Introduction

My StockRanks £20k Portfolio3 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 the portfolio came into inception during October 2014.

As a recap the results to 29 September 2017 was as follows:

The value of the portfolio increase by 19% past 12 months 

Compound Annual Growth Rate (CAGR) 20.22

More information about these results can be found here:-

My Stockopedia £20k StockRanks portfolio 3 years on (part 1)

I have now completed my third year of the journey and now rebalanced the portfolio. 

Changes to my rules

Stockopedia has wrote several articles in the past about StockRank styles which make up the different ways that StockRanks are exposed to the different drivers of Quality, Value and Momentum.  I had always aimed for SuperStocks in the hope that this would be give the best possible chance of success during different periods of market cycles.  Now with the introduction of RiskRatings as a classification of market volatility I wanted to add the risk ratings into the rules.  It has been my strategy not keep the rules to a minimum and so I felt that I would have to replace rules rather than add more.

Adding the RiskRatings but excluding Highly Speculative then most of the highest volatile stocks should dissapear therefore I felt Spread (bps) could be replaced.  I also felt that with expanding to a possible 20 stocks that I could introduce some of the smallest caps on the markets. So the Market Cap > 20 is now also removed.    I would be surprised to find any stocks with a market cap of less than £20m anyway however you never know.  If they qualify for the screener they would certainly be considered now.

  1. The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66) 
  2. StockRank Syle - SuperStock
  3. Risk Ratings excludes Highly Speculative
  4. Dividend Yield 12 month rolling > 0
  5. Market Cap > £20m
  6. Spread (bps) < 500
  7. Sector includes - One screener Two stocks for each sector (10 sectors in total) as long as they qualify.
  8. Rebalance every 12 months
  9. A wide non destructive stop loss will be placed.

Exit Plan

A stock will leave the portfolio when it goes below StockRank 90 and…

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