Momentum Portfolios

About this blog..

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.

Money Management

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.)

Momentum Portfolios

Sunday, 6 December 2015

Open Positions 6th December 2015

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