Suppose you have a screen that has been backtested at 4 week intervals, and you want to put it into practice. You run the screen and buy its picks the first week, which I'll call T+0. You're going to hold these stocks until week T+4, unless they're still selected by the screen at that time. When backtesting, you'll usually find that some starting points produce better results than others. So I began to wonder if there's something you can do to take advantage of the intervening weeks (T+1, T+2, and T+3)? I can think of several possibilities:(a) Nothing.(b) At T+1, run the screen again. Buy whatever stocks it picks, as if you were just starting out. This may mean buying some of the stocks you bought at T+0. Hold these until T+5. This ultimately means you'll be running four portfolios, each out of phase by a week, so you'd put only 1/4 as much money into each one as in (a).(c) At T+1, run the screen again. Buy whatever stocks it picks that weren't on last week's list, and hold those until T+5. Do the same at T+2 and T+3, holding those new picks til T+6 and T+7.(d) Same as (c), but change the hold date for the T+0 stocks that were also picked at T+1 to T+5. Those that weren't picked again will still be held until T+4.Opinions?
Morganics,I think you might benefit from this:http://boards.fool.com/Message.asp?mid=24107937Jimzipcode put together a 6-part MI tutorial for newbies. The link above is to the third of the six installments, and some discussion of hold strategies is included there. When you have some time to block off, I'd also recommend reviewing the other five posts, found immediately before and after this post numerically.This was helpful to me when I started MI. It was posted in 2006 and obviously doesn't include events subsequent to then, but it is still a relevant primer IMO.Personally, I trade screens weekly, and don't face the same issues you are considering with the monthly holds.Joe
What are the links for all 6 parts? Are these much different than the work by LaPropDoc?
What are the links for all 6 parts? Are these much different than the work by LaPropDoc?If you click on the link above, it will take you to post 188478 of the MI board. Posts 188476-188481 contain all six posts. Just as quick for you to go to the link and enter the numbers in the post box than for me to post the six links individually here.I'm not familiar with the posts by LAPropDoc you mention. A quick scan through the posts by JimZipCode should tell you if they are similar. He has a table of contents at the top of each post.Joe
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