Whether I liked it or not, I had to make some moves today — based off the model that I built. I sold half of my TLT/GLD positions, which represented 20% of my holdings. In its stead, I bought 11 stocks, stretched across the 8 principle sectors (details in Exodus).
The top performing market cap quintile was $10-50b for the week. As such, the criteria of my screen was applied to those market caps.
I will reassess next Friday, which will inevitably mean many changes will be made, since stocks are chosen with an emphasis on chasing alpha. What that means for community members, I bought the top hybrid ranked stocks in each respective sector.
Winship ahead.
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…just shove some au/ag under the mattress and be done with it already!
.,..and have a boating accident shortly after that.
Does your system account have a filter for whether the overall market is trending or not? Because it might give you completely different signals.
Not being critical here, just curious how you manage the risk of short term reversals
Green
Yes. The model will be reassessed each Friday. The pool of stocks from which I systematically choose from is based on best performing market cap quintile (under $1b, 1b-5b, 5b-10b etc).
In the even TLT or GLD outperform all market cap classes, 10% of stocks will be sold and ferried into TLT or GLD or both.
Get it?
This way, I am constantly chasing alpha, but with an intuitive smart hedge. This hedge placed me solely in GLD/TLT over the past two weeks, both profitable trades. Now I am in stocks, with 10% still in TLT/GLD.
Seriously how is it a good idea to get long with the $VIX at the lowest .05% of it historical range a good idea? Don’t have to get short here but getting long here seems like a sideways to losing situation.
The VIX is a meaningless metric. If you are correct, my allocation will be cut by next Friday. Largely, this is an experiment in finance, live in motion. I might change the model. But the point is, there is a model and I will adhere to it.
I am trying to elevate you stock monkies to think more macro.
Pretty simple dollar is the new vix however vix above 13 markets are a sell.