Portfolio123 learning center. Learn advanced stock market investment concepts by following an expert user. Market timing, sector rotation, momentum trading, Exchange Traded Funds.
Dogs of the Dow
This tutorial demonstrates stock holdings reconstitution separate from rebalancing to equal weight using the popular Dogs of the Dog investment strategy. Read More ...
An alternative to diversified holdings is to select niche markets destined for sustained future growth, such as Cloud Computing. Read More ...
How To ...
- Work With Time Periods and Offsets
- Copy an ETF Ranking System to s Stock Ranking System
- Separate Portfolio Reconstitution From Rebalancing
- Screen For Large One-Day Price Drops
- Maintain Continuity Between Old and New GICS Sectors
- Squeeze More Profit Per Trade Out of Your Trading System
- Optimize a simulation NOT!
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I'm continuing to work on the 100 Stock Hedge Fund but the design is coming along slowly. No progress has been made on improving the ranking system, but by adding some standard Sell rules, the simulation now has a 4.08% annualized return.
I'm starting to design a fully hedged 100 stock high liquidity portfolio based on the S&P 500 sector weight tracking technique that I described in S&P 500 Sector Tracking. I will be reporting my progress over the next several posts.
The Portfolio123 screener is typically used to find stocks or ETFs with specific characteristics, or as decribed in the last post, to get a handle on current/future trends. But the screener is also a very convenient tool for evaluating stock factors for use in ranking systems.
The Portfolio123 screener is a valuable tool for screening stocks for value metrics and other parameters. But it can also be used to predict the future, and tell the investor where to allocate his or her money. This post provides an example of how to do that.
The S&P 500 index attempts to be reflective of the various sectors in the U.S. economy. Thus a portfolio with sector weights similar to the S&P 500 should also be reflective of the US economy. This post demonstrates how to approximately mimic the sector weights of the S&P 500 in a portfolio with fewer stocks.
In the post How To Overweight One Sector In A Portfolio, I described how to increase the weighting of one sector relative to the others. Today, I will show how to overweight a sector based on recent sector performance.
For some portfolios, it may be desirable to overweight holdings in one sector relative to the remaining ten sectors, presumably which will be equally weighted. There is a simple way of achieving this goal.
In Sector Rotation And Market Timing Combined Part 3 - A New Market Timer, a new market timer signal based on the "Market Wheel", was developed. In Part 4, this indicator is added to the suite of indicators that provide a bull/bear consensus, deciding whether to be invested in the market with one of nine sector ETFs, or out of the market holding 10Y Treasury Notes (ETF Symbol: IEF).
In Sector Rotation And Market Timing Combined Part 1 and Part 2, the Market Wheel was introduced and nine custom series were created. If you have read part 1 and 2, and built the custom series, then you are prepared for Part 3. If you haven't done so then please go back to Part 1. In Part 3, a new market timer is built based on the sector rotation Market Wheel.
Part 1 of Sector Rotation And Market Timing Combined provided an overview of the sector rotation model and new market timing indicator. Part 2 describes how to set up the nine custom series representing the Income Available to Common / Market Capitalization aggregates for the nine sectors on the Market Wheel.