German Tech Equal-Weight

The trading strategy is fundamentally aimed at following a quantitative, systematic model that focuses strictly on liquid shares from the German technology sector. In my view, the allocation should generally be structured using a disciplined equilibrium matrix of around 3.33 per cent per active position, which is intended to structurally avoid concentration shocks in individual shares. The specific decision-making and stock-selection process should, for example, be based on a combination of fundamental analysis – such as companies’ margin resilience, revenue growth metrics and balance sheet health – in conjunction with technical trend indicators. Systematic rebalancing adjustments are to be carried out regularly in order to remove what I consider to be overvalued short-term winners from the wikifolio and to reallocate capital to what I consider to be undervalued technology companies within the selected universe. Given the intended rule-based frequency of rebalancing, the average holding period for the assets should generally be defined as short-term (less than one year).