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Archived articleThis is an archived article from 2015 - please note that any content within the article may be out of date.

Spreadbet- rotation strategy-some help please?

Hi, I am new to the site and am currently experimenting with a rotation strategy using a spreadbet account.

My idea is as follows:
Run my own screen- its largely based on the Winning growth and income screen
Filter the results via a manual rule set
Arrive at a basket of shares to invest in
Open a quarterly spreadbet position on each with a guaranteed stop in case of an "event"!
Hold....

Question is- hold until when?

I take the view getting into positions is often the easy part its knowing when to exit them that is critical.

Two options seem to be:
1) Hold for 3 months (the duration of the spreadbet contract) and then weed out those that no longer qualify and replace with those that do -along similar lines to the guru screen rotation. In other words only run the screen every quarter.
2) Hold until the stock no longer features as a selection( whenever that may be) and replace and add new qualifiers as and when they appear which will likely result in a lot more movement in the positions.

There might be other ways of doing this but I thought I would ask for some help here- anyone any thoughts on this approach?

Any help would be much appreciated

Many thanks

Mark

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3 comments


Avatar for markr

Hi Jon & Patxi

Many thanks for your help- some interesting articles and suggestions-lots to read.... my steep learning curve continues :)

Cheers

Mark

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Avatar for Patxi

I have never spread bet but I have done a fair amount of reading about it. The links below are to 2 articles possibly worth looking at if you haven't seen them before. The first contains some useful advice in the middle of a Paul Scott daily report. The second is an article by Ed Croft with a useful comment by Paul.

http://www.stockopedia.com/content/small-cap-value-report-9-jul-hydg-npt-xpp-biln-opm-75021/

http://www.stockopedia.com/content/what-do-you-need-to-make-spread-betting-easier-94666/


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Avatar for Henry Walpole

Hi Mark

Interesting strategy idea. I have been doing something very similar (on a very small scale at the moment) based on the ideas of Oliver Tomahawk.

See: http://barefootspreadbetting.blogspot.co.uk/2013/10/my-stock-picking-criteria.html

His blog is worth a read although I couldn't live with the sort of drawdowns / leverage he has.

Kind regards
Jon

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