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Chip Dip Hunter

Buys semiconductor stocks when they dip sharply but are still in long-term uptrends.

By Amaltash Advisors LLC

Investment thesis

This strategy targets the semiconductor sector — one of the most powerful corners of the stock market — and looks for short-term dips within longer-term uptrends. Think of it like buying a sale on stocks that are still fundamentally climbing. It only buys when prices have pulled back sharply but the broader trend is still pointing up, and it exits once prices bounce back to a healthy level. It never shorts — this is a long-only, buy-the-dip strategy. The portfolio spreads across eight semiconductor names — including heavyweights like NVIDIA, Broadcom, and ASML — plus a small cash position that earns yield while the strategy waits for the right moment to strike. Each position has a fixed size and a built-in safety net to limit losses if a dip turns into something worse. Personality-wise, this strategy is patient and selective. It won't trade just because the market is moving — it waits for a specific combination of conditions that rarely line up all at once. When they do, it moves quickly, holds for a short window, and then steps aside. Here's a simple scenario: Imagine NVIDIA has been on a long-term upswing, but over the past two days it suddenly drops hard — maybe on a broader market selloff or a temporary scare. The strategy sees that drop as an opportunity, steps in to buy, and then waits for the bounce. Once the price recovers to a normal level, it exits and waits for the next setup. It's designed for investors who believe in semiconductors long-term but want a smarter, more systematic way to buy the dips.

How it works

  1. Waits for specific price pullbacks in quality chip stocks

  2. Exits quickly once prices bounce back to normal levels

  3. Spreads risk across eight semiconductor companies plus cash

  4. Only buys dips—never bets on prices falling

Works best when

  • When semiconductor stocks are climbing overall but hit temporary speed bumps
  • During market-wide selloffs that don't reflect chip sector fundamentals
  • When volatility spikes briefly then calms down quickly
  • In bull markets where dips get bought back up fast

Watch out for

  • When a dip turns into a real downtrend—the bounce never comes
  • During prolonged chip sector weakness or industry-wide bad news
  • When volatility stays elevated and prices keep falling after entry
  • In sideways or choppy markets where there's no clear recovery pattern

Performance

Backtested

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Hypothetical backtest results, risk numbers and stress-test outcomes are shown only to signed-in investors, after the advisory fee and alongside the S&P 500. Backtested results are not returns any account earned.

Track record

Strategy created
Jun 19, 2026
Current version
Version 3
since Jun 23, 2026
Live track record
Not yet
no combined account history

Portfolio

9 holdings · target weights for version 3, as of Jun 23, 2026. Actual positions vary with signals.

Semiconductors & related devices55.6%Unclassified22.2%Radio & tv broadcasting & communications equipment11.1%Special industry machinery, nec11.1%
HoldingTarget weightMarket cap
NVDA
NVIDIA Corporation
Semiconductors & related devices
11.1%
$4.83T
AMD
Advanced Micro Devices, Inc.
Semiconductors & related devices
11.1%
$801.64B
AVGO
Broadcom Inc.
Semiconductors & related devices
11.1%
$1.55T
MU
Micron Technology, Inc.
Semiconductors & related devices
11.1%
$899.74B
QCOM
QUALCOMM Incorporated
Radio & tv broadcasting & communications equipment
11.1%
$184.94B
LRCX
Lam Research Corporation
Special industry machinery, nec
11.1%
$277.10B
AMAT
Applied Materials, Inc.
Semiconductors & related devices
11.1%
$293.15B
SMH
VanEck Semiconductor ETF
—
11.1%
—
BIL
State Street SPDR Bloomberg 1-3 Month T-Bill ETF
—
11.1%
—

Risk & rules

The automated rules that limit losses.

Per-position rules
Same for all 9 holdings · closes one position
Stop loss 6%Take profit 50%Leverage None

Stops trigger on the next available price. A price gap, overnight or in a fast market, can fill well below the 6% level.

Stress tests

Ten difficult markets, chosen in advance. Eight replay real trading days; two are modelled stand-ins.

MarketMethodResult
The Bull Run of 2016–17ModelledSign in to view
The 2020 ReboundReplaySign in to view
The 2022 SlumpReplaySign in to view
The COVID CrashReplaySign in to view
The Christmas 2018 ScareReplaySign in to view
The Year That Went NowhereModelledSign in to view
The Wild Swings of Late 2022ReplaySign in to view
The Quiet YearReplaySign in to view
The Magnificent Seven YearReplaySign in to view
When Tech Handed Over to OilReplaySign in to view

Fees

Licensing fee
$200
Once, for access
Advisory fee
Up to 1.00% a year
On deployed capital, billed on your balance
Advisory fee on $10,000 at the maximum rate
1 year
$100
3 years
$300
5 years
$500

Assumes the balance stays at $10,000. The licensing fee is charged on top, once. Spreads and regulatory fees may also apply.

What does Chip Dip Hunter hold?
Holdings (9): NVDA, AMD, AVGO, MU, QCOM, LRCX, AMAT, SMH, BIL.
How often does it check its rules?
Once a day, on daily prices.
When does this kind of strategy tend to struggle?
When a dip turns into a real downtrend—the bounce never comes; During prolonged chip sector weakness or industry-wide bad news; When volatility stays elevated and prices keep falling after entry; In sideways or choppy markets where there's no clear recovery pattern.

Important information

Risk Disclosure: Trading in financial instruments involves substantial risk, including the possible loss of your entire investment, and may not be suitable for all investors. Prices can be affected by external factors such as financial, regulatory, or political events. Trading on margin or with leverage increases potential losses. Past performance is not indicative of future results.

Not Financial Advice: The information provided on this platform is for informational purposes only and does not constitute investment, financial, or trading advice. We do not recommend any particular trading strategy or instrument. Please conduct your own research and consult with a qualified financial advisor before making investment decisions.

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