Combining Index and Sector Beta with Fibonacci-Based Position Sizing
Summary
The post outlines a proposed equity workflow that links market breadth, sector selection, stock screening, and portfolio exposure. It would compare broad-market indices with industry or concept indices using beta, select sectors with higher beta, then choose stocks from those groups based on quantified company performance and alignment between price and trading volume. It also proposes using Fibonacci levels and probability or statistical analysis to estimate where an index sits between support and resistance, then adjusting position size accordingly.
The author presents this as a desired strategy for an automated agent to implement, not as a demonstrated system. The post gives no precise beta window, stock-screening rules, support and resistance calculation, sizing formula, backtest, or performance evidence. It therefore conveys a strategy concept, while leaving key definitions and validation work unresolved.
Key ideas
- The proposed process ranks sectors by beta relative to broad-market indices.
- Stocks would be selected within higher-beta sectors using company metrics and price-volume alignment.
- Index location between support and resistance would inform position sizing.
- The post describes desired functionality but supplies no formulas, backtest, or performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.