Learn the Discipline Model Portfolio
Summary - Week Nine
You will notice a new feature in the right hand menu; Key Topics. Under Key Topics you will see Learn the Discipline. Clicking on Learn the Discipline allows you to see all the posts where we have discussed the Model Portfolio. Reading the February 7 post, if you have not already read it, will give you a better understanding of how we are managing the Model Portfolio. You can directly access that post by clicking here: http://chartsignals.blogspot.com/2009/02/coming-next-week_07.html
In the table below you will see all the positions we have opened since March 10. The positions opened and closed prior to March 10 are listed in past posts.
Since inception on Feb. 3 the portfolio has primarily been in cash. This is the first week where the portfolio has been more than 50% invested in stocks. As of Friday April 3 the portfolio is 61.42% in stocks and the balance in cash.
We entered 31 positions this week and two open postions were stopped out. There are a total of 43 positions open with a total value as of Friday $97,882. 38 positions are profitable and 5 are negative but still above their stop loss.
The portfolio is profitable by more than double the return of the SPX since Feb. 3. Risk adjusted the performance is more than three times the SPX return during the same time.
Since this is an intermediate term strategy it is still too early to make thorough evaluation and comparision. As we stated originally we expected failed positions to show early and it would only be after several weeks that some of the winners, those that follow through with an intermediate term up trend after an entry signal, would emerge. While 18 of the 38 profitable positions have more than a 10% return, the longest held position is 25 days at this point, so it won't be until next week that any positions are longer than one month.
Even though the portfolio is not old enough to do a thorough evaluation, one thing is always true and that is: It is always better to outperform than underperform the market.
(click image to enlarge)
4 comments:
Dave,
Thank you for all the work you have done on the Model Portfolio. It is helpful to see a professional demonstrate a method to manage a portfolio. I do not believe Investools addresses this concept. Wilfred
Wow, Dave, I'm wishing I had been here a long, long time ago! You offer so many tips, strategies, & insights. I'm finding this helps me to pull things together & focus on repeatable rules. Setting up a model portfolio & talking about managing it is of great interest to me. There's a lot of information out there about entering trades, but not as much for managing them over different time periods. I look foreward to your insights. Awesome stuff!!
Lois
Dave,
Do you discuss this model portfolio in a trading room or just in your blog?
David,First I would like to say thank you for all your efforts to teach us. ...Would it be ok that you add one more column in the portfolio indicating what the entry signal is for each trade? I know this initially was one green arrow method, but you also have some modification as well for some other trades. So for me to understand each trade, it will be nice to indicate the entry signal,either one green arrow, bull flag or double bottom, whatever the entry signal is for the trade. Thanks a lot.
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