It is that time of the month. Time to sit and rotate. Or was it rotate and sit? Anyone remember that old “cut down” from the late 70s early 80s?
The Fidelity Sector Fund Rotational System Version 1 is holding one fund that is up for rotation tomorrow. The fund is FDCPX (Computers) and was purchased on 4.2.12, meaning the fund has been held for the 30 days as required by Fidelity.
It turns out that after running the rankings tonight, FDCPX is the 3rd highest ranked Fidelity Sector Fund which means it will not be sold tomorrow after all. Now that the 30 day minimum hold has been met, every night I will re-run the rankings, and if FDCPX drops out of the top three funds, it will be replaced the next day.
Which brings us to the all-important moment…What is the top-ranked Fidelity Sector fund?
- FSRPX – Retailing
- FSCPX – Consumer Discretionary
- FDCPX – Computers
- FSHOX – Construction and Housing
- FDLSX – Leisure
The best performing funds look like a contrarian’s dream.
The system is currently holding FSHOX, FDLSX, and FDCPX.
Year-to-date Version 1 of the system has net profits of 9.86% vs SPY’s net profit of 10.38%.
The chart below is of the top-ranked Fidelity Sector fund. Click to enlarge…
Ah yes, sit on it and rotate. I remember that from so long ago.
Did the SPY transitions through the 50 DMA have an effect? Maybe I missed the write-up. It looks like there was a bit of a flat spot on the equity curve.
Bozo, lol that you remember that too…
Closing beneath the SPX 50 day average caused the system to exit 2 of 3 trades as the 2 had met the 30 day minimum hold and could be sold.
However, SPX then quickly regained the 50 day average and so the system then rotated back in to the top 2 ranked funds. That is why it is fully invested in the 3 funds.
If this wasn’t what you were asking, let me know.
Are you implementing this system with your actual Fidelity account? I know you’re able to come up with the numbers, but are you testing this out prior to committing to this system?
Lurker, yes, since 2.1.2012 I am trading Version 1 of this system in my Fidelity account.
The system was designed well over 2 years ago, and then it just ran without being traded. After 2 years of promising results based on out-of-sample data, I decided it was not likely curve-fit and decided to trade it.
Like I mentioned on twitter, the service sector is where it’s at…
What’s your twitter handle?
GOODGREED