superstockpicker is doing extremely well

[DCA]

Month 6

    What a fun month!  SSP holding up remarkably well.  27.9% return, 5.2%/$ sold with a roll-over time of 99 days.

D

[DCA]

Month 7

     So this has been a month of buying (and not selling TIM!) which means that my reporting of the realized returns is showing not much change.

     23.55% return with the profit/dollar traded holding remarkably stable at 5.2%.

     The constant buying this month has raised the average hold time to 153 days!

     It is hard not to count those TIM eggs, but if the rooster ever crows it is looking good for the results.

D

[DCA]

Month 8

     This month we had a little selling, but only enough to hold things stable.

20.3% return.
5.2% per $ traded.
Average hold time now 187 days.

     It is looking like SSP is switching to a 'buy & hold' strategy.

D

[DCA]

Month 10

   ( I missed month 9)

Return 26.9%
6.9% per $ traded.
Average hold time 109 days.

Looks like a return to 'normal'

D

[denhams]

I (a newbie who has just started to take on the v4 portfolio himself, this morning) would like to ask someone to confirm that if the portfolio is cut to only a single stock... would the portfolio maintain a 100% invested position with zero cash - and risk taking a huge loss in the event that sole remaining position tanks for some reason? Would it not be prudent to maintain a minimum cash position at some point when there is unsatisfactory diversification?
Thank you kindly.

[bryanmcn]

I (a newbie who has just started to take on the v4 portfolio himself, this morning) would like to ask someone to confirm that if the portfolio is cut to only a single stock... would the portfolio maintain a 100% invested position with zero cash - and risk taking a huge loss in the event that sole remaining position tanks for some reason? Would it not be prudent to maintain a minimum cash position at some point when there is unsatisfactory diversification?
Thank you kindly.

Yes and yes. One of the fundamental strategies in the SSP portfolio is zero cash. The other is to reinvest all proceeds from a sales into the remaining stocks in the proper proportion that they represent since they were purchased. In other words ... you buy more of the winners and less of the losers. This is particularly hard on ones gut, especially when TIM is up 500% (at the time of writing) and the portfolio says buy more!!

I think I have this right ... right? 

[Super Stock Picker]

Hello bryanmcn,

Yes, you're totally right. We maintain no cash line and allocate the money in the open positions proportionally to their performances since the recommendation was issued.

The $50,000 virtual portfolio shows good examples of this mechanism. It is well behind regarding its updates but we'll do our best to restart from where we've left soon...

[mrrammstein]

from the way i understand it - i believe you are right on the money!!

[mrrammstein]

Hello bryanmcn,

Yes, you're totally right. We maintain no cash line and allocate the money in the open positions proportionally to their performances since the recommendation was issued.

The $50,000 virtual portfolio shows good examples of this mechanism. It is well behind regarding its updates but we'll do our best to restart from where we've left soon...

you beat me by 39 seconds lol!!!

[bryanmcn]

I believe that what makes the SSP portfolios unique are these two strategies. I have long held that holding zero cash is not only unreasonable but also creates extreme risk and volatility when the portfolio gets down to one or two positions. Similarly, rebalancing the portfolio after every sell order increases the number of transactions and therefore the slippage due to transaction fees and our inability to get the exact price thatSSP gets.
That said, it IS theoretically possible to closely duplicate a SSP portfolio's performance if you trade at market price in the last few minutes of the trading day.
I would like to see the $50,000 virtual portfolio kept up to date. Ideally SSP would post the changes the day after a new transaction. That would lessen the chance of someone making a mistake in duplicating the transaction.
One last comment - Many of us feel compelled to take profits when a stock has doubled or tripled, thus reducing our drawdown risk. SSP takes the opposite approach. If a stock rises, it is targeted as a buy when rebalancing. Sell low and buy high. That is very different from what we "text book traders" have been taught.
The SSP portfolio's success seems to indicate that a change of thinking is in order!


   

[denhams]

I suppose this (SSP strategy) would go hand-in-hand with Dennis Gartman's sentiments ,which sounds something like....

"Do MORE of what's working, and LESS of what's not."

S.

[DCA]

So here we are at a year and a day since I started following some SSP picks:

Roll over is 90 days, return has averaged 7.1% per dollar traded for a total realized return after taxes, interest, commissions, etc....


27.9%

[DCA]

And oh what the heck as an end of the year counting of chickens:

unrealized pre tax is at 150% for the year.