Do you remember the strategy testing I announced a while ago? Circa 6 months ago I finished a work on a screener programmed in Strategy Desk. And I decided to put it in a forward test before I commit my own money.
You can read the article about testing a new strategy here.
I ran a back test and the results were very promising. I would say, the results were so good, that I couldn’t believe them although I ran the back test twice.
So I decided to perform a forward test to see the results in real time and when handled manually by an average investor.
So, how the strategy works?
It is for all non-dividend investors. If you believe in growth stocks, this strategy is for you.
About this strategy
We developed a proprietary ranking system which selects stocks based on their fundamental and technical data. The stocks are then evaluated and a rank is assigned to each of them. Stocks which received 100 points rank are then selected for a purchase.
You will be receiving two type of newsletters. Every week you will receive an accumulation newsletter with the stock recommendations. Twice a year you will receive a re-balancing newsletter.
During the accumulation phase you will be buying the recommended stocks. You should buy the stocks in equal amount. For example, if you have $100,000 available to invest, you may decide to invest only $3,000 in each stock. Then you will be purchasing each stock for $3,000 only and not more.
Once you buy a stock, do not buy that stock again even though the next newsletter will recommend it again, unless specifically recommended in that newsletter. You will only purchase stocks you do not own. This is very important to prevent accumulating cash in stocks you already own and having your portfolio imbalanced. If you receive a newsletter with stock recommendation and you already own all of the recommended stocks, you will ignore the entire newsletter and wait for the next one.
Once you are fully invested you stop investing and wait for a re-balancing newsletter.
Every 6th month you will receive a re-balancing newsletter. This newsletter will tell you how to re-balance your portfolio and which stocks to drop from it. Once you sell all recommended stocks you will start accumulating new stocks except those you will continue holding unless specifically mentioned in the newsletter.
You will repeat this process as long as you will become rich.
Today, my account is going to be rebalanced. That means that I am going to sell all stocks, which no longer fit my screener criteria and start accumulating new stocks.
And what is my result? As of today, I achieved 18.25% gain and I am going to lock in those profits.
Check the account here:
Do you want to see what stocks I am adding and dropping from my portfolio? Well, I am giving away a free subscription to a newsletter. If you subscribe, every week you receive an email what stocks I am adding to my portfolio. You can follow my trades and see. It’s free – for now. After my test is done, the subscription will no longer be free, but my early subscribers will be grandfathered.