Alpha System Trading Performance
U.S. Stock Market: +5.05%
Korean Stock Market: +0.60%
Period: Close on May 1, 2026 ~ Close on May 29, 2026
In the U.S. market, I’ve had times when weeks of small gains were wiped out by a single downturn.
The Korean market was exceptionally strong, but one of my trading strategies was out of sync with the market. As a result, that one strategy gave back most of the profits I had made.
U.S. Stock Market
SPY: +5.26% (plus two other positions)
Benchmark: +7.60%
Alpha Trading System: +5.05%
In the U.S. market, only the Brawler strategy was used.
Despite several back-and-forth battles and one major loss, the strategy’s high trading activity allowed it to recover and ultimately end the period in profit.
Korean Stock Market
KODEX Kosdaq 150: -5.80%
KODEX 200: +35.34%
Benchmark (Kosdaq 150 + Kospi 200): +14.77%
Alpha Trading System: +0.60%
In the Korean stock market, the trend has been to sell KOSDAQ stocks and buy KOSPI stocks.
More specifically, the market has continued to concentrate on buying Samsung Electronics and SK Hynix.
Even fundamentally strong companies struggled to attract attention, as market flows were heavily concentrated in the IT and semiconductor sectors.
As a result, the performance gap between individual stocks became quite significant.
I ended up giving back all of my profits through the Inverse trading strategy used in Alpha System Trading.
The Inverse strategy alone likely erased around 10% in gains. Historically, this strategy would enter only two or three times a year and had delivered both strong returns and a high win rate.
However, in May 2026, the strategy triggered several entries in a row, suffered repeated losses, and failed to retain its historical edge.
Logic Changes for June
The Brawler strategy remains largely unchanged from the previous update.
I have, however, revised the Trend-following strategy.
The previous version looked excellent based on historical statistics,but its actual performance was disappointing.
The new version is much simpler and significantly more selective, generating only about two entry signals per month on average.
In fact, the logic is so simple that many people would probably ask, “Can something this simple really work?”
As for the Inverse trading strategy, I have decided to discontinue its use in the Korean market.
The data from May 2026 showed a complete loss of edge for this strategy.
It was once a strong performer, but the recent market environment has rendered it ineffective.
At this point, it feels as though the Korean market conditions that favored this strategy may not return for another decade.
That said, I still consider the strategy to be valid in the U.S. market, where its underlying characteristics continue to appear effective..
Alpha System Trading Strategies
We run two main systems:
1. Brawler Strategy This is our “Law of Large Numbers” fighter.
Individual wins and losses aren’t dramatically different in size, but we have more winning trades than losers.
Over hundreds of fights, the edge shows up.
2. Trend-Following Strategy We try to catch short-term trends and ride them.
Backtests show high win rates, but live trading is humbler (as usual). So we trade it with small size and keep a close eye on it.
[Past Reports]
Monthly Fund Report January 2026
Monthly Fund Report February 2026
Monthly Fund Report March 2026 – Brawler’s Grit in the Fog of War
April 2026 Market Wrap-Up: Risk and Bull Market Living Together
View All Monthly Reports
