. We exercise caution and enforce strict risk management protocols, incorporating a definitive loss limit per position.
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It is crucial to understand that like all strategies, OnlyBears may experience drawdowns when the market surges. However, for those concerned about a protracted bear market akin to Japan's 20-year downturn, OnlyBears serves as a prudent hedge.
By allocating a portion of your overall portfolio to our strategy, you stand to potentially accrue substantial returns during bear markets or stock market crashes.
Position Sizing
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The model portfolio uses 7.5% of the current model account value when opening all positions
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There are always 20 positions open, when one closes, we open another the same day
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The total leverage of the portfolio is approximately 150% (7.5% x 20 positions)
Trade Frequency
Typically, positions are held open for several days to several months or longer. You may expect approximately 1 - 5 new trade alerts per month. Low portfolio turnover is a positive feature of the strategy that keeps trading costs to a minimum to enhance returns.
Key Benefits
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Hedge against possible multi-year bear/sideways markets with a short-only portfolio
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Generate unique returns that have a negative correlation to the general market
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Diversify your long-only equity exposure with the ability to generate returns in bear markets
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Very low level of maintenance required with an average of 20 minutes of trading per month
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Ability to automate the OnlyBears strategy into your Interactive Brokers account
Strategy Performance
Below is the performance of our trading strategy starting with a hypothetical $50,000 portfolio on the 1st of December 2022, the grey line on the chart represents the S&P 500 Index for comparison.
This real time performance is tracked by an independent 3rd party platform, Collective2 (C2) and includes all brokerage and our subscription fees deducted to get a true look at our performance after fees. All of our trades are entered in real time into the C2 platform and can be publicly verified by anybody within their platform.
Cost to Follow
Unlock the full potential of our powerful trading strategy for just $75 per month.
With this subscription, you'll receive all trade alerts directly to your email, giving you the flexibility to manually enter the trades into your own trading account.
How to Follow the OnlyBears Strategy
Our strategy is listed on Collective2, a copy trading platform that allows strategy managers like us to offer strategies for subscribers to follow and copy in real time. Think of Collective2 like an online hedge fund marketplace that anybody can join to find trading strategies to copy.
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There are over 1,000 strategies available on the C2 platform, however please don't just be attracted to one's that show abnormally high returns, they are usually short lived because they use excessive amounts of leverage, so always check the Leverage reading on strategies, you'll see ours at 1.50 (meaning 150%). We only use a small amount of leverage in a well-diversified portfolio of short positions to deliver the most effective hedge against a possible long bear market and stock crash.
Follow the steps below to subscribe to the OnlyBears strategy.
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Visit the OnlyBears strategy page on Collective2 here https://collective2.com/details/142739519 and signup for $75/month
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Collective2 will now email you all changes to our portfolio in real time and you will be able to see our current open positions. Some months there may be 1-3 trades, some other months there may be several more. You can enter the trades into your own trading account.
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Or, if you wish to have the trades automatically placed in your Interactive Brokers account then you have the option to sign up for an Auto-trade plan for an additional $49/month with Collective2 who will then automatically place all our trades in your IB account in real time.
If you have any other questions you're welcome to email us at support@clickcapital.io