Rotational Systems

[SaidBitar]

For me it is one simple reason it is the first system and it is with another broker so i am lazy to rebalance unless it is urgent

[RobGiles]

Said Bitar wrote:

For me it is one simple reason it is the first system and it is with another broker so i am lazy to rebalance unless it is urgent

pragmatic…love it, thanks Said

[ScottMcNab]

Nick Radge wrote:

Quote:

why do you continue to trade the ASX growth portfolio

Probably the main reason is that it has done me favours since the late 90’s and from a business perspective is a major part of my reputation.

It can be easy to poke holes in it when things are a little rough, as they have been in the past few years, but when the market starts kicking, like it is now, the Growth Portfolio shines.

In the last two years as an example the XAO has returned 3.5% and with divs 14.5%. The Growth Portfolio has returned 30.9% – and more impressive is that it has only been 50% invested for a lot of that time.

I actually have a signed contract with Trish that our retirement funds will only be applied to the Growth Portfolio.

listening to this episode made me think of growth portfolio

http://mebfaber.2.cavendoclient.com/2016/08/03/podcast-episode-10-listener-qa/

couple of snips so don’t have to read or listen to entire episode

[Nick Radge]

The Autorité des Marchés Financiers, the French regulator, did a study of authorised FX brokers which found nearly 89% of clients lost money between 2009 and 2012.

Of 15,000 accounts surveyed, 13,224 lost money to the tune of E175m whilst he 1575 that made money made E13.8m.

Probably many reasons but at the end of the day, it doesn’t matter which end of town you operate at, human psychology is evenly spread across the playing field.

Conquer those demons and you will become profitable and be in that top 10%.

[RobGiles]

Interested to know how others treat the rotation process when the stocks that need to be sold don’t generate enough $$ to pay for equal weighted positions in the stocks that need to be bought? Is this where some trimming of the most profitable positions needs to occur in order to generate the necessary funds?

[SaidBitar]

Personally i buy with the available cash and i dont touch the existing positions
I do this because this is how i backtested in my backtest i allow position shrinking

[JulianCohen]

Said Bitar wrote:

Personally i buy with the available cash and i dont touch the existing positions
I do this because this is how i backtested in my backtest i allow position shrinking

I do the same thing. I just use the balance of cash on the last stock in the list if there is not enough to buy the whole position.

[RobGiles]

With the recent bout of weakness I was wanting to add to my US Momentum system. As this is a monthly rebalancing system, is it still acceptable to add capital now, or should one wait until the start of the next month (and possibly miss the pullback)?

[Author]

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