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Friday, September 2, 2016

DART v2. Portfolio check

DART v2 was started only a week ago (post link), and immediately was hit with 12% loss on BRCD. Stuff like this happens. There is nothing to do about it - that is why they call it stop-loss. The only objective is to stop the loss, find new stock for portfolio and move on. I found exactly this to be a superior quality of multi-position dynamic portfolio vs other so-called systematic approaches.

The System (in my understanding) has a certain set of requirements, parameters and guidelines, which when followed as designed, produces more money than what initially was put in. It doesn't mean that every single trade is a winner (mathematical impossibility), or even that money grow slow-n-steady with no set backs (nice when it happens, but it doesn't last). Still, Pain of a Loss is more profound than Joy of Gain, if speculation in markets viewed as some kind of gaming activity. BUT, if investing in stocks is approached as an operation or a side-gig for profit, then this loss is nothing but a cost of doing business. Just like store owner doesn't keep all the money made, having to spend some on supplies, utilities and labor. He will gripe about electric bill, but pay it nevertheless. Same here.

BRCD was sold on 8/31 at original stop-loss. Proceeds are to be replenished back to Standard Position Size and invested into SCS. This is what DART v2 has now, in equal size:
My only concern right now is new figures for short interest on MSM. I would like to stay away from stocks with more than 10% of float short, but it's not enough reason by itself to sell a position. As always, I'll let market sort this out, besides DART is allowed no more than 1 trade per week and this ammo already spent...

This is DARTv2 (top 6 slots are open positions, the rest are possible replacements):

Portfolio can be viewed in Investopedia for record and comparison:

November 10, 2016. New simulator for fully synchronized DART v2:


Steelcase SCS, a new position in the portfolio, is an office furniture and design company. Although classified as a small-cap, this 100 years old thing is actually not-so-small 1.75Bil with impressive 3 Billion of sales, 11000 employees and 3% dividend yield.  Stock fell some 40% at the end of last year and now seems to be making a base between 13 and 16 dollars.

I have never heard of them anywhere, but apparently Steelcase is THE maker of my dream - Electric Height-Adjustable Desk - a $2000 monstrosity I must own some day.
Now, this is a stock I can get behind :-)   (my puns are always intended... Always!)

.to follow articles in this series - select 'DART' label on a right sidebar.
or read these key posts:
Original DART Article
Loaded Gun - results and observations

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