Wednesday, February 16, 2011

Updates to Top 24 ETF Portfolio for 2/17

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Here are the changes to the Top 25 ETF portfolio going into Thursday, 2/17.  The topic title is correct, the portfolio will hold 24, not 25, after this realignment round -- I intend to scale downwards per week, watching the statistics on the trades.

Positions will be sold on the open and new positions added after they have all settled (Marketocracy isn't instantaneous -- it needs volume in the market to sell the the position, so it takes time):

Sell
DAG
DBA
IEZ
ITB
IYE
RJA
SOXL
VDE
XLE

Buy
DDM
DRN
MWJ
ROM
RSU
UDOW
USD
XSD

*** Note that we are buying 1 less than we sold; I am going to scale into less of a "Top 25" and more of a "Top X", where X will settle in between 7 and 17 (undetermined yet).  25 is simply too many to handle but I have too much back-tested data to make an abrupt change.  Hence, I will be holding 24, not 25, stocks after this purchase round, and will decrease it weekly as we go forward until I can see the statistics start to expand faster in variance than what I'm comfortable with.

Hold
BGU
DIG
ERX
FAS
IEO
MVV
OIH
QLD
SSO
TNA
TQQQ
TYH
UPRO
UYG
UYM
XOP

A performance graph can be found at the following URL:  click me  The portfolio is shown in solid gold and the other major indexes are in the thinner lines.

Individual positions, prior to realignment on Thursday, are as follows:



As with all my images, right-click on it to open in a new tab or window.

I'm trading this in my actual account.  Here's the equity curve since inception on 1/14/11:


The account is up 2.18% for the month (since inception), with a total drawdown of 1.57%.  One month doesn't a year make but it's a start...

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Under no circumstances am I advocating that you follow me on this.  This is a test portfolio that I choose to use this strategy.  Please read the disclaimer to the left of this blog; continued following of this explicitly conveys your acceptance of the disclaimer.

Regards,

pgd