Description
This portfolio employs a strategic approach to buying and selling positions, aiming to outperform a conventional buy-and-hold strategy for the general market with reduced volatility. It presents a viable alternative and complement for long-term position investors who may have idle cash that requires active management.
The portfolio maintains a fully invested position in the market at all times, but it selectively adjusts its allocations on a weekly basis.
The underlying strategy involves utilizing a momentum indicator to categorize assets and then implementing a minimum variance allocation for determining asset positions. A 6% stop loss is employed on the portfolio, but it will re-enter at the subsequent signal or the commencement of week trading.
The following ETFs are utilized, with the majority being unleveraged:
| ETF | Ticker | Leverage |
|---|---|---|
| SPDR Gold Shares | GLD | 1x |
| Invesco QQQ Trust | QQQ | 1x |
| SPDR S&P 500 ETF Trust | SPY | 1x |
| iShares MSCI Emerging Markets ETF | EEM | 1x |
| Invesco DB US Dollar Bullish | UUP | 1x |
| ProShares Ultra 20+ Year Treasury | UBT | 2x |
| iShares Micro-Cap ETF | IWC | 1x |
The use of UUP is mostly done to allow the strategy to find a neutral stance. Cash could be used here but over history UUP is better.
The graph above represents the equity from following the portfolio in the past.
In the Details section below, the Assets tab shows the range that each asset’s allocation can achieve. On the Trades tab is the historic trading record. Note though, the profit column indicates the profit to that one trade and not the portfolio as a whole.
Total position allocation is set to 95.00% of account
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