Michael Jensen @GenesisGains: "Copier Update Volatility Was Promised —..."

Denmark

Copier Update Volatility Was Promised — Profits Were Prepared Hello everyone, With today marking the end of the month, it’s a good time for a quick status update. If we manage to hold most of today’s gains, we’re looking at just under 11% profit for the month and around 6.5% year-to-date. For context, at this point last year we were sitting at roughly 4.5%, so we’re already running about 2% ahead in what I expected to be a much more volatile year. And that volatility is exactly why I made adjustments—first in late December, and again a couple of weeks ago. We rotated sectors, adjusted position sizes, removed weaker names, and added new opportunities. In short: we prepared rather than reacted. A key move was reducing overall exposure to 40% when market breadth started flashing warning signs. Even while indices like the $SPX500 and $NSDQ100 looked stable, internally more stocks were falling than rising. So we trimmed exposure—mainly cutting laggards while keeping and even adding to the winners. After reassessing the data (and yes, doing the “boring” but necessary research), I increased exposure back to 60% about a week ago. That additional 20% was deployed right as earnings momentum picked up, which translated into strong returns. Following yesterday’s earnings, I’ve now reduced exposure again to 52%, keeping 48% in cash. This dynamic allocation is essential to my strategy. Managing exposure across 40–50 stocks and up to 150 positions is very different from trading a single index—it requires constant evaluation and flexibility. To give you an idea of how close we were to peak efficiency: I had planned to deploy additional capital if the Nasdaq revisited the August 2025 low at 22,706. We missed that level by just 74 points. In other words, we were operating at roughly 99% exposure right at the lows—about as close to perfect timing as it gets. Now, onto position sizing. As many of you know, I adjust position sizes periodically to keep risk aligned with account growth and market conditions. After increasing sizes near last year’s lows, I reduced them by 20% in January of this year, then gradually scaled back up during the February–March decline as we approached the bottom. At this stage, I’m not reducing position sizes further. Despite elevated index levels, our current sizing is well balanced relative to account size, sector allocation is healthy, and importantly—we are not overextended. Combined with our current exposure being just above 50%, risk remains well managed. The upside? We’re setting up for the next opportunity. During the next market correction, I plan to increase new position sizes by 10–25% after the first leg down. The exact allocation will depend on the depth of the correction and the individual strength of each stock—but the intention is clear: we will lean in when opportunities present themselves. I’ll leave it here for now and let the results do the talking. Let’s get back to what we’re here for—making profits. Mike

Not investment advice. The author may have financial interests in the mentioned instruments.

2 Mentioned

SPX500

SPX500 Index (Non Expiry)

NSDQ100

NASDAQ100 Index (Non Expiry)

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