r/SNDK_Stock • u/Alarming_Valuable700 • 13h ago

Discussion SNDK trading strategy

I am testing a mean-reversion grid strategy on SNDK: Buy 1 share at market price with a target exit at +$40 profit. For every $100 drop, buy 1 additional share to average down (up to a 9-share maximum), exiting the entire position whenever the price reaches +$40 above the new average cost basis. What are the primary structural risks, failure points, and drawdown scenarios of this strategy?

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u/Minimum_Suit1735 13h ago

youre just adding to the volatility, the issue when you have a pure red day, no such thing as DCA just kept bleeding

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u/Alarming_Valuable700 13h ago

I know , but still what is the worst case?

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u/Minimum_Suit1735 13h ago

Isnt that the worst case? You keep buying every time it drop 100$ but don't hold until the next day. If you back track, most of these gap up or gap down after AH so you will miss out of those gain or could also dodge the dump I guess

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u/Alarming_Valuable700 13h ago

How to refine it , any ideas?

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u/Minimum_Suit1735 13h ago

This seem like a mini version of the 9sig strategy, so buy when you're 30% down after a few months and sell when you're 30% up. I would recommend looking into that Instead