Hi Chris - You're amazing! How do you find time for all this and school too?! Nice chart on FSPTX!
Among the things I consider when investing in sector funds:
1. I need to deploy ALL my money. When I get a sell on one or more funds, I need to exchange the proceeds into the strongest fund(s). I need to have a method for determining both of these (Sell and Buy).
2. I need to know at which point the fund(s) I'm in change from just a short-term correction, to an actual change in trend.
3. I've determined to invest in 1, 2, or 3 - never more than 3. I need to know how to determine which one(s).
4. If I'm in more than one, I need to see synergy from the combination in producing a greater return, with less risk, than the sum of of the individual funds.
5. I need to beat the buy-and-hold of the overall market, or it's not worth trading.
6. I need to use the power of the computer to measure the statistical MPT values of Alpha, Sharpe, Treynor, R-Squared, Return over various time periods,and measure how well the funds trend, so that I have the edge over the overall market.
7. I need to keep ALL the money invested as much as possible because that's what the fund managers are doing -but- -and-
8. I don't consider Drawdown, Recovery, or Ulcer Index because I am continually aware of market timing and act accordingly. (All ships rising and falling with the tide)
All these considerations, then, put a system together with the proper selection of funds, and the proper use of optimization, to come up with a model that continues to remain robust and produce consistently-high returns into the future - A system that will not require me to follow the market each minute of the trading day - This is what I'm striving for! A lot of work developing it!
But, in the end, after having achieved all that, I will be able to confidently follow the system through the inevitable drawdown periods, to produce great results that, using the miracle of compound
growth, grow even more hyperbolically over time - That's what I want!
With your very-busy life, can you spare enough time to help me develop such a system? Because it does take a commitment, and even then there's no guarantee of success, I can understand if you would decline
to participate. You know, we would both be learning together because, although I realize the problems, I do not have the solutions to all of them. Please think it over and let me know...
The very best to you! Skipperr |
