Momentum v4 Question

[triplec316]

Hi,

   I'm planning to follow the momentum V4 portfolio. My total investment is 5000$. The new order for 2007-08-20 is buy DRX.TO and ALS.TO. TIM.TO and CUQ.TO are already perfoming in the portfolio. Should I calculate in your formula with 4000$ and leave 1000$ for future order, or all my 5000$ into the 4 stocks?


Thanks for your help

[Super Stock Picker]

Hello,

I guess that you have already read our posts about the virtual portfolios we maintain on this forum:
Virtual $5,000 portfolio
Virtual $50,000 portfolio

As those examples show, we would recommend not to rebalance too often a portfolio of $5,000.

Given that the statistics for the momentum v4 portfolio are:
Average number of stocks on hold: 2.9907122
Minimum number of stocks on hold: 1
Maximum number of stocks on hold: 6

We would then recommend to divide the $5,000 between the 4 positions.

I hope that helps.

[triplec316]

Thanks!