Why start with 30 shares?
Why not start with 3-5 stocks that meet your criteria?
This will give you a much better overview and you can always add more shares if things go well.
Why not start with 3-5 stocks that meet your criteria?
This will give you a much better overview and you can always add more shares if things go well.
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3Sem.
@Sansebastian The idea behind this was to diversify within the strategy and improve the success rate. For example, if all 3 stocks give false signals, I have to switch everything directly back into cash.
But of course what you say makes sense, maybe I'll start with 5 and then add more. Thank you.
But of course what you say makes sense, maybe I'll start with 5 and then add more. Thank you.
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@Simon_n When it comes to momentum, I would follow the "less is more" principle anyway 🙂
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3Sem.
@Sansebastian In what way? Do you think it would be better to filter out only the TopX by performance?
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@Simon_n if by diversify you mean that you would take shares from different sectors, then yes. Take the TopX and you're done. Backtest that and then you can always expand
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3Sem.
@Sansebastian Yes, that's what I meant, but I hadn't yet defined a clear rule for it. I would have simply taken the ones with the highest market cap from those that fulfill the rules in order to bring in some stability. But your approach also sounds very sensible, perhaps it can be combined.
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