Introduction

During October 2014, I created a new portfolio based on the StockRanks system and publicy announced on the Stockopedia forums during a 6 month review.  You can read about it on the link below.  At the time the portfolio had gained 20%.

My StockRanks Farming Approach - a 20k Real Money Test Portfolio

((edit: updated: - My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing is now published))

But lets recap on my rules based strategy here:

My Farming Rules

  1. The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66 
  2. Dividend Yield 12 month rolling > 0
  3. Market Cap > £20m [*1]
  4. Spread (bps) < 500
  5. Sector includes - One screener for each sector (10 sectors in total)
  6. Rebalance every 12 months *new rule

Exit Plan

A stock will leave the portfolio when it goes below StockRank 90 and a more suitable qualifying stock can take its place.  Once the Stock is part of the portfolio the Quality, Value or Momentum figures may go below 66.  That is ok as long as the Stock remains above 90 at the time of rebalancing.

Although I wanted to provide as little human intervention as possible under this system I was able to choose stocks from each sector that I thought would perform better than others.   Unlike Ed Croft's NAPS I am not required to pick the top StockRank of each sector.  I  also reserved my right to intervene when an extra-ordinary or surprise announcement that would adversely impact any stock.

This happened with Plus500 (LON:PLUS) and I decided to sell the stock outside the rebalancing date.  You can read my post about the Plus500 (LON:PLUS) moment in the link below

My Stockopedia 20k Farmed Portfolio - The PLUS500 effect and why I am happy

Portfolio as of 22 October 2015 - 1 year on

Since inception the value of the portfolio has increased by 38%   (based on valuation chart below)

Taken into consideration that we have gone through one of the worst quarters that I have experienced then I think this is a wonderful outcome that has indeed exceeded my expectations.

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Valuation and Cash Balances

This includes adding £2000 in cash and receiving £260…

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