Silver Creek Falls Trail
Earlier this morning I posted a blog using Asset Allocation principles with the Pauling. Gauss uses an entirely different investing model. This investing model is unique to ITA Wealth Management and it is called the Sector BPI™ model. At least I’ve not found anyone else using this approach to investing.
The idea is to purchase Vanguard sector ETFs when the Bullish Percent Indicator (BPI) is 30% or lower and to place a 3% Trailing Stop Loss Order (TSLO) when the BPI is 70% or higher. BPI data is published on the weekend when changes are spotted. Last week Telecommunication recommended a Buy so shares of VGT were purchased for the Gauss. I did the same for other Sector BPI portfolios.
Gauss Security Holdings
Below is the Sector BPI investment quiver for the Gauss and the current holdings. VGT is still under populated as 10.6% is the recommendation while the portfolio holds only 6.4%. Limit orders* are in place to bring VGT up to the recommended percentage.
For more information as to how to manage a Sector BPI portfolio, do a blog search for Sector BPI or keep following portfolios such as the Carson.
Gauss Manual Risk Adjustments
Even though the Manual Risk Adjustments worksheet recommends a Sell for VGT, the Sector BPI model rules override this recommendation. We need VGT to hold 10.6% of the total portfolio and that is why I have three limit orders for 5 shares each in place to pick up 15 more shares of VGT. Otherwise the Gauss remains dormant.
Gauss Performance Data
Since 12/31/2021 the Gauss has bested the SPY benchmark by nearly one percentage point and is far ahead of the other five possible benchmarks.
Gauss Risk Ratios
As for the five risk ratios, most have remained quite stable over the past year. The slope of the Jensen Performance Index is flat and I would like to see that trend go positive over the next few months.
Overall, the Gauss is performing quite well based on both IRR and risk adjusted performance.
Gauss Sector Portfolio Report
The following data table is posted to show how the Sector BPI model is performing. Launched in late November of 2022, the Internal Rate of Return for the Period is 55.4% while the S&P 500 investable ETF SPY returned 24.6%. Thus far the Sector BPI model is working very well.
If readers have questions regarding the Sector BPI model, post them in the Comment section provided below.
Tweaking Sector BPI Plus Model: 20 May 2023
Tweaking Sector BPI Plus Investing Model: Part II
- One limit order to pick up 5 shares of VGT was struck as I wrote this blog.
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