Hi tffdo,
Thanks for buying my book! I hope it helps you build a trading system that suits your risk-reward level.
I have exclusively used the basic Stock Trading Riches system on my portfolio for the last 6 years, and I have beaten the S&P 500 over those 6 years:
Year, Me, S&P 500
2005, +13%, +4.91%
2006, +14%, +15.79%
2007, +22%, +5.49%
2008, -40%, -38.49%
2009, +44%, +23.5%
2010, +22%, +13%
My portfolio had a cumulative six-year return of +65.66% vs. +10% for the S&P500.
Of course, my system is flexible and you can use the book's section on rule variations to customize the system. For example, you can increase or decrease the maximum cash percentage at the portfolio level from the basic 30%. You could implement the position growth rule, or the stop loss rule, you could change the rebalance frequency, or experiment with percent triggers.
You can back-test these variations on paper with various stocks and see if they improve the system in ways that make you more comfortable.
