What Is an Applied Strategy?
A strategy is built from multiple components.
A strategy is a combination of components working together to interpret price, trend, volatility, and volume in a unified way.
Each one uses the various components differently:
Trend logic
Volatility handling
Volume interpretation
Different entry/exit behavior
These combinations create distinct trading behaviors.
THE Applied Strategy is the strategy whose behavior best matches the stock’s current personality.
You are not buying components.
You are buying how the components combine into the form of strategies, and how those strategies adapt to each stock over time.
Why Stock Personality Matters
Every stock has a personality — a behavioral fingerprint shaped by:
• Volatility regime
• Trend structure
• Liquidity
• Volume distribution
• Macro cycles
• Sector rotation
Market conditions AND stock personality changes over time.
A strategy that fits a stock perfectly this quarter may not fit it next quarter. This is why we do not force one strategy onto every stock. Instead, we let the stock tell us which strategy it responds to best. Our system adapts by:
Testing all strategies on every stock
Identifying the best behavioral match
Applying that strategy for the next period
Re‑evaluating quarterly. This keeps each stock aligned with the strategy that fits its personality right now, not last year.
How We Determine the Best Strategy
For each stock, we run a complete evaluation across all strategies. Each strategy is tested using institutional grade metrics:
ROI — total return
Profit Factor — quality of wins vs. losses
Efficiency — how well the strategy converts opportunity into results
Stability — consistency of behavior
Drawdown Behavior — risk profile
Trade Quality — signal integrity and execution behavior
We then select the strategy with the strongest behavioral alignment. This becomes the Applied Strategy for the next quarter. This process repeats every quarter to ensure the strategy continues to match the stock’s evolving personality.
Below are seven (7) stocks from the Money Tree portfolio. It’s will give you a general idea of how our alerts might effect your trading. The charts below show the basic information about the stocks performance over a period of time using the Money Tree Alerts. It also shows how the stocks performed trade-by-trade over the period stated.
ALPHABET, INC (GOOGL)
SUMMARY
TRADING PERIOD: 2/21/25 - 3/6/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 133.15%
NET LOSS: 0
TRADES: 4
AVG DRAWDOWN: 0.56%
EFFICIENCY: 74.62%
VARIATION: 35.74%
TIME IN MARKET: 85.49%
TRADE #1
SHORT: 2/21/25@ $182.59
COVER: 4/7/25@ $146.96
PROFIT: 19.15%
DRAWDOWN: 0.29%
EFFICIENCY: 83.66%
TRADE #3
SHORT: 2/10/26@ $318.13
COVER: 3/6/26@ $296.09
PROFIT: 6.93%
DRAWDOWN: 0.88%
EFFICIENCY: 88.27%
TRADE #2
BUY: 5/12/25@ $157.54
SELL: 1/29/26@ $328.09
PROFIT: 108.26%
DRAWDOWN: 0.86%
EFFICIENCY: 91.63 %
TRADE #4
BUY: 3/9/26@ $299.27
SELL: 3/19/26@ $304.12
PROFIT: 1.62%
DRAWDOWN: 0.22%
EFFICIENCY: 34.92%
BLOOM ENERGY GROUP (BE)
SUMMARY
TRADING PERIOD:
PROFIT FACTOR: NO LOSSES
NET PROFIT: 153.82%
NET LOSS: 0
TRADES: 3
AVG DRAWDOWN: 6.84%
EFFICIENCY: 73.44%
VARIATION: 32.95%
TIME IN MARKET: 87.05%
TRADE #1
SHORT: 9/6/24@ $10.41
COVER: 9/10/24@ $9.67
PROFIT: 7.11%
DRAWDOWN: 6.84%
EFFICIENCY:73.44%
TRADE #2
BUY: 9/18/24@ &10.10
SELL: 2/3/26@ $163.16
PROFIT: 1,515.70%
DRAWDOWN: 10.87%
EFFICIENCY: 96.54%
TRADE #3
SHORT: 3/5/26@ $153.52
COVER: 3/31/26@ $128.34
PROFIT: 16.51%
DRAWDOWN: 9.84%
EFFICIENCY: 73.44%
COINBASE GLOBAL, INC (COIN)
SUMMARY
TRADING PERIOD: 12/10/25 - 3/31/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 91.17%
NET LOSS: 0
TRADES: 4
AVG DRAWDOWN: 2.54%
EFFICIENCY: 68.76
VARIATION: 15.29%
TIME IN MARKET: 65.78%
TRADE #1
SHORT: 12/10/25@ $273.26
COVER: 12/20/25@ $233.17
PROFIT: 14.67%
DRAWDOWN: 2.22%
EFFICIENCY: 74.30%
TRADE #3
BUY: 2/13/26@ $161.66
SELL: 3/5/26@ $202.53
PROFIT: 25.28%
DRAWDOWN: 5.38%
EFFICIENCY: 67.22%
TRADE #2
SHORT: 1/9/26@ $246.19
COVER: 2/12/26@ $153.27
PROFIT: 37.74%
DRAWDOWN: 6.75%
EFFICIENCY:78.81%
TRADE #4
SHORT: 3/6/26@ $197.12
COVER: 3/31/26@ $167.03
PROFIT: 15.26%
DRAWDOWN: 8.18%
EFFICIENCY: 54.70%
DIVERSITIED HEALTH CARE, CORP(DHC)
SUMMARY
TRADING PERIOD: 7/22/25 - 3/26/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 88.11%
NET LOSS: 0
TRADES: 3
AVG DRAWDOWN: 3.36%
EFFICIENCY: 61.32%
VARIATION: 22.41%
TIME IN MARKET: 67.89%
TRADE #1
SHORT: 7/22/25@ $3.42
COVER: 7/23/25@ $3.47
PROFIT: 1.42%
DRAWDOWN: 0.85%
EFFICIENCY: 45.45%
TRADE #3
BUY: 10/31/25@ $4.25
SELL: 3/26/26@ $6.83
PROFIT: 60.71%
DRAWDOWN: 7.76%
EFFICIENCY: 68.98%
TRADE #2
BUY: 8/15/25@ $3.42
SELL: 10/7/25@ $4.31
PROFIT: 26.02%
DRAWDOWN: 1.46%
EFFICIENCY: 69.53%
ORACLE CORP (ORCL)
SUMMARY
TRADING PERIOD: 12/10/25 - 3/31/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 35.15%
NET LOSS: 0
TRADES: 1
AVG DRAWDOWN: 0
EFFICIENCY: 91.92%
VARIATION: 0%
TIME IN MARKET: 71.44%
TRADE #1
SHORT: 12/10/25@219.79
COVER: 3/1/26@ $142.53
PROFIT:35.15%
DRAWDOWN:2.43%
EFFICIENCY: 85.78%
CITI GROUP, INC (C)
SUMMARY
TRADING PERIOD: 2/28/25 - 2/10/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 51.96%
NET LOSS: 0
TRADES: 7
AVG DRAWDOWN: 1.50%
EFFICIENCY: 73.40%
VARIATION: 20.48%
TIME IN MARKET: 57.33%
TRADE #5
BUY: 10/23/25@ $97.49
SELL: 12/11/25@ $111.29
PROFIT: 14.16%
DRAWDOWN: 1.69%
EFFICIENCY: 83.59%
TRADE #1
SHORT: 2/28/25@ $77.73
COVER: 4/7/25@ $58.97
PROFIT: 24.13%
DRAWDOWN: 1.93%
EFFICIENCY: 83.59%
TRADE #3
BUY: 8/8/25@ $92.15
SELL: 9/15/25@ $99.54
PROFIT: 8.02%
DRAWDOWN: 1.59%
EFFICIENCY: 77.87%
TRADE #6
SHORT: 12/31/25@ $117.04
COVER: 1/6/26@ $123.30
PROFIT:5.35%
DRAWDOWN: 0.38%
EFFICIENCY: 82.59%
TRADE #2
BUY: 6/16/25@ $78.15
SELL: 7/24/25@ $95.72
PROFIT: 22.48%
DRAWDOWN: 1.31%
EFFICIENCY: 88.74%
TRADE #4
SHORT: 9/30/25@ $101.09
COVER: 10/13/25@ $96.38
PROFIT: 4.66%
DRAWDOWN: 0.60%
EFFICIENCY: 58.58%
TRADE #7
BUY: 1/15/26@ $117.70
SELL: 2/10/26@ $123.72
PROFIT:5.11%
DRAWDOWN: 4.46%
EFFICIENCY: 47.14
NVIDIA CORP (NVDA)
SUMMARY
TRADING PERIOD: 11/20/25 - 3/19/26
PROFIT FACTOR: NO LOSSES
NET PROFIT: 63.16%
NET LOSS: 0
TRADES; 1 1 - 11 – 0 - 0
AVG DRAWDOWN: 1.63%
EFFICIENCY: 65.71 - 82.06 - 83.65
VARIATION: 20.53% - 18.75% -
TIME IN MARKET: 95,42%
TRADE #1
SHORT:11/20/25 @ $185.69
COVER: 11/25/25@ $174.98
PROFIT: 5.77%
DRAWDOWN:
EFFICIENCY: 65.15%
TRADE #7
SHORT: 1/6/26@ $188.70
COVER: 1/20/26@ $179.53
PROFIT: 4.86%
DRAWDOWN: 0
EFFICIENCY: 93.57%
TRADE #2
BUY: 11/25/25@ $174.98
SELL: 12/2/252 $181.72
PROFIT: 3.85%
DRAWDOWN: 0.16%
EFFICIENCY: 55.98%
TRADE #8
BUY: 1/20/26@ $179.53
SELL: 1/27/26@ $189.05
PROFIT: 5.30%
DRAWDOWN: 1.02%
EFFICIENCY: 76.84%
TRADE #3
SHORT: 12/2/25@ $181.72
COVER:12/17/25@ 171.29
PROFIT: 5.74%
DRAWDOWN: 3.39%
EFFICIENCY: 55.96%
TRADE #9
SHORT: 1/27/26@ $189.05
COVER: 2/4/26@ $175.40
PROFIT:7.22%
DRAWDOWN: 2.83%
EFFICIENCY: 60.45%
TRADE #4
BUY: 12/17/25@ $171.29
SELL: 12/29/25@ $187.38
PROFIT: 9.93%
DRAWDOWN: 0.21%
EFFICIENCY: 73.91%
TRADE #10
BUY: 2/4/26@ $175.40
SELL: 2/9/26@ $191.20
PROFIT: 9.01%
DRAWDOWN: 2.45%
EFFICIENCY: 69.82%
TRADE #5
SHORT: 12/29/25@ $187.38
COVER: 1/14/26@ $181.86
PROFIT: 2.95%
DRAWDOWN: 3.25%
EFFICIENCY: 43.40%
TRADE #11
SHORT: 2/9/26@ $191.20
COVER: 3/19/26
PROFIT: 6.47%
DRAWDOWN: 3.34%
EFFICIENCY: 53.80%
TRADE #6
BUY: 11/14/26@ $181.86
SELL: 11/16/26@ $188.70
PROFIT: 3.76%
DRAWDOWN: 0.57%
EFFICIENCY: 70.95%
Explanation of the terms used above.
Net Profit: The net profit or loss during the specified period. Profit is displayed as a positive number in black, Loss is displayed as a negative number in red. Net Profit = Gross Profit - Gross Loss.
Profit Factor: Displays the amount made in relation to the amount lost. This value is calculated by dividing Gross Profit by Gross Loss. By definition, a value greater than 1 means the trades have a positive net profit.
Average Efficiency: Displays the trade's ability to capture the maximum profit points from the actual trade entry and exit points, for one trade or for all trades over the entire testing period of the strategy. Efficiency is measured for Entry and Exit points, as well all overall total net profit. 100% is perfect efficiency.
Coefficient of Variation: The coefficient of variation is a measure of relative dispersion. It is the ratio of the standard deviation (σ) to the mean (μ): CV = σ / μ
It is generally expressed as a percentage. The use of coefficient of variation lies partly in the fact that the mean and standard deviation tend to change together in many strategies. A knowledge of relative variation is valuable in evaluating strategies. A smaller percentage here is considered positive for a strategy.
Avg. Value Run-Up / Drawdown
Displays the average maximum profit or loss potential of all the trades. This quantifies the strategy's "normal" profit or loss potential.
The stocks shown above represent a small portion of the full universe we evaluate and provide alters to members of the Money Tree Community.
Over 100 symbols are available to members inside the members only platform.
We welcome you to join our community and receive our valuable alerts to guide your investment decisions.