Give a detailed trading strategy for ”trading around these core positions.” Please be specific with position sizes, core position & trading sleeve.

``` The deep research logic is organized as follows: Okay, let's tackle this question. The user wants a detailed trading strategy for "trading around these core positions," specifically asking for position sizes, core positions, and trading sleeves. They provided a lot of data, including stock prices, support/resistance levels, volatility metrics, and some portfolio details. First, I need to understand what "trading around core positions" means. From the references, it seems like the core positions are the main holdings (like NVDA, MSFT, GOOGL, etc.), and the trading sleeve involves taking smaller, more active positions to capitalize on short-term moves. The user's portfolio has a mix of growth stocks and stable anchors, so the strategy should balance between holding the core and actively trading the sleeves. Looking at the references, there's a mention of position sizing strategies (Numbers 16-19). The user's portfolio is $540k, aiming for $1.2M by 2030. They have a mix of 6-10 stocks. The core positions are likely the larger allocations (like NVDA at 25%, MSFT at 20%), while the trading sleeves could be smaller positions in other stocks or ETFs. The user's current portfolio includes NVDA, MSFT, GOOGL, AVGO, META, LLY, JNJ, JPM, NOC, XOM, and SWVXX. The optimized mix suggested earlier includes NVDA, MSFT, GOOGL, AMZN, JNJ, PG, JPM, XOM, and cash. So, the core positions are the high-weight stocks, and the sleeves are the others or cash. The user's question is about how to trade around these core positions. That probably means using the core as a long-term holding and using the sleeves for tactical trades. The strategy should include entry/exit points based on support/resistance levels (from Query 10 and 15), position sizing based on risk tolerance (from Numbers 16-19), and rebalancing (from Number 16, 17, etc.). I need to structure the answer with a clear strategy, including how much to allocate to core vs. sleeves, specific entry/exit levels for each stock, position sizing calculations, and a rebalancing plan. Also, the user mentioned using each stock as an example, so I should detail this for a few key stocks. Let me start by outlining the core and sleeve positions. The core would be the main allocations (like NVDA, MSFT, GOOGL, JNJ), and the sleeves could be AMZN, PG, JPM, XOM, and cash. Then, for each core stock, determine the entry and exit points based on their support and resistance levels. For example, NVDA has a resistance at $183.3, so a trading sleeve might involve taking a position if it breaks that level. Position sizing is crucial. The user's risk tolerance is moderate, aiming for long-term growth. Using the 2% rule per trade (from Number 16), the position size for each sleeve trade would be 2% of the portfolio. For a $540k portfolio, that's $10,800 per trade. But since the user has a mix of core and sleeves, maybe allocate 80% to core and 20% to sleeves. So, core is $432k, sleeves $108k. Each sleeve trade could be 2% of the sleeve allocation, which is $2,160 per trade. For each core stock, the strategy would be to hold the core position and use the sleeves to trade around it. For example, if NVDA breaks above $183.3, take a sleeve position expecting a rise to $200. If it drops below $173.72, exit the sleeve. Similarly, for MSFT, if it breaks above $555.45, take a sleeve position aiming for $600. Rebalancing would occur quarterly, adjusting the sleeve positions back to target weights if they deviate. The user's portfolio needs to stay aligned with the core allocations while allowing flexibility for tactical trades. I should also consider the volatility metrics. NVDA has higher volatility (90-day historical volatility of 55.12%), so the position size for sleeves should be smaller to account for higher risk. MSFT has lower volatility, so larger sleeve positions could be taken. Putting this all together, the strategy would involve: 1. Core Positions: Held long-term, adjusted annually. 2. Trading Sleeves: Activated based on support/resistance breaks, with specific entry/exit levels. 3. Position Sizing: Calculated using 2% of sleeve allocation per trade. 4. Rebalancing: Quarterly checks to maintain core weights and close sleeve trades. I need to present this with tables for clarity, showing each stock's core allocation, sleeve strategy, entry/exit levels, position size, and risk/reward. Also, include a rebalancing plan with examples of when to adjust. Make sure to cite the relevant references, like the support/resistance levels from Query 10 and volatility from Query 15. Also, mention the position sizing rules from Numbers 16-19. The user's profile mentions a $540k allocation, so use that in calculations. Finally, ensure the answer is detailed, with specific examples for each stock, and adheres to the format requirements, including markdown tables and visualizations where applicable. ``` ### 🎯 **Final Answer** **Trading Strategy for "Trading Around Core Positions"** **Objective**: Maximize portfolio growth while managing risk through a balanced approach of core holdings and tactical trading sleeves. --- ### 📊 **Core vs. Trading Sleeve Allocation** | Category | Allocation (%) | Description | |----------------|----------------|-----------------------------------------------------------------------------| | **Core Positions** | 80% | Long-term holdings (e.g., NVDA, MSFT, GOOGL, JNJ) for stability and growth. | | **Trading Sleeves** | 20% | Short-term, tactical trades (e.g., AMZN, PG, JPM) for capitalizing on market swings. | --- ### 📊 **Position Sizing** **Rule**: Risk no more than **2% of the portfolio per trade** (aligned with risk-averse strategy). | Total Portfolio | $540,000 | |------------------|----------| | **Core Positions** | $432,000 | | **Trading Sleeves** | $108,000 | **Per Trade Risk**: - **Core Positions**: No active trading; held for long-term. - **Trading Sleeves**: Maximum risk per trade = **$10,800** (2% of $540,000). --- ### 📊 **Stock-Specific Trading Plan** #### 1. **NVIDIA (NVDA)** | Metric | Value | Strategy | |-----------------------|----------------|---------------------------------------------------------------------------| | **Core Allocation** | 25% ($135,000) | Hold long-term; rebalance annually. | | **Sleeve Strategy** | 5% ($27,000) | Enter if breaks **$183.3 resistance** (target: $200; stop: $173.72). | | **Position Size** | $10,800 | Risk 2% of portfolio; 40% allocation to sleeve. | #### 2. **Microsoft (MSFT)** | Metric | Value | Strategy | |-----------------------|----------------|---------------------------------------------------------------------------| | **Core Allocation** | 20% ($108,000) | Hold long-term; rebalance annually. | | **Sleeve Strategy** | 4% ($21,600) | Enter if breaks **$555.45 resistance** (target: $600; stop: $367.24). | | **Position Size** | $10,800 | Risk 2% of portfolio; 50% allocation to sleeve. | #### 3. **Alphabet (GOOGL)** | Metric | Value | Strategy | |-----------------------|----------------|---------------------------------------------------------------------------| | **Core Allocation** | 15% ($81,000) | Hold long-term; rebalance annually. | | **Sleeve Strategy** | 3% ($16,200) | Enter if breaks **$197.95 resistance** (target: $220; stop: $162). | | **Position Size** | $10,800 | Risk 2% of portfolio; 67% allocation to sleeve. | #### 4. **Amazon (AMZN)** | Metric | Value | Strategy | |-----------------------|----------------|---------------------------------------------------------------------------| | **Core Allocation** | 10% ($54,000) | Hold long-term; rebalance annually. | | **Sleeve Strategy** | 2% ($10,800) | Enter if breaks **$236.53 resistance** (target: $250; stop: $165.29). | | **Position Size** | $10,800 | Risk 2% of portfolio; 100% allocation to sleeve. | --- ### 📊 **Rebalancing Plan** | Frequency | Trigger | Action | |-----------|---------|-------------------------------------------------------------------------| | **Quarterly** | ±10% deviation from target weight | Adjust sleeve positions to align with core allocations. | | **Annually** | Core portfolio review | Reassess long-term holdings (e.g., NVDA, MSFT) and rebalance. | --- ### 📊 **Example Trade Execution** **Scenario**: NVDA breaks **$183.3 resistance** (current price: $173.72). - **Entry**: Buy $10,800 worth of NVDA at $173.72. - **Target**: Sell 50% at $183.3; sell remaining 50% at $200. - **Stop Loss**: Exit full position if price drops below $173.72. --- ### 📊 **Risk Management** | Metric | Threshold | Action | |-----------------------|-----------|-------------------------------------------------------------------------| | **Position Size** | 2% of portfolio | No single trade exceeds $10,800. | | **Drawdown** | 10% | Rebalance sleeve positions to prevent excessive losses. | | **Volatility** | 30-day IV | Avoid trades if implied volatility exceeds 50% (e.g., NVDA). | --- ### 🎯 **Conclusion** This strategy balances long-term growth (core positions) with tactical opportunism (trading sleeves), ensuring alignment with your $1.2M goal by 2030. Regular rebalancing and disciplined risk management will maximize success.