Below are two sets of tranche recommendations where only the ROC weights are different. The third screenshot shows the position size or how one might hold down portfolio risk.
Tranche Recommendations #1: This is a sample, not one of the real portfolios. In this slide I set ROC1 = 30% and ROC2 = 50%. All other settings are similar to what I’ve been using with the real portfolios. The most recent momentum data recommends placing 50% in VNQ and 50% in PCY. Those two ETFs were highly recommended all last week.
Take note of the high absolute acceleration percentages for both DBC and GLD.
Tranche Recommendations #2: In this screenshot I set ROC1 = 50% and ROC2 = 30%. There is some shifting in the number of recommended shares, but the ETFs themselves remain the same.
All but one of the ETFs show positive “Golden Cross” (X/O) action.
Position Size: This slide was taken when ROC1 = 50% and ROC2 = 30%. While the Suggested Portfolio Risk is higher than the Current Portfolio Risk, 3.9% still seems a tad high, particularly when much of the portfolio is invested in PCY, BIV, and TLT. I’m still becoming acquainted with this worksheet so I may be overly sensitive to risk percentages that approach 4% until the portfolio is next reviewed.