Disclaimer - Read this first!
This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late
I am not a financial adviser. Some of these are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.
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Long term wealth creation - background.
My own investments are held in a portfolio much like the Easy system as well as a slowly growing longer term holding similar to that outlined below.
Our starting position was $200,000. The investment scenario is to have two quite different active investing styles that feed a long term buy and hold style.
- Easy System - A trend following system on the ASX 300 using weekly charts and trailing stops.
- Monthly Momo - A momentum system aims to hold the top ten stocks in the ASX 100 when it is on and nothing when off.
- Long Term - A buy and hold strategy based on index linked funds fed by dividend re-investment of the index funds themselves and the stocks in the above two systems.
The starting position for this blog allocated $95,000 to each of the first two strategies and $10,000 to the long term
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Easy system: Off.
Monthly Momentum system: Off.
Easy Share Trading System.
System Status: Off (as at 27th September 2021)
System details.
These trades are based on Peter Castle's 'Easy share trading system' with a few of my own tweaks. On his web site he kindly provides quite a few details on how his system works and a list of trade entry's each week which I will be using to run these trades here.
Peter also has an e-book with much more detail and explanation of his system and trading in general. I have recently read the book and encourage you to do so if you for a full explanation of the system. It would be unfair of me to exactly replicate that information here so I will continue using the method I had before I read the book.
- Only trade the Top 300 shares on the ASX. Only open positions when the system is on.
- Current Position Size = $4,600
- Select stocks priced between 10 cents and 20 dollars - theoretical price leverage.
- Buy the cheapest stock(s) on Peters 52 week high page assuming he continues listing them, Alternatively, buy the cheapest stock(s) in the ASX 300 making a 1 year high. For example: Friday's close is higher than last Friday's 50 week upper Donchian Channel That's the buy signal. Use around 10% of total capital each week until you have a portfolio 100% in equities. The aim is to fill your book in 10 weeks from when the system turns on and have between 15 and 25 stocks.
- Sell any stock if the EMA 7 falls below the EMA 12
- When the system turns off add an additional stop at 10% below the high of that week and any subsequent higher week until the system turns on again.
- Now re-employ that money into further stock(s) using the same rules as 1 to 4.
- Any purchase should have a minimum $500,000 a day turnover (for my trading size).
- Use XAO_AX Daily SMA 75 as an on off switch. This should smooth the equity curve even though it will probably also reduce returns a little.
Opening Stock Trades.
- None.
- None.
Closing Stock Trades.
- EHL.
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- EHL.
Monthly Momentum System.
System Status: Off (as at 27th September 2021)
Next Re-balancing 3rd October 2021
- Only trades when the ASX100 is rising as defined by a weekly close above the 27 week WMA + 1%. The system turns off when the ASX100 falls below the 27 Week WMA
- Buy the 10 highest momentum ASX 100 stocks in equal weights. Momentum is defined by the 12 Month (Measured using 52 week) ROC.
- Stop Loss Rules.
- System on - Sell any stock not in the top 15 at the beginning of each month. Replace with the best performing stock not currently held.
- System off - Sell Any stock not in the top 6 when the system turns off and Any not in the top six at the beginning of each month. No Buying.
- Note - I am not trading this system (at the moment) but I will be updating each weekend just like the others - remember This is NOT a signal service
System Status: Off (as at 27th September 2021)
Next Re-balancing 3rd October 2021
- Only trades when the ASX100 is rising as defined by a weekly close above the 27 week WMA + 1%. The system turns off when the ASX100 falls below the 27 Week WMA
- Buy the 10 highest momentum ASX 100 stocks in equal weights. Momentum is defined by the 12 Month (Measured using 52 week) ROC.
- Stop Loss Rules.
- System on - Sell any stock not in the top 15 at the beginning of each month. Replace with the best performing stock not currently held.
- System off - Sell Any stock not in the top 6 when the system turns off and Any not in the top six at the beginning of each month. No Buying.
- Note - I am not trading this system (at the moment) but I will be updating each weekend just like the others - remember This is NOT a signal service
Opening Stock Trades.
- None.
- None.
Closing Stock Trades.
- % of the stocks in the portfolio were no longer in the top 6 of the ASX100. These were BSL, JHX, NEC, OZL, REH.
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- % of the stocks in the portfolio were no longer in the top 6 of the ASX100. These were BSL, JHX, NEC, OZL, REH.
Long Term.
System Status: ON (as at 1st Sep 2019)
Next buying window 1st October 2021
- Only holds Index linked funds
- At the start of each quarter sum the dividends received in the easy and Momo system and buy alternatively AFI or ARG.
- Minimum buy is $3,000
- AFI and ARG holdings are set up for 100% dividend re-investment
System Status: ON (as at 1st Sep 2019)
Next buying window 1st October 2021
- Only holds Index linked funds
- At the start of each quarter sum the dividends received in the easy and Momo system and buy alternatively AFI or ARG.
- Minimum buy is $3,000
- AFI and ARG holdings are set up for 100% dividend re-investment
Opening Stock Trades.
- None.
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- None.
Chart(s) / Picture(s) of the Week
Current Trades
None.
Closed Trades Last Week.
INR was going nicely for the Easy system then undertook a rights issue.
INR was going nicely for the Easy system then undertook a rights issue.
Portfolio(s).
Further Information
Disclosure - Personal Interests: AFI, ARG, AEF, APE, ARB, ARF, AVN, CQE, CTD, EHL, JHG, MYS, PGH, PMV, PNI, RWC, SCG, TWE.
All stock charts courtesy of www.incredibleCharts.com
I do not receive any benefit from promoting Nick Radge, Peter Castle, Dave Landry, Incredible Charts or anything else.
For more information on the Easy Share Trading System see http://www.easysharetradingsystems.com.au/objective-and-planing/i-know-what-you-want
