Hi,
The stockopedia Zulu Principle screen shows that the funds are updated on a quartly basis. I was wondering if we could examine how the screen would perform when updating the stocks every 6 months?
Has anyone had experience with the Zulu Principle? It is something I'm really studying at the moment and the returns seem consistent over the long period.
Also what would be the best % stop loss on the Zulu Principle, maybe 20% trailing stop loss?
Thanks
gurv87, you are a very recent recruit to Stocko so perhaps you should take your time in studying the Jim Slater ZULU Principle Screen in the Gurus section. It's something I haven't practised, although looking at it there are 4 shares, 2 of which seen by Stocko as being Adventurous and 2 Speculative. According to the Stocko Buy / Sell Rules the percentage Stop Loss averages out at 22.2%. The companies are likely to change over the months so checking every week or two will be educational. A practice folio would help you there, adding fresh companies entering as they appear in the ZULU Screen. Hope this helps.
Have you read Beyond The Zulu Principal by Jim Slater? If not it will answer many of your questions.
Regarding stop losses: Ask yourself " would I still buy the share now that its value has dropped?" If the answer is yes, then hold or buy more (average down). If the answer is no, then use the stop loss. This is discussed in the book.
The guru screens are a bit misleading, because the stocks they show on the screen, are not necessarily the ones that are actually included. As you say rebalanced quarterly, so if a load of stocks qualify tomorrow, they would not be included, not until the next rebalance which is 1st January? Stop loss, who knows there ares so many different stocks that could be selected. On the old site it did show when stocks qualified but that feature is not available on the new site. I don't think 6 month rebalancing would improve the results, if anything would make them worse.
It has performed well but did have a large fall last year.
As Silver Moon, suggests, setting up your own screen or folio would be a good idea. You can copy the screen over and amend the rules if you wish, or have several screens with different rules.
Hi Revs8, I haven''t read Beyong The Zulu Principle, I've just finished his first book and will look to start reading the second one. Thank you.
Hi Silver Moon, yes I'm new sto Stocko. Thank you for the advise on the practice folio, I will try this. Thank you
Thank you for your reply, thats been really helpful and I will take it on board. I will set up my own folio and test it from there
I'm reading "Beyond the Zulu Principle" and noticed that in constructing a "cash flow sieve" it is recommended to ensure that FCF per share is greater than EPS for the last reported year. I can't see that this is built into the Guru screener on Stockopaedia. It doesn't seem to be possible to add this as a screening rule. Is that why it is not part of the Zulu screener? It is obviously easy to apply this manually after running the screener - I was just curious?
