Archetypes · behaviour drives sizing
Eight ways a name behaves.
An archetype isn't a sector — it's a behaviour profile that the sizing rules read: a retail-squeeze name gets a hard size cap a compounder never would. Every dossier carries exactly one. Here are all eight — and what each does to position sizing.
Compounder
Generous · multi-quarter hold
Quality balance sheet, secular tailwind, multi-year hold candidate.
Names with durable earnings power and a long runway. Sizing is generous, stop discipline lenient, holding period measured in quarters or years. Earnings beats compound rather than expire.
Cyclical recovery
Regime-gated entry
Mean-reverting earnings, regime-sensitive entry.
Names that win when a specific macro regime turns. Entry is gated on the macro setup, sizing scales with cycle conviction, exit is regime-state dependent rather than price-target dependent.
Theme leader
Sized above peers
Highest-conviction name within an active theme cluster.
The cleanest pure-play within an established theme cluster. Sized higher than basket peers, but downgraded the moment the theme transitions to MATURING or SATURATED.
Special situation
Event-aware sizing
M&A, spin-off, restructuring, regulatory event.
Event-driven names where the catalyst is known and dated. Sizing is event-aware, exits are tied to event resolution rather than price action.
Earnings inflection
Binary · auto-exit window
Pre/post-print setup with an explicit binary outcome.
Names whose price gates on a single quarterly release. Entry pre-print only on confirmed bullish setup; auto-exit windows around the print.
Retail squeeze
Hard 1% cap
High-beta, short-interest-driven; hard sizing cap.
Squeeze-candidates and meme-style basket movers. Hard 1% sizing cap regardless of conviction, auto-trim on RSI > 82, never average down.
Defensive
Regime hedge
Cash-flow durable, low-beta, regime hedge.
Staples, utilities, dividend aristocrats. Used as a regime hedge during RISK-OFF; sized inversely to cyclical exposure.
Macro hedge
Balances the book, not a standalone bet
Cross-asset proxy for a thematic risk (XLE / GLD / TLT / …).
An ETF or single-name macro expression of a thematic view, held to balance portfolio beta rather than for standalone alpha.
Common questions
- What is a stock archetype?
- A behaviour profile assigned to each name. It drives position-sizing discipline and stop logic — not a sector label. orbyd uses eight: Compounder, Cyclical recovery, Theme leader, Special situation, Earnings inflection, Retail squeeze, Defensive and Macro hedge.
- How does an archetype affect position sizing?
- The sizing rules read it. A Retail-squeeze name gets a hard size cap a Compounder never would; a Defensive name is sized inversely to cyclical exposure — a regime hedge by design. The archetype sets the discipline; conviction and the regime tier set the rest.
- How many archetypes are there?
- Eight, each with a defined behaviour and sizing rule. Every dossier carries exactly one.
Archetype drives the sizing discipline; conviction and the regime tier set the rest.