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Subject:  Re: monthly update Date:  2/2/2021  3:19 AM
Author:  captainccs Number:  117097 of 118297

Darryl, your post made my Day! More than just a day.

Investing is a curious business, you can stay stuck in a rut doing Graham and Dodd stlye value investing because "this time is different" are dangerous words or you can explore ways to keep up with a fast changing world. Just a short while ago who would have thought that a rag tag bunch of Baker Street Irregulars could beat the Wall Street Powers that Be!

As one reads the literature one encounters hundreds of good ideas from investors, traders, speculators, and others. Maybe the most fundamental principle is that The Market is a complex system. Once you accept that the whole picture changes. No longer do simple connect the dots systems produce outstanding results. That's the reason why Graham and Dodd, while fundamentally correct, is outmoded. The concept of complex systems being "Evolving Fitness Landscapes" is very powerful. Just because something works best today does not mean it will tomorrow. The other players on the fitness landscape are doing their best to get ahead. The GameStop Game was just such a gambit!

The rules that govern complex system tend to be very simple. An ant colony is a complex system. How much intelligence do ants have? How do they know the way home? No GPS, no sextant, no compass. Just follow the smell, chances are they it's your best bet. Others just follow the light. Flocks of birds follow three or four simple rules, fly in the direction of the other birds, stay at reasonable distance from your neighbors, and... Check out the rules of the computer Game of Life. Similar to the rules of Go, a game more difficult than chess yet with simpler rules than chess!

Both the Covered Call Selector and the Captain's ARK are based on simple rules.

The reason I have not paid much attention to covered calls lately is because currently three quarters of my portfolio are dedicated to growth and less than a quarter to income. After all the driver IS my financial eggs nest! 😇

I don't need the income at this point so the goal is to increase the portfolio by 2% compounded weekly. This translates to 9% compounded per month.

...the port is up 42.5% which is 7.3% per month. Not quite the 9% I'm looking for...

On a yearly basis 9% a month is 181%
On a yearly basis 7.3% a month is 133%

In the real world when you aim for 9 you get 7.3! You'll find very few investors beating that!

Based on just nine trading days The Captain's ARK has produced 0.3% per day which is 88% per year but there were two GameStop debacle days in those nine.

I wonder which of the two methods will give the best results. The Captain's ARK is much less work intensive, instead of weekly updates once a month or once a quarter should be sufficient.

Thanks for the feedback!

Denny Schlesinger
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