UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Jordrok Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 250298  
Subject: Jordrok's MI portfolio, episode 1 Date: 3/24/2013 10:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 9
For those who missed the pilot, it is here : http://boards.fool.com/im-going-to-try-this-mechanical-thing...

Although mungofitch suggested using the YldEarnYear screen, I went with... YldEarnYear2! Why? Well, I thought that if someone took the time to do a version 2.0, it must be an improvement, no? Ok, not always. So I checked results on backtest.org and it's almost a tie.

Problem #1 I faced with mechanical investing : all those screens on backtest.org and the infinite possibility of tweaking. What if I try this instead? Or that?

Then, I saw a post in which someone mentioned combining a YEY screen with PIH_CSO_simple. Again, back to backtest.org and that guy was onto something : putting those screens together gives surprising results.

I must confess I don't understand the PIH screen as well. But the backtests show strong and consistent results over more than 30 years. Not many monkeys could do that, right? Of course, I know that this doesn't guarantee that it will continue to do well...

Anyway, again moving just a little bit away from what was suggested, I chose to go with PIH_CSO_safe. So month 2 started with YldEarnYear2 combined with PIH_CSO_safe and hopefully, much of the tweaking is over.

The first month was positive... which means nothing. Except mentally: starting with a win just feels good. But backtesting shows that those screens pick winning stocks 63% of the time, so I'm ready for a negative month any time soon.

One element I have to consider more carefully now is commissions. When you invest with a long term outlook, a buy and a sell at $5 each allow you to make a $1,000 purchase and in the end, it costs only 1%. And 1% after, say, 3 years is almost nothing but a 1% price every month will just eat profits away. So I had to put a bigger portion of my portfolio in those picks earlier than originally planned.

So far, what I'm enjoying from this experience is that instead of having to look under many rocks to find good stocks for my extra cash, I just use the picks from the screens and I can do something else with my free time.


Jordrok
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement