I have a planWe’re now 9 days in from my first buys on the US market. The overall return has been 2.6%.
I hate the way that Vector Vest shows the Annual Rate of Return to indicate how fast a portfolio is growing over a short period of time. It gives you a clue about the rough trajectory of your stocks but there is nothing to say they will continue on that course. For what it’s worth and using VV's approach the portfolio is making a little over 70% p.a. Over the same period the VVC has fallen back by 0.3% or -9% on an annualized basis. The metrics on the performance of the strategy are good.
- The A search which performs best in backtests but is risky has done well. It has chosen 8 out of the 14 shares. 6 out of 14 are winners- average increase 3.5%
- The B search picked 3 shares : 2 winners 1 looser – average increase 6.7%
- The D search also picked 3 shares : 1 winner 2 losers – average loss 11.3%.
- The first is a four week stop. This means I will start selling shares on 15th August
- The second is a 5% trailing stop which would be triggered if the market moves into a downtrend.
Those pesky UK shares
The two strategies I am using for picking shares are performing poorly (see this post for how they performed in back tests) particularly since they have been running for almost a month. The analysis does not offer much hope for an improvement over the next two months unless the market picks up strongly.
- DBH has 2 winners and six losers average loss 5.8%
- VSTPE has 2 winners 2 losers average gain 1.6%