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Leaving The Matrix

Portfolios

Three strategies.
One framework.

Each portfolio runs a different lens — AI-curated picks, systematic ETF momentum, and high-conviction small caps. All three share the same discipline: every position has a written thesis, every closed position gets reviewed honestly, every miss is documented.

Portfolio 01

Nova Fund

AI-curated. Quality × discount × smart-money. Thirteen institutional indicators, one score.

Nova Fund is a live, AI-curated portfolio managed inside Nova — the trading copilot we built for our own desk. Every position is selected through the same lens applied everywhere on this site: quality × discount × smart-money confirmation, condensed into a single 0–100 Nova Score across thirteen institutional layers.

Thirteen indicators. Five score zones — Selling, Distribution, Neutral, Accumulation, Buying. Layers without data abstain: they're skipped from the blend, not averaged toward 50. A confluence bonus fires when multiple smart-money layers read bullish on the same name. Every pick is paired with a written thesis.

Cash flows are managed deterministically. Dividends are reinvested automatically at the next ex-date close (DRIP). The sector-aware allocator prevents concentration into any one theme. Positions are reviewed in the weekly memo with reasoning published — every entry, every exit, every miss.

Framework

Quality × Discount × Smart-money

Score

0–100 · 13 layers · 5 zones

Cadence

Weekly memo · daily rebalance

Cash flows

DRIP · sector-aware sizing

How it works

From watchlist to position.

  1. 01

    Universe scan

    Every name on the watchlist gets scored daily across thirteen institutional layers — quality, discount, smart-money, context.

  2. 02

    Zone gating

    Picks come from Accumulation (60–70) and Buying (70–100) zones only. Selling and Distribution names are filtered out.

  3. 03

    Confluence bonus

    Score boost when two or more smart-money layers (insider / congress / 13F / flow) all read bullish on the same name.

  4. 04

    Sector-aware sizing

    Allocator caps any single sector to prevent the portfolio from concentrating into one theme.

  5. 05

    Entry + thesis

    Every position is paired with a written thesis. Reasoning is published in the weekly memo.

  6. 06

    Exit

    Score drift below threshold triggers re-evaluation. Closed positions get reviewed honestly — including losers.

Portfolio 02

ETF Momentum

Markets reward discipline. No predictions, no gut calls, no headlines.

The ETF Momentum portfolio runs on one principle: markets reward discipline. A systematic, rules-based process screens the strongest names out of 1,000+ liquid US-listed ETFs across equities, bonds, commodities, and alternative asset classes.

Every month, each ETF is ranked on a blend of trend, momentum, volatility, and risk-adjusted return. The portfolio tilts toward genuine leadership and avoids names stuck in prolonged downtrends.

The top 10 ETFs are pulled from the top-100 ranked list. Positions are equally weighted at 10% of account value — diversified, with each winner free to drive performance. Correlation filters drop ETFs that move in lockstep, which would create hidden concentration. Result: exposure to several distinct market themes at once.

Rebalance is monthly, on the first trading day. Responsive enough to react when leadership rotates, slow enough to avoid churn. Average hold runs two to five months. When nothing in the universe clears the system's threshold, cash is the position. Discipline above exposure.

Dividends are retained and reinvested at the next rebalance. Luke contributes $1,000/month to the strategy — DCA layered on top of momentum. The strategy adapts to whatever cycle the market is in: compound over time, avoid overtrading, overconcentration, and fad-chasing.

Universe

1,000+ US-listed ETFs

Holdings

10 ETFs · equal-weight

Rebalance

Monthly · 1st trading day

Hold period

2–5 months avg

Asset classes

Equities · bonds · commodities · alts

Risk control

Cash position when threshold not met

Correlation

Lockstep filter prevents concentration

DCA layer

$1,000/mo contribution

The process

Six steps. Once a month.

  1. 01

    Universe scan

    1,000+ liquid US-listed ETFs across equities, bonds, commodities, and alternative asset classes.

  2. 02

    Multi-factor ranking

    Each ETF ranked on a blend of trend, momentum, volatility, and risk-adjusted return.

  3. 03

    Top-100 filter

    Narrow to genuine leadership candidates. Names stuck in prolonged downtrends are dropped.

  4. 04

    Correlation gate

    Filter out ETFs that move in lockstep with each other to avoid hidden concentration.

  5. 05

    Top-10 selection

    Equal-weighted at 10% of account value. Diversified, but each winner is free to drive performance.

  6. 06

    Monthly rebalance

    First trading day of the month. Cut weakness, hold winners. When nothing clears the threshold, cash is the position.

Portfolio 03

Stock Picks

High-growth small caps. Disciplined process. Real money. Public ledger.

The Stock Picks portfolio is the high-conviction lane. High-growth small caps with outlier potential — a high-risk, high-reward strategy executed with the same discipline as everything else: documented thesis, custom trailing stop, real money on the line.

Picks come through a five-step funnel. Top-down macro scan identifies the strongest markets and themes. A custom screen — proprietary models pulling from 4,300+ instruments across NYSE, AMEX, and NASDAQ — narrows that to a shortlist. Deep fundamental research trims further: financials, growth, valuation, qualified analyst takes. Technical and indicator analysis identifies the optimal entry timing. The final cut considers portfolio fit and current sector exposure. One pick per week.

The portfolio runs 30–40 positions on average — fewer during downturns, more during strength. Average hold is around four months but ranges from two weeks to two years. Losers cut fast on a custom trailing stop (price closes below, sell alert issued, exit next day). Winners run.

Returns follow a trend-following distribution: many small outcomes, a few big winners that drive the bulk of returns. A 30–40% drawdown should be expected at some point over 10 years — that's normal. The portfolio is built to withstand prolonged downturns through diversification across asset classes, geographies (via ADRs), and by only investing in what's growing. Short-term volatility is the price paid for long-term outperformance.

Reinvestment engine: on the first trading day of each month, proceeds from closed positions and dividends are redistributed equally across all open picks. Compounding by design. Minimum 10 open positions to prevent over-concentration. Minimum 5% cash reserve to avoid churn from tiny reinvestments.

The Public Challenge

$500 to $1M.

A 10-year mission to grow a real-money portfolio from $500 to $1,000,000 — full transparency, weekly picks, every trade documented. Luke contributes $550/week, increasing 10% every year.

  • $550

    /wk invested

  • 10y

    Jun 2024 → Jun 2034

  • ~17.8%

    target CAGR

Universe

4,300+ NYSE / AMEX / NASDAQ

Holdings

30–40 positions

Hold period

~4mo avg · 2 weeks – 2 years

Exit

Custom trailing stop

Style

High-growth small caps

Reinvestment

Monthly · equal-weight redistribution

Min positions

10 open · 5% cash reserve

Filters

$25M cap · $2 share · long only

How picks are chosen

Five-step funnel.

  1. 01

    Top-down macro scan

    Identify the strongest markets, sectors, and themes driving current conditions.

  2. 02

    Custom screening

    Proprietary screens pull from 4,300+ instruments across NYSE, AMEX, and NASDAQ. Output: a tight shortlist.

  3. 03

    Deep fundamental research

    Financials, growth, valuation, and qualified analyst takes. Trim the shortlist to candidates that hold up.

  4. 04

    Technical & indicator timing

    Custom fundamental and technical indicators identify the optimal entry timing.

  5. 05

    Portfolio fit + final pick

    Sector exposure and risk balance considered. One pick per week makes the cut.

What to expect

Trend-following distribution.

Many small outcomes. A few big winners that drive the bulk of returns. The tail is where the strategy actually compounds.

  • 20–40%

    Small to moderate losses

    Cut quickly. Trailing stop fires.

  • 20–40%

    Small to moderate wins

    Consistent, smaller returns.

  • 40–100%

    Big winners

    The real bulk drivers.

  • 100%+

    Outliers

    Where the strategy actually compounds.

The weekly cycle

From entry to exit.

  • Monday

    Luke buys

    $550 invested in a real-money account at a random time. Entry price posted to open positions.

  • 1st of month

    Performance report

    Monthly update on portfolio performance, position commentary, and market outlook.

  • When triggered

    Exit alerts

    Sell signal posted the day before exit. Custom trailing stop indicator determines exits.

Drawdowns are part of the plan

A 30–40% drawdown should be expected at some point over a 10-year horizon — that's normal. The portfolio is built to withstand prolonged downturns through diversification across asset classes, geographies, and by only investing in what's growing. Short-term volatility is the price paid for long-term outperformance.

Want them all?

Red Pill includes Nova Fund, ETF Momentum, and Stock Picks — auto-tracked inside the members area, with weekly memos and full thesis on every entry.

See membership

Free Your Mind · Free weekly newsletter

Want a taste of the framework first?

The free newsletter walks one ticker per issue through the same Quality × Discount × Smart-money lens we use to build these portfolios. No commitment — see how we think before you commit.

Educational content only. Past performance does not indicate future results. Trading involves substantial risk of loss.

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