After the 2025 presidential election, the KOSPI 200 showed a much stronger rally than most investors had expected
Even experienced investors probably thought at least once, “Wait… I’ve never seen this before.”
The combined weight of Samsung Electronics, Samsung Electronics Preferred, and SK Hynix in the KOSPI 200 was around 30% at the beginning of 2025.
By the end of 2025, it exceeded 33%.
In early 2026, it approached 40%,
and by May 2026, it broke through 50%.
At this point, the KOSPI 200 has practically become the “Samsung Electronics & Hynix Index.”
Of course, no one knows for sure whether this is a bubble or whether Korean IT companies are finally getting the valuation they deserve.
Only future history books will tell us.
But one thing is clear: The market structure today is very different from the one assumed in past statistics.
A Quietly Closed Strategy
The Alpha Trading System runs two strategies based on statistics and machine learning.
In May 2026, after adding the latest data, one of the strategies quietly shut down.
It was the Inverse Trading Strategy that I introduced before.
It had performed decently for several years.
However, once the recent data was included, its performance deteriorated sharply.
Right now, it is stored deep in the freezer of my mom’s refrigerator.
It may be taken out and thawed someday — just like frozen dumplings that have a long shelf life. 😂
link : https://alphasystemtrading.com/why-trading-inverse-etfs-is-so-challenging/
Long-term Moving Averages Have Become Useless
Due to the sharp rise in the Korean market, the long-term moving averages of KOSPI 200 stocks are now in a very awkward position.
Normally, when the price falls near the long-term moving average, it used to give a warning signal: “Be careful. It could become dangerous.”
But now? Stock prices have gone too far up. The long-term moving averages are stuck deep underground like a basement.
Even if they want to send a risk signal, the price is so high that it cannot even touch the line.
Because of this, the Alpha Trading System is temporarily using some risk indicators from the US market as a reference.
Perhaps these long-term moving averages are simply on a one-year vacation. When the market eventually corrects or enough time passes, they will regain their role.
Markets Change, So Strategies Must Change Too
As the market changes, some of the strategies in my systematic trading system are also being discarded or modified.
The big picture and core framework remain the same, but many details are being adjusted little by little.
I don’t know how they will look in a few years, but I continue to work hard to find the best settings every time.
Reference: The strategies of the Alpha Trading System are not fixed.
I removed the oldest data and add the newest data.
Because of this, the data is slightly updated every day, and at the end of each month, the strategies for the next month are fine-tuned.
