Thursday, February 02, 2023 3:13:35 PM
In all of my large accounts I now trade my Sector strategy which I started back in 4Q. I started adding sectors on Jan 4. By the 11th in was in 9 sectors. Yesterday I added XLP (cons staples) for the first time and have yet to buy into in XLV (healthcare). I am now long in 8 sectors.
In my IRA I trade this strategy only at 110% investment. That means that when I am fully invested, I will be at the equivalent of 110% of my cash. I stared at 24% on Jan 4 and averaged about 85% for most of Jan. I am currently at 87%. XLV is 15.8% of the S&P so that is a good part of what is missing.
The account returned 4.2% for the month vs SPY of 6.3%. This is understood and acceptable because it took a few days into the year to start to get buy signals.
In my IB account I invest at 120% and do a few other things so I yielded 4.8% for the month.
To avoid going on margin I buy all TQQQ or partial when I get a XLK signal. With XLK running about 25% of the S&P, if I buy all TQQQ, I can go to 150% before my cash is all gone.
If I were to get an XLV buy signal this is what I would do in my IB account:
* Near the close or when possible, estimate the value of my account.
* XLV is 15.8% so for IB account I would want to buy 1.2 * 15.8% of the value of the account. After the buy, the account would be holding XLV that has a value of 19% of the account NAV (net asset value).
NOTE: All my signals are EOD and most orders are MOC.
I said in my IRA I would be at 110% of cash invested if I was fully invested. My current holdings are 87% of my NAV which means I still have 23% left in cash. If I used all that cash today I would have no cash and my holdings would be 110% (87%+23%) of NAV. Hope this makes sense.
My stress from trading my accounts is gone. If I make a mistake on one of the sectors, the impact is not so big. I can wait a few days and decide what to do. As I said I bought XLP yday and it is down -1.2% today. Did I make a mistake? I will know in a few days, but for now I am holding, and it doesn’t bother me a bit. I also exited XLE yday and it is down -3.1% today, so good decision there to cut my losses at -4% for the trade which would have been down another 3%.
In my IRA I trade this strategy only at 110% investment. That means that when I am fully invested, I will be at the equivalent of 110% of my cash. I stared at 24% on Jan 4 and averaged about 85% for most of Jan. I am currently at 87%. XLV is 15.8% of the S&P so that is a good part of what is missing.
The account returned 4.2% for the month vs SPY of 6.3%. This is understood and acceptable because it took a few days into the year to start to get buy signals.
In my IB account I invest at 120% and do a few other things so I yielded 4.8% for the month.
To avoid going on margin I buy all TQQQ or partial when I get a XLK signal. With XLK running about 25% of the S&P, if I buy all TQQQ, I can go to 150% before my cash is all gone.
If I were to get an XLV buy signal this is what I would do in my IB account:
* Near the close or when possible, estimate the value of my account.
* XLV is 15.8% so for IB account I would want to buy 1.2 * 15.8% of the value of the account. After the buy, the account would be holding XLV that has a value of 19% of the account NAV (net asset value).
NOTE: All my signals are EOD and most orders are MOC.
I said in my IRA I would be at 110% of cash invested if I was fully invested. My current holdings are 87% of my NAV which means I still have 23% left in cash. If I used all that cash today I would have no cash and my holdings would be 110% (87%+23%) of NAV. Hope this makes sense.
My stress from trading my accounts is gone. If I make a mistake on one of the sectors, the impact is not so big. I can wait a few days and decide what to do. As I said I bought XLP yday and it is down -1.2% today. Did I make a mistake? I will know in a few days, but for now I am holding, and it doesn’t bother me a bit. I also exited XLE yday and it is down -3.1% today, so good decision there to cut my losses at -4% for the trade which would have been down another 3%.
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
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