Huygens Portfolio: An Advanced Look

England

Huygens is not up for its schedule review this morning.  However, there are enough new subscribers to merit a look as to how I manage a basic momentum oriented portfolio.  The following analysis builds on the blog, Four Ways To Protect Capital.  I’ll be using the BHS model with the Target Filter turned on.

Huygens Investment Quiver

The following screenshot shows the investment quiver for the Huygens.  ETFs SCHH down through HAUZ are securities used by the computer managed portfolio at Schwab.  I changed the Strategic or Max AA percentages from 100% to those percentages you see in the third column from the left.  In most situations, we will not be investing 20% in a single security.

If the Max Asset Allocation is set to 20% and we overshoot that value, the software will then seek to “overload” the highest ranking security.  If you have questions as to how this all works, post your question in the Comments section.

Huygens BHS Recommendations

With the investment model set to BHS and the Target Filter turned on, only four securities are recommended for purchase.  Another three (3) are a Hold.

Huygens Manual Risk Adjustments

The Maximum Portfolio Risk is adjusted to read 5.25% or between the 5% and 6% goal.  Note how I match the Recommended Shares from Auto (9th column from right) with the Shares to HOLD (8th column from the right-hand edge).  The number of shares to buy or sell show up in the 5th column from the right.

I don’t have any TSLOs set for the Huygens.