Research preview

The Russell 2000 index has logged a five‑week losing streak, the longest since the first quarter of 2025. This sustained drawdown offers a natural laboratory for applying the quantitative tools taught in advanced finance courses—particularly statistical inference, bootstrap resampling, and dynamic optimization. In the following sections we translate the market event into a structured analytical framework and outline how a disciplined trading program can evaluate and potentially profit from the pattern. Understanding the Loss Streak in Context A five‑week consecutive decline in a broad small‑cap index signals more than a temporary dip; it reflects a persistent shift in market sentiment, liquidity, or macro drivers that can be quantified....