Thanks to everyone who gave me their feedback on the first cut of the growth portfolio – 10 share portfolio.
One common point of interest was how a growth portfolio stacked up over the GFC.
I went back to back-tester and ran the tests from 2007 through to present. After many tests, I am pleased to present the revised growth portfolio that holds up through the GFC:
The aim of this portfolio is to get the best returns but not at all costs. The returns are stacked up relative to:
- Trades required
- Number of sectors invested in
- Number of industries invested in
- % of total stock volume purchased in a given day
The portfolio above ensures:
- Drawdown is kept to the 20% mark (20.27%)
- Trades are averaging 2 trades a month on average
- No more than 2 sectors picked up on average (out of 10 stocks)
- No more than 2 industries picked up on average (out of 10 stocks)
- No more than 5% of a stocks average volume picked up or sold on a given day
This portfolio seeks to maximise growth returns while doing so in a careful manner. The stop loss set is a 30% Gain, 15% Loss. As we have seen over the years in Australia – the wider ranging stop losses typically perform better than the tight stop losses. It helps reduce the number of trades – and improves the returns on average.
The revised portfolio makes use of a further refined UniSearch parameter set – where I have ensured no penny stocks are purchased, sufficient liquidity and stable price pattern (per our CI screening)
The settings for the portfolio is as follows:
To see exactly how this portfolio is setup and further commentary behind this portfolio, Please Click Here to see the video.
Please note – the UniSearch is not currently loaded into VectorVest – and the portfolio is not currently in the system. However, per the video, you can quickly create the portfolio and track it until it is released.