Allocation Model vs SPX500
Comparing the Allocation Model to the SPX500
General factors are calculated to balance Momentum, Volatility, and Overbought/Oversold conditions. And to take preemptive action in large market moves.
Daily Updates
Daily Updates are made at market open. Typically 1 - 3 stocks/sectors are switched out daily. While allocations changes are made depending on changes in the allocation model.
High Growth Backtesting 2000 - 2024
High Growth Linear
High Growth Logarithmic
High Growth Logarithmic
2000 - 2024 turning $10,000 into over $1,000,000,000 (ten thousand to 1 billion)
High Growth Logarithmic
High Growth Logarithmic
High Growth Logarithmic
Logarithmic Graph comparing high-growth stock performance to the SPX500
Stock Count
High Growth Logarithmic
Stock Count
Major factors screen for EPS (Earnings per share)
Using 5 stocks in descending allocation order. For example (10% allocation)
Stock 1: 3%
Stock 2: 2.5%
Stock 3: 2%
Stock 4: 1.5%
Stock 5: 1%
Short Sell Backtesting 2000 - 2024
Short Sell Linear
Short Sell Logarithmic
Short Sell Logarithmic
2000 - 2024 turning $10,000 into over $1,500,000 (ten thousand to over 1.5 million)
Short Sell Logarithmic
Short Sell Logarithmic
Short Sell Logarithmic
Logarithmic Graph comparing Short Selling stock performance to the SPX500
Short-Selling Info
Short Sell Logarithmic
Short-Selling Info
Major factors screen for Poor EPS (Earnings per share) and Overvaluation.
Stock Allocation is similar to the buy category. Short selling is the most difficult to get right. However, this screen shows consistent positive results during bear markets and doesn't lose too much money during market corrections. It outperforms or remains flat during bull markets, which indicates a solid short-sell screen. However, it remains the most risky portion of the portfolio and is reserved for extreme bear market conditions.
Total Portfolio Weekly Backest 2008 - March 2024
Percentage Growth
Percentage Growth
Percentage Growth
Total growth is nearly 1,000% or 41% average annually. Note that this is on an outdated less efficient model than the current daily updated model
Dollar Compound
Percentage Growth
Percentage Growth
Due to compounding growth $10,000 turns into over $100,000,000 (ten thousand to over 100 million)
Volitility
Percentage Growth
Volitility
Max downside volatility on a given week does not exceed -7%
March 2023 - May 2024 Sector allocation backtest
Percentage Growth
Percentage Growth
Percentage Growth
Total growth is about 42% buying and short-selling Sectors.
Volitility
Percentage Growth
Percentage Growth
Max downside volatility on a given week does not exceed -2%
Sector Allocation Model
Buying top 5 sectors, shorting bottom 5
- Here is a detailed image of the sector allocation system dating 7/11/2024 - 09/27/2024
- Allocations are similar to the buy and short-sell stock portions of the portfolio eg:
- out of 10% (3%, 2.5%, 2%, 1.5%, 1%)