Random Walk Strategy

Random Walk Strategy

This is a variation of the “Price Index 6 months strategy” and it’s LONG only. The selected stock has to be a good performer in terms of Price Index value. While in the former strategy the exit was made ALWAYS after a hold period of one year, in this strategy we sell in one of the following cases:

1. Gain = 40% (or whatever value chosen)
2. Loss = 20% (or half the target gain)
3. after 6 months holding time without exiting as per points 1 or 2 (you can also use 3 months max hold time)

I’ve been using this strategy real-money with portfolios of stocks from different countries for about 5 years and a half now with a annualized return of the portfolio of about 26% (I uses a portfolio with 30 to 50 stocks).
If you select the top stocks in terms of the relative strength in their sector the annualised return is approximately 35%.

Blue skies!

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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

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