Quick update on my discovery phase :D
March was wild in more ways than one.
Most of it is familiar to you and you are experiencing it with your portfolios as well. In addition to the news ups and downs surrounding the Iran war, Google also caused quite a downward movement with the news that it could reduce the memory requirements of AI models to a sixth.
I personally carried out my first backtest iteration and gained exciting insights into the momentum of individual stocks. The first database was not yet perfect and therefore had some false signals on board.
In my second iteration, I was able to significantly improve the basis and increase the overall observation period, I will be able to share more about this shortly.
For the improved data quality, the S&P Global 1200 was replaced with the MSCI World. I was able to pull the composition of the MSCI World with a script until the end of 2006 and thus continuously rebuild the index for the backtest.
In any case, my backtest iterations also had a direct influence on the portfolio and so, in addition to SK Hynix (at the beginning of the month), Lumentum, Ciena and Kioxia (both in the middle of the month) were added in March, as well as fresh money released from a fixed-term deposit.
The performance was sobering and was fortunately straightened out to some extent on the very last day of March.
A good 8,000 euros with a good 1,000 euros profit at the end of February has now become around 15,700 euros with a loss of 150 euros. That still looks stable and the base has increased significantly. My most important insight from March is definitely that it is better to enter such a highly volatile strategy via a savings plan over a longer period of time. That's why I'll be running a savings plan (three-digit amount per month) from now on. If necessary, I will leave myself the option of putting in 1,000 euros in the event of a setback.
The portfolio for April still consists of $WDC (-13,87%) Western Digital. $LITE (-12,38%) Lumentum and $CIEN (-10,87%) Ciena remain on board and $TER (-11,83%) Teradyne and $BE (-16,03%) Bloom Energy. How exactly this selection came about, shortly!