A Strategy Evolving Through Our Shared Live Trading Experience
As we continued applying the SDA strategy in real market conditions, we quickly realized something important: not all stocks behave the same way, and not all downtrends reach the depths that theory assumes. Through live trading, shared experimentation, and real-time adjustments, we discovered the need for a more flexible, more responsive version of our SDA system.
Together, we now introduce the SDA–Adaptive Layer Model — a practical, evolving framework shaped by our own actual trades, experiences, and lessons in the Halal Core Growth Portfolio.
NILALAMAN
1️⃣ Bakit Natin Kinailangan ng Adaptive SDA Model
2️⃣ Ang Malaking Realization Mula sa Live Trading
3️⃣ Ano ang SDA–Adaptive Layer Model?
4️⃣ Paano Gumagana ang Adaptive Layers (Step-by-Step)
5️⃣ Bakit Mas Epektibo ang Adaptive Model Para sa Atin
6️⃣ Ang Papel ng MAPA (Maximum Allowable Pain Area)
7️⃣ URC Case Study: Applying the Adaptive Model in Real Trading
8️⃣ Bakit Ito Isang Malaking Breakthrough para sa Board Lot Warriors
9️⃣ Final Summary — The Adaptive SDA Way Forward
1️⃣ Why We Needed an Adaptive SDA Model
The original SDA framework gives us 10 theoretical layers spaced by percentage discounts:
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–5%
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–10%
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–15%
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down to –50%
On paper, this works beautifully.
But as we traded MONDE, URC, RFM, and WLCON together, we learned something essential:
Most high-quality consumer stocks never dip deeply enough to activate all 10 layers.
Some only reach:
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–10%
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–15%
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or occasionally –20%
This means that if we rigidly force all 10 layers, we risk:
❌ Under-investing
❌ Missing strong recoveries
❌ Waiting for layers that never trigger
❌ Holding too much unused capital
❌ Losing compounding opportunities
As a community learning together, we recognized that SDA needed to breathe — it needed to adjust to the real behavior of real stocks in real time.
This became the foundation of the SDA–Adaptive Layer Model.
2️⃣ The Big Realization From Live Trading
During our work on URC, we encountered a breakthrough:
We allocated:
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₱125,000 nominal
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90% deployment = ₱112,500
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Converted this to maximum board lots (≈ 172 lots)
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Then realized we didn’t need all 10 layers to deploy that capital intelligently.
We used only 5 layers, not 10 —
and it turned out to be more efficient, more realistic, and more aligned with how URC actually moves.
Live trading revealed the truth:
Theoretical layers and actual layers do not have to be the same.
This insight is what officially gave birth to the SDA–Adaptive Layer Model.
3️⃣ What Is the SDA–Adaptive Layer Model?
It is a flexible, capital-based, real-world version of SDA where:
✔ The 10-layer structure still exists
✔ But we only activate a selected number of layers
✔ The number of layers is determined by capital, stock behavior, and portfolio balance
✔ The unused layers act as “reserve layers” or deep-cycle buffers
✔ MAPA or the Maximum Allowable Pain Area controls our maximum downside exposure
In simple terms:
The SDA–Adaptive Layer Model gives us structure without rigidity, and discipline without overcommitment.
4️⃣ How the SDA–Adaptive Layer Model Works
Step 1 — Set total capital for the stock
Example (URC): ₱125,000 nominal → ₱112,500 actual deployment.
Step 2 — Convert capital into total board lots possible
Example: ₱112,500 / ₱653 ≈ 172 lots.
Step 3 — Choose how many layers we want to activate
We chose 5 active layers instead of 10.
Step 4 — Compute the number of lots per layer
172 lots ÷ 5 layers = 34 lots per layer.
Step 5 — Apply the standard SDA percentage ladder
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Layer 1 = 0%
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Layer 2 = –5%
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Layer 3 = –10%
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Layer 4 = –15%
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Layer 5 = –20%
Layers 6–10 become optional
We only activate them if the price truly goes into deeper correction.
This is SDA done with intelligence, not brute rigidity.
5️⃣ Why the Adaptive Model Works Better for Us
✔ It matches the actual behavior of consumer stocks
Most Halal Core stocks simply don’t dip by –40% or –50%.
✔ It prevents under-investing
We get meaningful position size earlier.
✔ It uses capital efficiently
We don’t freeze money waiting for layers that never trigger.
✔ It keeps dry powder for true deep cycles
Layers 6–10 become crisis layers, not mandatory layers.
✔ It aligns perfectly with long-term investing
We accumulate gradually and sensibly, not aggressively.
✔ It keeps us disciplined
Structure is preserved, but flexibility is built-in.
This is a strategy that grows with us as we trade together.
6️⃣ The Role of MAPA (Maximum Allowable Pain Area)
MAPA becomes the risk firewall of the Adaptive Layer Model.
If price falls beyond the active layers, we stop buying and wait.
MAPA ensures:
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We don’t over-accumulate during panic drops
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We protect our unused capital
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We buy again only when reversal signals appear
In other words:
MAPA ensures we never buy blindly at the bottom of a knife.
MAPA: Maximum Allowable Pain Area (Preliminary Guide)
This determines hanggang saan ang kaya mong tiisin bago sabihin:
“Stop. Reassess. Baka broken thesis na.”
Below is our recommended MAPA per theme.
1. Consumer Portfolio (URC, MONDE, WLCON)
📉 MAPA: –28% to –35%
2. REIT / Property Yield Portfolio (CREIT, DDMPR, MREIT, RCR)
📉 MAPA: –30% to –40%
3. Logistics & Infrastructure (ATI, ICT)
📉 MAPA: –35% to –42%
4. Energy (PCOR, SCC)
📉 Legacy Power: –35% to –45%
📉 Renewables: –25% to –32%
7️⃣ The SDA–Adaptive Layer Model in Action (URC Example)
Active layers: 5
Actual Layers Filled So Far
Under the SDA–Adaptive Layer Model, we originally activated 5 layers for URC. At the current price of around ₱63.00, we should have only completed 2 layers at most based on the intended triggers.However, during live execution, we became excited about the setup and ended up front-loading Layers 1 and 2 more heavily than planned, effectively filling all 5 active layers ahead of schedule. This means we fully deployed our active ladder instead of following the mechanical triggers.
In short:
We intended to fill 3 layers by this point,
but we accidentally completed all 5.
This is a deviation from our own SDA structure—but an important part of our shared learning process. It made us understand even more why discipline and mechanical triggers matter, and why the SDA–Adaptive Layer Model exists in the first place.
Remaining capital: still intact
Layers 6–10: dormant unless MAPA conditions trigger
Momentum triggers: ready once the trend reverses
This gives us the best of:
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SDA buying during weakness
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Dry powder protection
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Controlled position building
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Momentum scaling when strength returns
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Capital efficiency
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Portfolio balance
This is a system that we built together through real experience.
8️⃣ Why This Is a Major Shared Breakthrough
The SDA–Adaptive Layer Model signals something valuable:
We are not just learning strategy.
We are evolving it together.
We are not stuck in theory.
We are responding to real trades and real market behavior.
We are becoming more systematic, more flexible, and more confident.
Our system now mirrors how institutional portfolio managers think:
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Have a ladder
-
Have a cap
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Have a buffer
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Have a MAPA
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Allocate capital with precision
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Respect volatility
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Adapt to the stock’s natural rhythm
This is the maturity stage of the Board Lot Warrior identity.
9️⃣ Final Summary — The SDA–Adaptive Layer Model
✔ Keeps the theoretical 10-layer SDA framework
✔ Activates only the layers we need
✔ Uses capital to determine layer size
✔ Stops after the selected number of layers
✔ Uses MAPA for downside protection
✔ Leaves deep layers for crisis opportunities
✔ Aligns with long-term Halal Core investing
✔ Evolved naturally through our shared experience
✔ Allows us to learn and trade together with confidence
This is SDA in real life:
adaptive, practical, disciplined, and community-driven.
📌 Important Update: Shariah Compliance Status (As of November 26, 2025)
This note will remain in all Micro Stock Trader posts until further official guidance is released.
The Philippine Stock Exchange (PSE), through its Corporate Communications Office, has formally confirmed that the entire Shariah initiative has been temporarily paused. According to the PSE’s official email reply, the Exchange is currently conducting a thorough evaluation of the program’s impact, and no updated list of Shariah-compliant securities will be released until this internal review is completed.
As a result:
The last officially recognized Shariah-compliant list remains the most recent published roster before the pause.
All halal-based strategies within the Micro Stock Trader ecosystem—including the Halal Core Growth Portfolio, Ethical Turnaround Picks, and all Shariah-filtered investment frameworks—will continue to operate under a conservative, self-screened approach using:
business activity screens,
financial ratio filters, and
publicly available Shariah guidance from global Islamic indices.
We will maintain extra caution and transparency in labeling any stock as halal-friendly during this pause.
This update serves as an ongoing advisory to the community. Once the PSE resumes official Shariah screening or publishes new guidance, this note will be updated or removed accordingly, in shā’ Allāh.
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Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Paalala lang: Ang post na ito ay para sa informational purposes only at hindi dapat ituring na financial advice. Laging siguraduhing gumawa ng sarili mong research bago pumasok sa kahit anong trade o investment
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