One Simple Portfolio Fix & Equity Peaks

Out of the gate in the first two days of trading, the Top 50 Select is at equity peaks. We were hoping for a slow start and drawdown for the drawdown entry alert but it's always good confirmation to see strong signals. We released some new portfolios to start the month to take advantage of the new market mode. The 50K Portfolio and Stock Index Portfolio 18 are also up to start the month.

The one simple thing that has "fixed" so many of the portfolios, is to remove the trend strategies. As I go through my drop-down list of historical portfolios that we continue to track hypothetically, nearly all of the portfolios continue to perform well and are within the normal drawdown cycle if I remove the Trend strategies. I show how at the 2:30 mark in the video to remove the Trend Strategies in the Excel Portfolio Calculator.

Since the pandemic we continued to add more and more trend and momentum strategies to the stock indexes and especially the Nasdaq, to take advantage of the trend, momentum, and wide ranges. That is what we do as traders, add to winners. Now that the market has certainly shifted back to traditional price action, as traders, we also adjust.