On Starting
| Portfolio | APR | 1 Year | 3 Year | 5 Year |
|---|---|---|---|---|
| Playground | 41.26% | 18.88% | 42.94% | 52.78% |
| SleepWell | 12.31% | 9.16% | 6.64% | 8.65% |
The two portfolios, Playground and SleepWell attempt to achieve different objectives.
Playground is the more aggressive of the two and takes on more risk. It mitigates that risk by engaging several sub-strategies that only enter the market for relatively short periods of time.
SleepWell behaves in a more sedate manner but stays 100% committed to the market at all times. This portfolio only uses 7 assets in all, allocating different amounts to only three in any one week. The use of UUP is basically a neutral position.
As a starting point, allocating some money to SleepWell would be reasonable. As portfolios go, this simmers in the background, quietly making progress at a relatively slow pace. Over its history, it has yielded about 12% per year. That equates to about 1% per month.
This will require, checking the allocations and adjusting the positions over the weekend. There have been occasions where stops get hit, this is rare but it does happen. The daily email will indicate this change.
Next Steps
With the above in place, maybe then consider the Playground and what it is doing. One could reserve a portion of the SleepWell allocation and use it for the Playground trades. The daily email or changes on this site need to be followed and trades placed to execute at the market open.
A Consideration
Usually, the Playground portfolio is not fully committed, leaving a portion in cash. Instead of cash, this could be apportioned to the SleepWell portfolio while it is not needed. This of coarse places more emphasis on proper management but it is effective.
A Spreadsheet to help manage things
This Google Sheets Document may be useful in managing the day to day changes needed. Make a copy and change to your needs.