Thnx for your insight. What would you say is the easiest way to replicate your portfolio? If I understand it correctly you are using Portfolio123. I'm not that familiar with the product, but if I got a premium membership at Portfolio123, would I get access to this excellent strategy of yours and others or how does it work?
I'm based in Sweden so I have easiest access to the Nordic markets as well as most of Europe (Germany, France, etc.). Would love to try your strategy in a Nordic context as well, think it would be a real money-maker thanks to the prosperous Small-Cap dynamics here.
Hi Axel, no, the strat is capacity constrained and I need the liquidity :-) I have other strategies I do not trade, but they are more in the realm of about 25% a year. I traded them from 2011 to around 2018 and I realized those 25% a year. Take a look at p123, if you are interested shoot me a message and I can help you setting up strategies. Though they only have US and Canada data (unfortunately!!!) Best Regards Andreas
But I will get back to p123 and ask them on terms on showing the whole portfolio construction and all positions on strategies with almost no liquidity constraint. I have a nice Nasdaq 100 model, let’s see, I keep you posted!
Hi Johan, I am not allowed yet to share the positions on the model regularly, from time to time I post my positions here. But they do change week by week so please do your own due diligence. I will reach out to p123 and maybe show portfolios with no liquidity constraint on the Nasdaq 100. I keep you posted.
What I want to reach with this blog is to show that with a sub 1 Million account you can use the liquidity effect in your favor instead of mimicking big Assets under Management strategies. And yes, I want to support p123 and Darius, because I think one can learn a ton. Also, the combination is important, I took a ton of drawdowns from 2011-today. I follow Darius since 2016 and I should have listened (but I did not!), all his calls have been right since then (especially the selloff from October 2018 – January 2019 and the 2020 Crash!).
So for me its important to have a strategy and mix it with macro risk management by Darius.
thanks Andreas, also a big DD fan myself since years:) so that part of the thinking i got well but didnt get the rest fully although i liked the logic and thinking you had (and think that is the right thing to do going forward), so therefore, if possible and you are allowed, a real example would be fantastic. best/johan
Great piece, thanks for sharing. I use a live strategy similar to your base system. I like the idea of using variations and then combining into a book.
A couple of questions:
* I see you use formula weight for the individual strategies. Do you apply the unique condition (estimate revision, insider buying, net cash) as a formula weight, or as unique buy rules for each strategy? I've tried both, but can't get the same performance as you're showing.
* These are concentrated strategies, +/- 5 stocks each - have you tried with more stocks, i.e. say 10-12 per strategy? Even with 5 stocks, I can't seem to get the same performance
If you're willing to share, I'm listening. Thanks! :-)
Hi Andreas,
Thnx for your insight. What would you say is the easiest way to replicate your portfolio? If I understand it correctly you are using Portfolio123. I'm not that familiar with the product, but if I got a premium membership at Portfolio123, would I get access to this excellent strategy of yours and others or how does it work?
I'm based in Sweden so I have easiest access to the Nordic markets as well as most of Europe (Germany, France, etc.). Would love to try your strategy in a Nordic context as well, think it would be a real money-maker thanks to the prosperous Small-Cap dynamics here.
Best regards,
Axel
Hi Axel, no, the strat is capacity constrained and I need the liquidity :-) I have other strategies I do not trade, but they are more in the realm of about 25% a year. I traded them from 2011 to around 2018 and I realized those 25% a year. Take a look at p123, if you are interested shoot me a message and I can help you setting up strategies. Though they only have US and Canada data (unfortunately!!!) Best Regards Andreas
But I will get back to p123 and ask them on terms on showing the whole portfolio construction and all positions on strategies with almost no liquidity constraint. I have a nice Nasdaq 100 model, let’s see, I keep you posted!
very interesting, but maybe i miss something, or it is not possible to see the actual portfolio contruction? br/johan
Hi Johan, I am not allowed yet to share the positions on the model regularly, from time to time I post my positions here. But they do change week by week so please do your own due diligence. I will reach out to p123 and maybe show portfolios with no liquidity constraint on the Nasdaq 100. I keep you posted.
What I want to reach with this blog is to show that with a sub 1 Million account you can use the liquidity effect in your favor instead of mimicking big Assets under Management strategies. And yes, I want to support p123 and Darius, because I think one can learn a ton. Also, the combination is important, I took a ton of drawdowns from 2011-today. I follow Darius since 2016 and I should have listened (but I did not!), all his calls have been right since then (especially the selloff from October 2018 – January 2019 and the 2020 Crash!).
So for me its important to have a strategy and mix it with macro risk management by Darius.
thanks Andreas, also a big DD fan myself since years:) so that part of the thinking i got well but didnt get the rest fully although i liked the logic and thinking you had (and think that is the right thing to do going forward), so therefore, if possible and you are allowed, a real example would be fantastic. best/johan
Hello Andreas,
Great piece, thanks for sharing. I use a live strategy similar to your base system. I like the idea of using variations and then combining into a book.
A couple of questions:
* I see you use formula weight for the individual strategies. Do you apply the unique condition (estimate revision, insider buying, net cash) as a formula weight, or as unique buy rules for each strategy? I've tried both, but can't get the same performance as you're showing.
* These are concentrated strategies, +/- 5 stocks each - have you tried with more stocks, i.e. say 10-12 per strategy? Even with 5 stocks, I can't seem to get the same performance
If you're willing to share, I'm listening. Thanks! :-)