The Kepler portfolio is managed using the Tranche Momentum model. Here are the basic rules for managing the Kepler.
- Select 10 to 15 ETFs that have low correlations with each other.
- Set the Menu assumptions to 12 Offset Portfolios with 1 trading day in offsets.
- Set the maximum number of ETFs for any one offset to two (2) or three (3). For example, if either Commodities (DBC) and/or Gold GLD are recommended, move the maximum number from two up to three ETF options.
- Sell ETFs that are performing or rank below SHY using our ranking software (Kipling Tranche 2.5.1) and do not show up as a tranche recommendation.
- Round the Tranche Recommendations to the nearest 100 shares. Deal in blocks of shares when possible.
- An emphasis is given to the higher ranking ETFs that are most recently recommended, have positive absolute acceleration percentages, positive “Golden Cross” value, and are priced above their 195-Day EMA.
- Hold down portfolio risk by using the Position Sizing worksheets included in the Kipling Tranche 2.5.1 spreadsheet.