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Friday, September 23, 2016


Coming on a heels of System 12 Portfolio Initiation article (post link), I want to explain a present stage in DART Strategy development. I published its principals and methods right here on this blog, over a course of more than a year, and finally DART reached an important milestone (I think).

Up until now, Dart v2 portfolio was running in simulation. I started this virtual account a month ago  with intention to illustrate how a system has to be started and managed (links on a bottom of this post). But that was only one reason. More pressing was my own need to test daily system management.  I needed to make Dart a part of my daily routine, to make sure I don't forget to check it, and also to see if I can go away for day or two without this thing blowing up. I had no time to waste, because as wrote here (post link): " ...it comes at time when my Main Account is 30%ish in cash, so I will have needed funds to allocate if/when good opportunity comes along...  I would do it with real money, had the market not be so high and time of the year not so treacherous".

Well, the market came down a bit and time is progressing, with September almost behind us. Meanwhile, Dart v2 went thru severe draw-down to the tune of almost 10%. I would never forgive myself, if I wouldn't use this drop to put it into production. Real world results will be the final arbiter for DART Strategy, and to be faithfully reported in this space.

Practically, there are only two ways to Start a System - you buy them all at once, or you don't. :)
Lucky for me, I don't have to bite this bullet, as system already started, suffered some losses, bought some new stocks and now ready to be synchronized. This is a unique characteristic of Dart method - it is 'Always ON'. The portfolio has to be fully invested into 6 stocks, selected from Best List - a scan of available database of fundamental information, looking for good business, priced at good value. Best List is constantly changing, offering ever expanding selection of sensibly priced stocks of best companies in USA, for immediate investment. Stocks in a portfolio (winners and losers) are being sold in efficient manner, providing endless rotation which can be used to seamlessly enter into DART Strategy. Just like a surfer who needs to get in sync with waves in an ocean to catch a thrill ride, a real world trading account can be synchronized with Dart Portfolio and (hopefully) surge to profits.

Use this logic for Sync:
-if  stock in simulated portfolio qualifies under Best List rules - then buy it as you would buy any new position
-if stock in simulated portfolio has a sell stop, or a likely candidate to be sold - then don't buy it
-wait for by-weekly rotation to enter remaining positions

This is Dart v2 Simulated Portfolio now:

SCS was bought in simulated account on Sept 9, dropped about 15%, but can not be sold due to minimum 1 month holding period. Since it's not in Best List now - don't buy it.
CMI has a stop-loss order in - don't buy it.
IILG was a worst performer, recovered somewhat and needs to be watched for a possible sell - so don't buy that either.
These commentary are published on my private Twitter feed (just send me a request - its FREE for now): https://twitter.com/SWID_iBergamot

I entered ADP, MSM, GNTX in Standard Position Size between 15th and 20th of September.
While all future trades of Dart v2 Strategy will be done with real money, I need to remind all two of my kind readers that this is still an experiment and I have no idea how this system will perform in crisis or bear market.

.to follow articles in this series - select 'DART' label on a right sidebar.
Read these key posts:
Original DART Article
Loaded Gun - results and observations
Dart v2. System Start
Dart v2. Portfolio Check

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