Introduction

My StockRanks £20k Portfolio 2 year on (Part 2) - The Rebalancing is part of a series of posts about adopting the Stockopedia StockRanks system into a real money test portfolio.  With a starting balance of £20, 000 I wanted to test the system over a number of  years.  After an undetermined period of time and if I become more comfortable with my rules set, it is my aim to completely adopt a StockRanks system into my discretionary portfolio.

I have now completed my second year of the journey now ready to rebalance the portfolio. The results of the second year can be found here.

My StockRanks £20k Portfolio 2 years on (Part 1) - Results

At the bottom of the page is links providing a history of the journey so far.

My Rules

Here is a recap of the rules.

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

I will try to pick stocks that have the Rank 90 or above and quoted in GBP.

While I try my best to balance over all sectors I may reserve the right to ignore a sector or adding a more stocks a single sector should I feel this is appropriate.  This may be due to no stocks qualifying in any particular sector and I wish to keep around 10 stocks invested.

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

Stop Loss

During the past two years I have felt uncomfortable with not having a stop loss plan integrated into this portfolio.   A stop loss is integral throughout all my investing strategies and placing a stop loss is a system that works for me and one that I do trust.  I can leave all my portfolios when I work offshore with the comfort that they do not need constantly monitored and stop losses protect me during these period of absences..  I want a reasonable exit…

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