Diversified Returns

Description

All sectors above $500M, with no more than one name per industry held at any time. Names are ranked on the volatility-head score. Holds up to 5 names for 6 to 21 days, with a 20% stop-loss on every position.

Strategy

Equal capital is invested in every stock recommendation. Recommendations are published a few hours before the open, and each one is placed as a market order with a 20% stop-loss attached, so buys and sells fill at the opening price. If the price touches the stop during the day, the position is sold there, at 80% of its entry price. No more than one holding per industry is allowed at any time, and positions are held for 6 to 21 days. Reported returns are measured from those opening prices and include every stop-loss exit.