Choosing a top 6 (all in) model (lower chart) yields a very impressive RSQ and low drawdown stats, but sacrifices total returns relative to a top 1 strategy.
One variation of using this model for capital deployment would be allocation of, for example, 50% of capital to a top 1 (or 2) sort and 50% of capital to a top 6 sort. This kind of hybrid model would help insure drawdown loss while at the same time providing the opportunity for incremental market gains as the markets trend.
Actively managing the top 1 position portion of capital with the RSQ and P6 stops would also help insulate the portfolio from drawdowns. All the tools are right there.
