I am thinking of closing P Taker soon, as it is definitely the worst performer of the 3 portfolios.
I may replace it with a new daily system which should give better entries & exits and also increase the trade frequency.
Other changes will be to initial equity to reduce brokerage drag, and the position sizing method will be changed from fixed sum to % Risk or % Volatility.
The trailing stop will change from trailing weekly bars to a close under the swing lows, and the trading universe will be increased to the entire ASX instead of just the All Ords.
Did I mention the price, volume & value filters too? :)
Am forward testing it at the moment & if it's an improvement over P Taker I plan on starting it from scratch after the Christmas holidays. Will also continue the best of the weekly portfolios for comparison.
Buy ARI for P Taker & P Hybrid
The Small Ords & below are being sold off but the Larger Caps are still going up particularly in the Materials & Resources Sectors.
ARI pays good dividends, is up the right end of town ASX 100 (Midcap 50)
& is in the right sector - Materials. Materials. Metals & Mining. Steel
Getting info from the Standard & Poors website is usually a pain in the @rse so this should be useful.
Edit: Unfortunately it turns out that the constituents lists do not show the changes made in the June 2013 quarterly rebalance.
Was just about to post Buy MTU when I discovered it goes exdiv on Monday!
Would have got the divi drop but not the divi!
As they say, "If plan A doesn't work, the alphabet has 25 more letters"
So... P Taker Buy ANZ no sells
P Hybrid no buys or sells
P Runner Sell GOLD Buy ANZ
ANZ goes exdiv early November, fully franked, last Nov paid 0.79
The two most common phrases you see on trading sites are: "Nobody ever went broke by taking a profit" & "Let your profits run & cut your losses quickly" They contradict each other, so which is true?
This Blog has evolved into a forward test of both theories.
Both portfolios* are weekly momentum/trend following systems using the same starting capital, entry and universe (ASX All Ords) but using a wide exit on P Runner and even wider on the 2sl3sdc portfolio. Exits are usually adjusted down by the dividend amount.
The 'Runner" portfolio uses a fixed position size of $5000 which was 10% of the original starting capital.
The '2SL3SDC' portfolio uses a risk adjusted position size.
Positions may be taken in the market or they may be paper trades, depending on actual available capital. Any paper trades will be taken as if they were actual trades. No 'in market' stop loss is used, risk management is done by position size and system exits.
The Total Market Value can be reconciled by subtracting the Open Holdings Gain, Earnings and Closed Equity sums from the Total Market Value to give the original starting capital of $50k for the Runner portfolio & $78k for the 2sl3sdc portfolio.
*(There were originally 3 portfolios - P Taker with a tight exit was dropped in early 2014 as it only broke even, & the P Hybrid, which under-performed P Runner, was closed in Oct 2015 and replaced by 2sl3sdc in November 2015.)