rocketing

Trading idea – “Rocketing” Cornerstones The “Rocketing” strategy focuses on identifying stocks at the very beginning of a strong upward trend — right when they are about to “take off.” It combines strict fundamental undervaluation with early technical momentum signals. The core belief is that high-quality, undervalued companies that begin to show breakout price action have a higher probability of sustained multi-month performance. Assets traded Primarily equities from the wikifolio investment universe that are part of major indices such as Russell 2000, S&P 500, MSCI World, DAX, MDAX, and other international large- and mid-cap listings. Trading criteria • Fundamental filter: Price/Earnings to Growth ratio (PEG) ≤ 0.8 to ensure undervaluation relative to growth potential. • Technical triggers: At least three of the following four signals must be met: 1. 20-day EMA > 50-day EMA with both moving averages rising 2. Price closes at a 52-week high (breakout) 3. Relative volume ≥ 2× the 20-day average volume 4. Relative strength vs. benchmark index (e.g., S&P 500) ≥ +3% over last 10 trading days • Market timing: Positions are initiated shortly after breakout confirmation, preferably within 1–3 days of the trigger. Average holding period Typically several weeks to several months, holding as long as the underlying technical and fundamental picture remains intact. Positions are exited if multiple momentum signals fail or the stock shows significant technical breakdown. Decision-making sources • Automated daily screeners built on historical and real-time market data from APIs (e.g., Yahoo Finance, Financial Modeling Prep). • Fundamental data feeds for PEG ratio and earnings metrics. • Technical price and volume data from public and API-based sources. • Continuous backtesting and review of historical breakout patterns in comparable high-performing stocks (e.g., Rheinmetall, NVIDIA, Palantir, Siemens Energy, AMD).