Three months have passed so a good time for an update. All of the following portfolios are Virtual Test Portfolios and do not include dividends. Today FTSE 250 18th April 16889.
In January 2015 I created a portfolio based upon the following rules. SR 90+ Q50+ V 60+ QVGM 80+ Spread < 250 Piotroski >5 and Price Change 1 & 3 months >1.The screen created a portfolio of 17 shares.
I adopted one simple rule for selling, Two reds (negative one and three month price change). By November I was all closed out delivering an 18% profit. If I still held the portfolio my profit would now be halved to 9%, even though the bench mark FTSE 250 is only 4% off its December high? Furthermore eleven of the fifteen (two have been taken over) are still showing three month reds, five of which have a StockRank of 97+.
The portfolio was active throughout a rising market and completely sold prior to the tipping point. So as not to confuse the test, no further shares were bought after commencement. No shares were bought back if the reds turned back to green.
On the 19th November a Short portfolio was created to test StockRanks the FTSE 250 was sitting at 17144, hardly changed from today's price. The Screen Rule StockRank 95+ and Q 90+ Aim Mkt Cap 45+. SELL
The Screen created 14 shares which currently stand at a tiny profit and would have been negative if it hadn’t been for the 65% fall in Sprue Aegis yesterday, although it simply balanced out Somero and Penna which had gained 35% each. As things stand eight shares fell and six rose. The test was to discover if a high SR coincided with an overbought situation. I would suggest that as we have had a fall and a rise over the period the test proved nothing other than a high Stockrank on its own is not a buy signal.
On the 4th January another long portfolio was created with slightly different rules and more emphasis on stock fundamentals which I won’t bore you with. The same selling criteria, two reds, and a bear market in play, which some of you may remember. The screen created only 10 shares.
Between the 19th of January and the 24th Feb seven were sold for a consolidated loss of 5.7% the other…
