Stocks: 1st May 2023

 

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 will not be including Fossil Fuel companies.  Also I avoid stocks that are subject to takeover actions, are undertaking takeover actions or undertaking other corporate actions (share issues and the like).

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.

Wherever possible I will be avoiding Fossil Fuel related companies. 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: On.

Monthly Momentum system: On.

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Easy Share Trading System.

System Status: On (as at 9th April 2023)

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.

1. Only trade the Top 300 shares on the ASX. Only open positions when the system is on.
2. Current Position Size = $7,452
3. Select stocks priced between 10 cents and 25 dollars - theoretical price leverage.
4. 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. The aim is to have approximately 10 stocks. 
5. Sell any stock if the EMA 7 falls below the EMA 12
6. When the system turns off add an additional stop at 10% below the high of the last 3 weeks and any subsequent higher week until the system turns on again.
7. If the system is on re-employ that money into further stock(s) using the same rules as 1 to 4.
8. Any purchase should have a minimum $500,000 a day turnover (for my trading size).
9. Use XAO_AX Weekly EMA 12 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.

Closing Stock Trades.

• None.

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Monthly Momentum System.

System Status: On (as at 17th April 2023)

Next Re-balancing 15th May 2023

1. Only trades when the ASX200 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
2. Buy the 10 highest momentum ASX 200 stocks in equal weights. Momentum is defined by the 12 Month (Measured using 52 week) ROC.
3. Re-Balancing date will be around the 15th of each month.
4. Stop Loss Rules.
   • System on - Sell any stock not in the top 15 at the middle 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 ten at the middle of each month. No Buying.
5. Note - This simulation ran on the ASX100 until 13th March 2023 then changed to the ASX200.  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.

Closing Stock Trades.

• None.

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Long Term.

System Status: ON (as at 1st Sep 2019) This system is always on. 

Next buying window 1st July 2023, next buy is ARG

1. Only holds Index linked funds
2. At the start of each quarter sum the dividends received in the easy and Momo system and buy alternatively AFI or ARG.
3. Minimum buy is $1,500
4. AFI and ARG holdings are set up for 100% dividend re-investment

Opening Stock Trades.

• None.

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Chart(s) / Picture(s) of the Week

Current Trades

None.

Closed Trades Last Week.

None.

Portfolio(s).

Further Information

Disclosure - Personal Interests: AFI, ARG, BGL, CHN, DBI, DTL, NXT, OML, QAN, SFR, SGP.

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