How Vibha Jha Won the US Investing Championship – The Strategy That Beat Everyone

Hi all, today we are deep diving into the methodology of one of the top performers in the US investing championship or USIC, Vibia J. Through

her hybrid approach to trading, Vibia generated tripledigit returns in the money manager division, managing over $1 million two years in a row, 2020 and

2021, and a respectable 70% return in 2023, followed by a 78% return in 2024.

Vibia has demonstrated remarkable consistency and exceptional returns translating decades of corporate experience into a robust hybrid trading system. Her success is particularly

system. Her success is particularly notable in her application of the CANS slim methodology to positional trading complemented by a highly effective

rules-based swing trading strategy utilizing the leveraged ETF TEQ.

While most traders will tell you to pick a lane, either be a stock picker or trade ETFs, Via's approach proves that the most successful traders don't follow rigid rules. They adapt their strategy

rigid rules. They adapt their strategy to market conditions. Vibia was a corporate executive at Etna who stumbled into trading after watching her account

drop 80% in the dotcom crash. That

devastating loss became the foundation for a methodology that would eventually compete against Wall Street's finest.

We'll break down her complete hybrid system, when she trades individual stocks, when she pivots to TEQ, and most importantly, how she decides between the two.

Before diving into the hybrid approach you need to understand VBA's core philosophy. She only wants to own true

philosophy. She only wants to own true market leaders, companies with the potential to double or triple over 12 to 18 months.

In 2009, Vibia discovered the Canslim methodology through a newsletter that analyzed its performance. The analysis

showed that Canlim had returned 35.2% per year over an 11-year period. This

revelation appealed to her long-term goal of trying to triple or double her money every 3 to 5 years. Realizing a

35% annual return could almost double capital every two years she committed to learning the system using the book How to Make Money in

Stocks as her primary guide alongside a temporary subscription to IBD, Investors Business Daily.

Her screening process starts with the IBD50 sector leaders and IPO leaders.

But her trading approach does not stop at the fundamentals. Vibia demands both fundamental excellence and technical setup alignment. For fundamentals, she

setup alignment. For fundamentals, she requires quarterly earnings and sales growth of 25% or higher, preferring 30 to 35% or more with particular interest

if earnings are 70% or higher. She looks

for high ratings EPS composite and RS ratings generally above 95. and she also looks for increasing institutional support through the accumulation

distribution rating and number of funds.

While fundamentals help in identifying suitable trading candidates, entries are always based on technicals. Though she

uses weekly charts for overall direction, she executes buys using the daily chart. She prefers entering when a

daily chart. She prefers entering when a stock is emerging from a stage one or stage two base, often favoring classic bases like the cup with handle and

double bottoms. She aims to buy when the stock is retaking the 50-day or 10 week moving average, ideally making higher lows.

Here is how Via sizes trading positions.

She generally initiates a position with no more than 10% of her portfolio and aims to hold 6 to eight individual stocks. To time the trades well, she

stocks. To time the trades well, she avoids buying too close to earnings reports, typically waiting until earnings have been released unless the report is at least a month away.

She adds to existing positions up to 12.5% to 15% total position when the stock bounces off the 50-day or 10 week

moving average for the first time or forms its first 3 weeks tight pattern.

Let's now talk about risk management.

Vibilla realized that the biggest improvement to her performance was limiting losses. She employs a technical

limiting losses. She employs a technical stop-loss rather than a rigid 7 to 8% numerical stop. She sets her stop based

numerical stop. She sets her stop based on the 10 week or 50-day moving average.

And when she buys, she aims to be within 8% of that technical stop-loss level.

For profitable positions, Vibilla has multiple exit rules.

Firstly, the moving average violation.

She will sell if the stock severely undercuts the 10-week moving average or the 50-day moving average. If the stock does this and she has already achieved

her desired gain, she is out for sure.

Then there's the gap down. A significant

gap down such as a 20some% drop often caused by earnings is a clear technical sell signal and she will exit immediately.

Via's longerterm 12 to 18month holding period means she also exits based on changes to the underlying business such as a loss of conviction.

She will exit sooner if the business strategy has changed, the leadership has changed, or if she no longer has conviction in the company and weaker holdings. When the overall

market shows signs of a deeper correction, she'll get rid of her weaker performers first to reduce exposure.

She also uses her quarterly review process to ensure capital is allocated efficiently. In the review, she will

efficiently. In the review, she will sell a stock that has achieved a good gain, say a 70% return, if she has a ry on a new investment on her A-list that

she believes has the potential for a higher return, say a 100% potential.

She tolerates pullbacks of 5 to 8% within the context of a larger uptrend especially if the volume is low, noting that she often waits until the end of the week to see if things smooth

themselves out.

Here's the part that separates Villa from most swing traders. When individual

stock setups dry up, which happens regularly in choppy markets, she doesn't sit in cash. She pivots to swing trading the TleQ

a 3x leveraged ETF tracking the NASDAQ 100 with concentrated positions.

Let's first understand the merits for TleQ utilization.

Firstly, there's a tax advantage. She

uses TEQ extensively in her IRA accounts because she does not have to worry about the tax implications of short-term gains.

Secondly, market exposure and leverage.

The strategy originated when she found that many companies meeting her strict cans slim criteria with the massive growth stocks like the Magnificent 7.

Since these were already so large, she felt they were less likely to double or triple quickly compared to smaller market leaders. Tle Q allows her to gain

market leaders. Tle Q allows her to gain leveraged exposure to those strong names for an oversized return.

Thirdly, a market entry tool. When the

market turns around after a deep correction, she uses TEQ as her initial entry strategy, often entering around day four or five of a rally, even before

a formal follow-through day. This

ensures she is invested while she takes time to find the best six to eight individual stock setups. Once she

identifies those individual positions she starts selling down the TEQ to transition into stocks.

Her TEQ strategy isn't random. She

tracks specific metrics on a spreadsheet, percentage moves from peaks to troughs, number of days for each swing, and volume characteristics.

Over years of observation, she identified that TEQ typically delivers 20 to 25% swings multiple times per year. Here's her systematic approach.

year. Here's her systematic approach.

She enters Tle Q positions when it gets close to the 50-day or 21-day moving average after a 10 to 15% pullback.

She will initiate a buy as the price begins to turn around and make higher highs.

She follows a different position sizing rule for the Tle Q, generally initiating positions at 25% of the portfolio dedicated to the strategy, sometimes

going as high as 50%.

In Roth accounts, she has sized positions up to 90 or 100%.

She tries to maintain a 25% core position in TleQ as long as the overall market remains in a long-term stage 2 uptrend.

For exits, Tleq is a primary vehicle for selling into strength. Vibilla aims to capitalize on moves of 20% or higher. In

contrast to her defensive selling approach for individual positions she tracks specific metrics, peaks bottoms, duration of moves to understand

the pattern of TleQ swings within the current market cycle.

Vibilla uses a comprehensive checklist of specific rules-based sell signals.

She does not sell everything at once but sells in chunks like 10% blocks as multiple signals are triggered. Here is

the TEQ Q selling checklist.

A new 52- week high. She starts watching closely when TEQ makes a new 52- week high, anticipating potential resistance or profit taking.

Declining volume on new highs. New highs

made with declining volume are viewed as a warning sign.

Distribution days. When the NASDAQ index accumulates four to five distribution days, she becomes more aggressive in locking in gains.

10day moving average violation.

She sells if TEQ gives up the 10-day moving average and especially if this occurs on rising volume.

Consecutive down days. If there are three consecutive down days in rising volume, this triggers a sell signal.

Resistance rejection. If the price hits a known resistance level and gets rejected three times poor close/vol

a poor close and rising volume below the 10e moving average is also a key indicator.

And the bulls versus bears index. When

this index climbs above 60%, she considers this a secondary indicator that the market sentiment is becoming frothy.

Vibilla emphasizes that this strategy requires strict adherence to rules as the Tle Q is very ugly on the way down.

If she enters early during a rally, she manages risk by getting out immediately if the price undercuts the low of the rally day.

And of course, the million-doll question, how does she decide between individual stocks and the TQ?

Individual stocks get priority when three conditions align. strong market

environment with minimal distribution days, multiple stocks meeting her fundamental criteria appearing on IBD lists, and clear technical setups with

proper base formations.

TleQ becomes a focus when individual setups are scarce, the market is emerging from a correction, but individual stocks haven't formed proper bases yet, or when she needs liquidity

to capture shorterterm market swings without tax implications in retirement accounts. Here's

accounts. Here's a crucial insight from her 2023 performance. Seven of her individual

performance. Seven of her individual stock trades were losers, but her overall return was still impressive because the three winners were four

times larger than the combined losses.

Meanwhile, Tleq swing trading provided consistent 20 to 25% gains multiple times throughout the year, contributing a bulk of 2023 returns.

This reveals the psychological advantage of the hybrid approach. When individual

stockpicking becomes frustrating, TEQ provides a reliable alternative that keeps you engaged with the market rather than sitting in cash.

Most importantly, it acknowledges that markets change. The same strategy that

markets change. The same strategy that works brilliantly in trending markets might fail in choppy conditions. By

having two complimentary approaches, you can adapt to whatever market environment emerges.

The key insight, focus on true market leaders when individual setups are available and pivot to the TEQ when they're not. Size positions according to

they're not. Size positions according to conviction and time horizon and maintain systematic risk management for both approaches.

Remember, Villa achieved these results without margin except the default leverage in Tle Q, proving that proper strategy and risk management matters more than leverage.

Her success in the US Investing Championship demonstrates that individual traders can compete with professional money managers when they develop systematic and adaptable

approaches. And if you're serious about

approaches. And if you're serious about improving your trading results, grab your free copy of my strategy PDF using the link in the description below. It

contains my complete framework for identifying leading stocks and timing your entries using low-risk entry points and taking timely exits for maximum

profit potential.

Thanks for watching.