Here’s My Quant Portfolio — It’s Absolutely Poleaxing the Benchmark

If you’re taking 100% of your investable money and trading it, you’re a god damned idiot. No one can keep hot forever and eventually mood swings and basic human err will cause you to underperform. More importantly, the lifestyle of having to rely upon swing trades during rough tapes is absolutely depressing. You cannot expect to live a long time while trading stocks for a living. I’m sure my life has been greatly curtailed by my time in money management, which is why I’ve chosen to remain out, in spite of leaving a great deal of money in fees to be had.

Below is my Quant fund for September. The idea behind the Quant is to set parameters, based on fundamental analysis and some technicals, to automate a portfolio that will outperform the market. It is not designed to crush the market, although at times it does, but instead perform with the market and a little big better. Truth be told, it’s an experiment in progress and I believe it can be improved, as anything can always be improved, and I encourage all Exodus members to create their own quantitative methods themselves — using the tools I’ve given them and Gods good grace.

The portfolio is higher by 2.5% over the past two weeks, whilst the SPY is barely up. For a diversified portfolio of fundamentally sound companies, this is outrageous outperformance.

For the October portfolio and heading into Q4, I might adjust the Quant. Although I’ve refrained from doing so throughout the year, mainly to be consistent and transparent, I’ve concluded there might be a few tweaks worthy of meddling to increase the rate of return into the best months of the year.