Rebalancing in a correction: stop loss on GOOG (04/02/2026) and tactical rotation (orders 05/02/2026)
Summary:
In early February 2026, the portfolio faced a correction with high sensitivity to technology and growth: on 03/02 it recorded an intraday drop close to -1.8% and closed almost flat; on 04/02, with a monthly drawdown close to -4.8% MTD isn’t, a trailing stop loss on GOOG was triggered to reduce concentration and free up 5.6% liquidity (realized return close to 90% on the closed tranche); and on 05/02 that liquidity was reallocated without changing the indexed core, adding satellites with controlled sizing: EWS, PLUS.L, 0700.HK, GDX, and BTC.
Notes and definitions to read this article without confusion
- MTD (Month To Date): the cumulative change for the month up to the stated date.
- Trailing stop loss: a dynamic stop that follows the price and aims to protect gains if the asset pulls back.
- Convexity: exposure that tends to react non-linearly in extreme scenarios (upside or downside).
- Important: this text describes a process and an operating logic. It is not financial advice nor an invitation to replicate specific trades.
Big picture: why the portfolio felt the pressure
The backdrop was a market with pronounced dispersion. Europe showed greater resilience, the world (ACWI) advanced slightly over the observed window, and the United States weakened, with additional pressure in the Nasdaq 100. In a portfolio with a structural tilt toward growth, technology, and semiconductors, that shift in tone typically translates into more sensitive moves when flows turn defensive.
Chart window: 01/01/2026 to 05/02/2026.
| Reference | Change (chart window) | Quick read |
|---|---|---|
| EUSTX50 | +1.98% | Europe resilient in that window. |
| ACWI | +1.22% | Global slightly positive, with internal dispersion. |
| SPX500 | -1.18% | United States in negative territory. |
| NSDQ100 | -3.51% | Heavier hit to technology and growth. |
| Portfolio curve | -2.50% | Mid-range decline in the comparative window, consistent with its risk tilt. |
Key takeaway: in this regime, the question is not whether there will be swings, but whether the portfolio structure can live with them without relying on a single engine.
Timeline: what happened
03/02/2026: the warning (intraday volatility)
On 03/02 the session opened with a meaningful intraday drop (close to -1.8%) and ended with a much more contained close. The late-day recovery eased immediate tension, but did not confirm the end of the correction. The operational read was straightforward: the market was more fragile, more reactive, and that demanded discipline.
04/02/2026: trailing stop loss execution on GOOG (MTD drawdown close to -4.8%)
On 04/02, with the monthly drawdown approaching -4.8% MTD, the trailing stop loss on GOOG was triggered, designed to protect accumulated gains. The execution did not mean exiting the asset entirely: it closed tranches that had already matured and kept more recent positions, aiming to reduce concentration and regain tactical flexibility during a period of high volatility.
05/02/2026: orders sent for the rebalance
On 05/02 buy orders were placed to implement a tactical rebalance via satellites. The intent was to broaden return sources and diversify theses: developed Asia, high-quality Asian technology, gold convexity via miners, exposure to a broker sensitive to trading activity, and macro convexity via crypto.
06/02/2026: continuation and first rebound
On 06/02 a recovery close to 2% was observed, driven mainly by SCHG, SCHF, BTC, TSM, NVDA, and SCHE. It was not a victory signal, but a reminder of why the core (by weight) tends to dominate daily moves and why the structure must withstand sharp swings without depending on a single asset.
Operational changes
This table summarizes the structural change without disclosing monetary sizes. The idea is to show what was freed and how it was deployed, keeping the focus on relative weights.
| Item | Date | What happened | Impact on structure (percent only) |
|---|---|---|---|
| GOOG | 04/02/2026 | Trailing stop loss executed on mature tranches (partial exposure maintained). | Liquidity freed: ~5.6% of the portfolio. Realized return: ~90% on the closed tranche. Post-event weight (snapshot 06/02): 3.70%. |
| Tactical rotation | 05/02/2026 | Orders sent to deploy liquidity into diversified satellites. | Target allocation: EWS 1.25%, PLUS.L 1.25%, 0700.HK 1.25%, GDX 1.25%, BTC 0.60% (total: 5.6%). |
Stop loss on GOOG (04/02/2026): structural impact
In portfolios with multiple growth engines, risk is not only about which assets you choose, but how much they weigh and how they behave when the market enters a correction. In this case, the stop loss worked as an ordering mechanism: it reduced concentration in a relevant component and restored room to rebalance without making reactive decisions in the middle of the noise.
| Asset | Event | Date | Operational read | Result (percent only) |
|---|---|---|---|---|
| GOOG | Trailing stop loss executed | 04/02/2026 | Concentration reduction, risk discipline, and regained flexibility. | Approx. realized return: ~90% on the closed tranche. Liquidity freed: ~5.6%. |
Tactical rebalance (orders 05/02/2026): what was added and why
With liquidity freed, the rebalance was not framed as a bet on calling the bottom. It was framed as a structural adjustment: diversify satellites and increase optionality in a higher-volatility regime.
Collectively, the satellites play complementary roles: EWS adds developed Asia exposure, 0700.HK adds high-quality Asian growth, GDX increases sensitivity to gold via miners, PLUS.L introduces a driver linked to trading activity, and BTC adds macro optionality with controlled size.
| Ticker | Type | Role | Why it enters | Risks assumed |
|---|---|---|---|---|
| EWS | ETF | Regional diversification | Exposure to developed Asia with a financial and industrial tilt. | Regional risk and sector concentration within the index. |
| PLUS.L (Plus500) | Stock | Financial satellite | Exposure to a business sensitive to the trading cycle and volatility. | Regulatory risk and dependence on the market environment. |
| 0700.HK (Tencent) | Stock | Asia growth | Digital ecosystem with optionality if China recovers. | Regulatory risk and China macro risk. |
| GDX | ETF | Gold convexity | Higher sensitivity than physical gold due to operating leverage. | Cost, margin, and mining-cycle risk. |
| BTC | Crypto | Macro convexity | Long-term optionality with controlled size. | High volatility and deep drawdowns. |
For copiers and investors, the central point is not to replicate a specific purchase, but to understand the framework: pilot positions, thesis diversification, and concentration control. The rotation is designed to sustain an adaptable structure as regimes change, not to optimize a weekly outcome.
Current portfolio state (snapshot 06/02/2026)
The next section summarizes the portfolio’s structural map. What is truly replicable is not the detail of a single trade, but the role-based reading: what constitutes the core, what acts as a satellite, and how risk is distributed across themes, sectors, and geographies.
1) Global indexed core (approx. total: 47.86%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| SCHG | ETF | US growth | Long-term US core | 25.42% | 7.73% |
| SCHF | ETF | Developed ex US | International core | 17.34% | 13.44% |
| SCHE | ETF | Emerging markets | Emerging core | 5.10% | 10.59% |
Note: by weight, SCHG and SCHF tend to explain a large share of the portfolio’s daily moves, both in rebounds and in selloffs.
2) Technology, AI, and semiconductors (approx. total: 20.97%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| GOOG | Stock | Technology / Ads | Big Tech, reduced exposure after stop loss | 3.70% | 14.21% |
| TSM | Stock | Foundry | Chips and AI supply chain | 3.49% | 19.14% |
| NVDA | Stock | GPU | Accelerated AI | 2.19% | 7.55% |
| META | Stock | Social networks | Digital advertising | 2.02% | -10.02% |
| AMZN | Stock | Consumer / Cloud | Ecommerce and AWS | 1.96% | -10.05% |
| MSFT | Stock | Software / Cloud | AI and cloud platform | 1.30% | -14.07% |
| 0700.HK | Stock | China technology | Asia growth (Tencent) | 1.30% | 0.43% |
| ASML | Stock | Semis equipment | Critical lithography | 1.27% | 85.83% |
| 0968.HK | Stock | Solar | Energy transition | 1.08% | -1.90% |
| AMD | Stock | CPU/GPU | Data center competitor | 1.05% | -5.22% |
| 9988.HK | Stock | China ecommerce | Digital consumption and cloud | 0.98% | -5.17% |
| NFLX | Stock | Streaming | Content and subscriptions | 0.63% | -14.99% |
3) Gold, mining, and commodities (approx. total: 12.10%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| IAU | ETF | Physical gold | Safe haven and reserve | 2.61% | 19.15% |
| SHEL.L | Stock | Integrated energy | Dividend and energy | 2.61% | -1.86% |
| SPGP.L | ETF | Gold producers | Diversified mining | 2.37% | -11.02% |
| GDX | ETF | Gold miners | Gold convexity | 1.30% | 3.41% |
| AU | Stock | Gold mining | Single producer | 1.30% | 42.77% |
| 2899.HK | Stock | Diversified mining | Metals (China) | 1.04% | 17.66% |
| ANTO.L | Stock | Copper | Copper exposure and Chile | 0.87% | 18.72% |
4) Developed Asia (regional ETF) (approx. total: 2.18%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| EWS | ETF | Singapore | Developed Asia and financial hub | 2.18% | 1.38% |
5) Health, consumer, real estate, and leisure (approx. total: 7.86%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| UNH | Stock | Health / insurance | Defensive cash flow | 4.52% | -20.35% |
| NVO | Stock | Pharma | Metabolic health | 1.42% | -14.47% |
| GAW.L | Stock | Leisure | IP and community | 1.04% | 3.99% |
| O | REIT | Real estate | Rental income | 0.88% | 7.30% |
6) Financials and brokers (approx. total: 4.03%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| LSEG.L | Stock | Market infrastructure | Data and clearing | 1.69% | -11.56% |
| PLUS.L | Stock | Fintech/broker | Volume and volatility | 1.30% | -1.66% |
| HSBC | Stock | Banking | Asia/UK tilt | 1.04% | 25.29% |
7) Cryptoassets (approx. total: 4.99%)
| Asset | Type | Sector | Role | Weight | P/L |
|---|---|---|---|---|---|
| BTC | Crypto | Alternative reserve | Macro convexity | 3.82% | -27.21% |
| ETH | Crypto | On-chain infrastructure | Smart contracts | 1.17% | -44.55% |
Approximate total distribution by blocks: Core 47.86% | Tech 20.97% | Gold and commodities 12.10% | Asia (ETF) 2.18% | Defensive 7.86% | Financials 4.03% | Crypto 4.99% (total: ~100% due to rounding).
Operating framework for copiers and investors
Simple rules
- Stops: defined before the event, respected in execution, and analyzed afterward.
- Concentration: the main risk often comes from weight, not only the ticker.
- Pilot positions: test a thesis with a controlled size before scaling.
- Rebalancing: used to improve structure and diversify drivers, not to anticipate the bottom.
- Stable core: the indexed core remains the backbone and is not traded on emotions.
What to copy and what not to
- Replicable: role-based allocation (core vs satellites), size control, discipline rules, and monitoring.
- Not replicable by default: a one-off purchase on a specific date without understanding the framework and risk tolerance.
Risk management: what it means to operate with a monthly drawdown close to -4.8% MTD
A drawdown close to -4.8% MTD is not anomalous in a portfolio with meaningful exposure to growth, technology, semiconductors, and crypto. When the market penalizes risk, those areas tend to amplify the move. The operational goal is not to eliminate drawdowns, but to sustain a coherent structure, avoid impulsive decisions, and preserve the ability to adapt.
Risks consciously assumed
- Technology and semiconductors tilt.
- China risk (regulation and macro).
- Crypto with high volatility and deep drawdowns.
- Mining with cycles, costs, and variable margins.
Proposed monitoring
- Relative performance vs indices (especially SPX500 and NSDQ100 during corrections).
- Evolution of internal correlations across blocks (core, tech, gold, crypto).
- Explicit criteria to scale up or reduce satellites without altering the core.
Synthesis
The sequence of events is a central part of the analysis: on 03/02 there was intraday volatility with a recovery into the close; on 04/02 the trailing stop loss on GOOG was executed amid a monthly correction (close to -4.8% MTD), freeing liquidity and reducing concentration; and on 05/02 orders were sent for a tactical rebalance that kept the core intact and redistributed 5.6% of the portfolio into complementary satellites. The operational priority was not to be right in the short term, but to preserve discipline, structure, and tactical flexibility to keep making sound decisions in a volatile regime.
Disclaimer: this content is educational and informational and does not constitute financial advice. All investing involves risk, including losses. Past performance does not guarantee future results.
