Len’s Journal

[Nick Radge]

Quote:

When it went downn over 6%in one day my amygdala kicked in and I bailed. Of course it went back to breakeven after the next 3-4 days.

Have you looked at the daily P&L swings using an Excel pivot table?

[LEONARDZIR]

Nick, that is a good idea. Will take a look. Thanks

[LEONARDZIR]

Nick ran a daily P&L on one of my very volatile MR systems. Extremely useful to decide whether you can handle the volatility of a portfolio. At least 2-3 times a year there were days with big gains and big losses. Should be part of deciding whether to trade a system.

[LEONARDZIR]

Saw an interesting observation about the markets I thought I would share.

The stockmarket is the only place that when the goods go on sale everybody leaves the store.

[Nick Radge]

The problem with that analogy is that stocks aren’t ‘goods’.

A purchased item has an immediate outcome, i.e. you can use said item, even if the end game is that the item is worthless in n-years.

However, a stock can also be worthless in n-years yet has no immediate outcome, i.e. you can’t use them.

[LEONARDZIR]

Nick,
Point well taken.
I believe it was in reference to Buffet’s and Munger’s style of investing ,which is to buy a good business at a discount.

[LEONARDZIR]

May 2019 results.

US rotation -5.6%
Tradelong term – 3%
MOC B +3.8%
MR B +6.5%

Started trading a new MOC and MR the last couple of weeks with some really good profits. I am giving the results for the backtested ( results for May to show the performance during an SP downtrend. Further reporting will be just live results.

[LEONARDZIR]

not sure how the emoji sneaked in there.

[LEONARDZIR]

June 2019

USMOC +3,2%
USMR -0.02%

[LEONARDZIR]

July 2019

MOC -2.8%
MR +1.3
USRTN +2.2
TradeLT -1.85

[LEONARDZIR]

August

US MOC -0.2%
US MR (not trading, using 200ma of equity curve, currently below 200ma
US MOMO +3.7%
TLongterm -0.07%

In case anybody interested I have 4 other stock portfolios. I use a 50/50 mix of CXO Advisory momentum and value portfolios(up 12.3% for the year)
I recently added Tom Bowley’s model and income portfolios(in earningsbeats.com.) Both portfolios have stocks with great earnings that technically are in uptrends held for 3 months at a time. Since last Nov model portfolio up >45%.

Bottom line my investments are at new equity highs for the year.

[TimothyStrickland]

Len, you mentioned you were not trading US MR because equity curve 200MA? Which index are you using, I didn’t think any of them had dropped below the 200 MA, at least according to Amibroker.

[LEONARDZIR]

Tim,
I do a 200ma of my MR equity curve. I stop trading when the equity curve is below its 200ma

[TimothyStrickland]

interesting

[LEONARDZIR]

Huge 2 day loss in momentum stocks in the US markets. Big loss in my momentum systems.
Not fun.

[Author]

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