Working with a Great Stock Group and Trading Strategies
Finding trading strategies that have the potential to be perennial winners can be a challenge. Over the past few months I developed 15 trading strategies after extensive optimizations for my stock group.
Now I have narrowed the 15 down to five.
My Dynamic Power strategy (50 -11) is the most aggressive with a 1655%, 11 year total return. it clobbered the market last year when almost everyone lost money or barely broke even. And so far this year it is running a 29% gain. Wow.
The Dynamic Strength-Conservative strategy (50 – 3) is the second best with an 11 year total return of 1,294%. Except for 2005 it had shown a gain every single year. While it barely made a profit last year it is up 5% so far this year.
The Dynamic Power-Conservative strategy (50 -5) is simply outstanding. Every single year has been positive! So far this year it is pretty flat with a 1% gain, but if history proves anything, this strategy will turn a profit before the year ends.
The total ROI champ is the Dynamic Strength strategy (50 -13). It is very different from the others, but very interesting. It lost money last year but it is pulling ahead so far this year. The total 11 year return is a whopping 5,420% or 43% compound annual – all of which smothers the 6% – 8% that most investors shoot for.
The other Dynamic Strength strategy (50 -1) is #2 in total return with 3,151% and an annualized result of 36%. While it was only fair last year with a 3% gain, this year it is up an amazing 15%.
How did I arrive at these five? I eliminated those with the most losing years and then concentrated on performance for the last 2 – 4 years.
How can you use these strategies?
Remember, I advocate following 2 or 3, sometimes four trading strategies at all times. In this way you can switch to the current best performer. Regardless of if you are going to invest using just one strategy or two or three I would suggest a variation of my 3 Step process:
- Look at a Mixed Combo Chart and compare the performance for these five all on the one chart. If one is nose-diving – don’t use that strategy
- Look at the Symbol Charts for each recommend ticker symbol
- Moving Average chart – is it in or heading into buy territory
- Stochastic chart – is it pointing to buy or heading up
- Equity chart – is it above its equity curve