Dump it Here

[Skate]

Challenges are an anchor
Many young traders face a range of similar challenges. With the increases in the cost of living, while wages are still flat-lining making it more difficult to save. Having said that, trading a small portfolio is still the best way for those just starting out as it allows money to grow & compound over time.

Your future hasn't been written yet
Taking steps now will make it possible to reach your financial goals much sooner rather than later. Trading allows the freedom to supplement your income or save to buy a home. Trading offers endless possibilities.

Skate.

 

[Skate]

How can you start trading with little money?
Now we have come full circle, back to where we started, asking the same question. Simply, there is only one answer & that is, you need to start with "savings" to bankroll this new trading endeavour. It's important to understand that trading funds need to sit outside of your general living expenses. This money (savings) can’t be used for any other purpose other than trading or it will defeat the purpose.

Without an education
It’s highly likely you will lose your money very quickly, as many new traders have without firstly educating themselves about trading. In the early stages, it is not the size of your bankroll or the returns you'll achieve what’s important. However, what is important is that you develop the correct trading habits from the get-go.

Skate.

 

[Skate]

The first investment you should make is in yourself
A trading education removes the fear & risk associated with trading to some degree. Without an education, trading can be a very expensive experience.

Once you have gained an education
You will be confident in having the knowledge of how to achieve very rewarding results. Brokerage costs affect your returns as each time you buy & sell shares there is a hefty commission fee. So, each bet needs to be larger enough to offset this fee.

Skate.

 

[Skate]

Is $20k enough to start trading?
Well, yes & no. Let’s start with “Yes” first. $20,000 is a lot of money for some & an unreachable savings amount for others.

$20k at least does two things
(1) It allows you to dip your toe in as a trader
(2) it gives you an amount to save for, prior to trading

Also, a $20k bankroll with $5k positions
Allows you to have bet sizes large enough to negate the hefty commission fee that’s charged both ways. (Buy & Sell)

Now for the "No" case
If you spread $20k too thinly, meaning having 10 or 20 positions in the portfolio, the commission "wouldn't just be an anchor around your neck" but rather a "bullet to the head" killing the strategy, no matter how good it appears.

Skate.

 

[Skate]

Once you have $20k
Do you hold four or five positions? Well, my choice would be to go for "four" (4 X $5k) positions as the commission drag will be lighter.

Capital protection
This includes picking the right positions & then knowing when to buy & when to sell helps in the development of a trading plan, a plan you can stick with. The secret to profitable trading comes from having a solid repeatable process.

So, there you have it
On how you could start trading with very little money. Don’t get me wrong, $20k is not chicken feed but it’s the least amount I consider that will give you a fighting chance of survival in this game of probabilities.

In Summary
I'm just saying, "if you can pull this off" you will be on your way to financial freedom. Financial freedom should be the aim of every trader. Living life on your terms is what it's all about. The only person who can make sure you’re able to live the life you "desire" is you.

Skate.

 

[Rabbithop]

Challenges are an anchor
Many young traders face a range of similar challenges. With the increases in the cost of living, while wages are still flat-lining making it more difficult to save. Having said that, trading a small portfolio is still the best way for those just starting out as it allows money to grow & compound over time.

Your future hasn't been written yet
Taking steps now will make it possible to reach your financial goals much sooner rather than later. Trading allows the freedom to supplement your income or save to buy a home. Trading offers endless possibilities.

Skate.

I like it...

Your future hasn't been written yet
Taking steps now will make it possible to reach your financial goals much sooner rather than later. Trading allows the freedom to supplement your income or save to buy a home. Trading offers endless possibilities.

I have 2 grandkids 5yrs n 3yrs, I choose to buy 1k worth of share for their portfolio on their birthdays. Their bday fell on the same month. To prevent complication, I buy both the same numbers, maxi 1k on the same stock.
Currently the 5 yr old portfolio comes just par with capital spend. The 3yr old portfolio comes well above mid 3k.
It is a small portfolio for them but when they are 18 or 21yr old, hopefully, they can put it to good use.

 

[Rabbithop]

How can you start trading with little money?
Now we have come full circle, back to where we started, asking the same question. Simply, there is only one answer & that is, you need to start with "savings" to bankroll this new trading endeavour. It's important to understand that trading funds need to sit outside of your general living expenses. This money (savings) can’t be used for any other purpose other than trading or it will defeat the purpose.

Without an education
It’s highly likely you will lose your money very quickly, as many new traders have without firstly educating themselves about trading. In the early stages, it is not the size of your bankroll or the returns you'll achieve what’s important. However, what is important is that you develop the correct trading habits from the get-go.

Skate.

The first paragraph of the purpose or aim is extremely imp to bear in mind. Sadly, our Australia Superannuation purpose has been compromised. Reitrement funds target may not be achieved.

The second paragraph...Without an education....when the hard earned saving evaporated fast, one will wake up.
Some thing you can learn while you trade. The sky is blue when you made a profit and cry bucket of tears when the sky turns black.
Good to have Time n be able to learn n practice on paper before committing real money into the game.

 

[Skate]

Without an education....when the hard earned saving evaporated fast, one will wake up.

@Rabbithop, I have three sons, two are traders & both are time-poor as their young families come first. What's pleasing is that both are teaching their children the value of money early.

Birthday presents
Birthday shares instead of money is a novel idea that will not only be appreciated over the long term but may also be the catalyst to set them up for life.

The biggest challenges we face in life are all money-related
Most marriage breakup normally stems from money, a fester for most arguments. I can also tell you, it's never about having too much money. It's a real shame the education system neglects the importance of money management as part of its curriculum.

Skate.

 

[Skate]

Thinking
Thinking & curiosity has been pulled out from under us & as a dad & grandfather, it's our responsibility to reclaim this area for our children & grandchildren. Critical thinking is important but not as important as discovering new ways of thinking about the world as we see it. When you practice critical thinking it demonstrates why personal responsibility is so important.

The law of least effort
Many receive advice "only the wise profit from it". People, in general, will think as little as possible because most of our lives, we spend our time listening to someone else "feed us information". Taking responsibility for all of our decisions sets us on a journey of self-discovery. Today, we are constantly waiting for someone else to tell us what to do or checking to see what others are doing so we can do the same making us conformists at best.

Skate.

 

[Skate]

@Rabbithop, I've made a series of posts today when I could have made one post with bullet points instead. But I believe the filler between the points is just as important.

Freedom at Stake
Trading isn’t about getting rich, I've posted this many times, it's more about financial independence supporting yourself without an income & being able to choose to live your life on your terms.

Who decides
The only person who can make sure you’re able to do it on your terms is you...

The measure
Living life on your terms is what life is all about.

Skate.

 

[Rabbithop]

@Rabbithop, I've made a series of posts today when I could have made one post with bullet points instead. But I believe the filler between the points is just as important.

Freedom at Stake
Trading isn’t about getting rich, I've posted this many times, it's more about financial independence supporting yourself without an income & being able to choose to live your life on your terms.

Who decides
The only person who can make sure you’re able to do it on your terms is you...

The measure
Living life on your terms is what life is all about.

Skate.

The difference of opinions or views will depend on your stage in life.

Freedom at Stake...if a trader is in the 20 to 30 age grp, Trading is about getting rich to own a debt free house and provide a good family life. 30 to 50 age grp, Trading is about getting rich to plan for early Retirement, away from the Rat race.

50 to 70 age grp, Trading isn't about getting rich, it's about sanity n self elation in beating the market. The satisfaction of making a profit n interaction with others with same interest.

70s and above age grp, happy to have a healthy life, Trading to get that little extra money able to treat friends for cuppa/ drinks, lunch or dinner to cheer each other up.
Reminiscencing of the good old days.

Who Decides
Fully agree...YOU....

The Measure
Here Today, Gone Tomorrow.
Life is about Planning.
Be Happy.
Enjoy God's Creation each day.
Spread Happiness.

 

[ducati916]

Once you have $20k
Do you hold four or five positions? Well, my choice would be to go for "four" (4 X $5k) positions as the commission drag will be lighter.

Capital protection
This includes picking the right positions & then knowing when to buy & when to sell helps in the development of a trading plan, a plan you can stick with. The secret to profitable trading comes from having a solid repeatable process.

So, there you have it
On how you could start trading with very little money. Don’t get me wrong, $20k is not chicken feed but it’s the least amount I consider that will give you a fighting chance of survival in this game of probabilities.

In Summary
I'm just saying, "if you can pull this off" you will be on your way to financial freedom. Financial freedom should be the aim of every trader. Living life on your terms is what it's all about. The only person who can make sure you’re able to live the life you "desire" is you.

Skate.

jog on
duc

 

[Skate]

I've been thinking
@ducati916 trading such a low amount of $20k (4 X $5k bets) might make an interesting series of ongoing weekly posts. I hate it when I'm trading someone else's money as the pressure is enormous. I'm sure there will be distractors who absolutely know that "Skate's 20Kay Strategy" will crash & burn. But, I'll be hoping it doesn't.

But on the flip side
No matter how the strategy performs in "real-time" others who have a low starting balance might be interested when someone else's money is at risk. When the "Percentage Index Filter" gets to 50%, signals will be generated. At the end of trade today it's sitting at 47%. Sitting in cash & waiting for buy signals can test the best of traders.



There is always an upside
"Skate's 20Kay Strategy" started its trading journey on the 1st of December 2022 & I'm pleased to report, the strategy has not lost one cent. (yet)

Skate's 20Kay strategy
There might be a few signals this week, here's hoping, as sitting on your hands & doing nothing is very hard to do.



Skate.

 

[Skate]

Let's not try to make trading complicated
I've said a few times over the years that the odds are stacked against you when you want to trade a small account profitably, but in saying this, it's not impossible. When it comes to trading you need to be clinical in everything you do. Trading small accounts require strict risk control & money management. At times, you'll even struggle to cover the transactional cost of buying & selling but that's trading.

There is no buffer to fall back on
Trading a small four-position portfolio has simply no buffer against a losing streak, unexpected losses, or trading mistakes. But in saying this, the process is still exciting. Even trading small amounts allows you the opportunity to build a larger amount over the longer term. Trading small accounts may be more difficult to trade successfully, but if they are traded correctly, there is no reason why small trading accounts cannot be profitable.

There's never a good time to start trading
As far as I'm concerned when you are trading you'll need to play the waiting game no matter the dollar size or the position size of your portfolio. This means, that you need to time your purchases precisely when the odds of success appear to be in your favour.

Skate.

 

[Willzy]

Hi everyone, I've been playing with amibroker rotational strategies this last week. Playing with the concept of dual momentum.

I came across this youtube tutorial, where the presenter uses python to run a backtest on a rotational strategy. Python is not ideal for this type of analysis but I am struggling to work out how to replicate the strategy is Amibroker.

Strategy:

Watchlist = NASDAQ 100

First Rank all tickers by their 200 day ROC and take the top 50 stocks from this ranked list

Rank these top 50 stocks by their 100 day ROC and take the top 25 from this 2nd ranked list

From this final list of 25 stocks, Rank them by their 50 day ROC and take the top 10 stocks

Buy all 10 tickers with equal weighting, ie 10% each.

Rotate Monthly.

I found a tutorial by Matt Radtke, also worth a look for those interested:


I've transcribed the amibroker AFL in his video. I think the secret will lie in a nested for loop where we generate separate static variables for each ROC... ie ROC200, ROC100 and ROC50.

ROC100 = iif( rankROC200 > 50, -1e9, ROC(C,100) );

Below is Radtke's code:

#include_once "Formulas\Norgate Data\Norgate Data Functions.afl"
doTrace = False;
tkIndex = "$SPX";

// Perform opeations that only need to be done once at the start of the analysis
if (Status("stocknum") == 0 AND Status("actionex") != actionPortfolio AND Status("actionex") != actionExAAParameters){
   
    // Find the most oversold members fof the S&P500 index by rankinn in order fo the lowest rsi(2)
    StaticVarRemove("RSI2*");
    StaticVarRemove("RankRSI2*");
   
    SymList = CategoryGetSymbols(categoryWatchlist, GetOption("FilterIncludeWatchlist"));
    for (i = 0; (tkSym = StrExtract(SymList, i) ) != ""; ++i){
   
        if (doTrace) _TRACE("Setting ranking info for symbol "+tkSym);
        if (SetForeign(tkSym)){
            rsi2 = RSI(2);
           
            // Only rank stocks when they are in the index
            inIndex = NorgateIndexConstituentTimeSeries(tkIndex);
            RestorePriceArrays();
           
            StaticVarSet("RSI2"+tkSym, IIf(inIndex,100-rsi2,-1e9));
           
        }
    }
    StaticVarGenerateRanks("Rank","RSI2",0,1224);
}

// Get the relative rank for the current symbol
// Highest ranking value will have a rank of 1

rsi2Rank = StaticVarGet("RankRSI2" + Name());

// Retrieve the original value used for ranking if needed?
rsi2 = StaticVarGet("RSI2" + Name());

// Use the rank as part of your entry code

I'm just wondering if anyone has already experimented with this concept? All thoughts welcome

 

[Captain_Chaza]

Surely the FIRST step in designing a $20K Portfolio is designing a
A Good Set of Sheets and Masts to the Maximum $Value of $20,000?

You could start with a Design of 4 low masted sails and a couple of Storm sails
ie: 4 x $4000 and 2 x $2000 = $20,000
(Pictured Below)

and hoist your sheets as they get signaled to be Presented to the Wind

ONE BY ONE!!
JUST do it ! ONE By ONE

NB; There is no prize in hoisting 2 or 3 sails at the same time
All you need is one or two 10 fold winners in the medium/ long term

YES! This is not easy
But it is possible
One ONLY needs to know How to Hold Them Tight when represented to the wind
and then Fold Them up and store them down below for another day

Sailing is not Rocket Science
It's as Easy as that!

Bon Voyage Captain Skate on your Greatest of all Challenges
I am looking forward to it and I am prepared to help in any way I can
You can always PM me for anything

 

[Gringotts Bank]

Hi everyone, I've been playing with amibroker rotational strategies this last week. Playing with the concept of dual momentum.

I came across this youtube tutorial, where the presenter uses python to run a backtest on a rotational strategy. Python is not ideal for this type of analysis but I am struggling to work out how to replicate the strategy is Amibroker.

Strategy:

Watchlist = NASDAQ 100

First Rank all tickers by their 200 day ROC and take the top 50 stocks from this ranked list

Rank these top 50 stocks by their 100 day ROC and take the top 25 from this 2nd ranked list

From this final list of 25 stocks, Rank them by their 50 day ROC and take the top 10 stocks

Buy all 10 tickers with equal weighting, ie 10% each.

Rotate Monthly.

I found a tutorial by Matt Radtke, also worth a look for those interested:


I've transcribed the amibroker AFL in his video. I think the secret will lie in a nested for loop where we generate separate static variables for each ROC... ie ROC200, ROC100 and ROC50.

ROC100 = iif( rankROC200 > 50, -1e9, ROC(C,100) );

Below is Radtke's code:

#include_once "Formulas\Norgate Data\Norgate Data Functions.afl"
doTrace = False;
tkIndex = "$SPX";

// Perform opeations that only need to be done once at the start of the analysis
if (Status("stocknum") == 0 AND Status("actionex") != actionPortfolio AND Status("actionex") != actionExAAParameters){
 
    // Find the most oversold members fof the S&P500 index by rankinn in order fo the lowest rsi(2)
    StaticVarRemove("RSI2*");
    StaticVarRemove("RankRSI2*");
 
    SymList = CategoryGetSymbols(categoryWatchlist, GetOption("FilterIncludeWatchlist"));
    for (i = 0; (tkSym = StrExtract(SymList, i) ) != ""; ++i){
 
        if (doTrace) _TRACE("Setting ranking info for symbol "+tkSym);
        if (SetForeign(tkSym)){
            rsi2 = RSI(2);
       
            // Only rank stocks when they are in the index
            inIndex = NorgateIndexConstituentTimeSeries(tkIndex);
            RestorePriceArrays();
       
            StaticVarSet("RSI2"+tkSym, IIf(inIndex,100-rsi2,-1e9));
       
        }
    }
    StaticVarGenerateRanks("Rank","RSI2",0,1224);
}

// Get the relative rank for the current symbol
// Highest ranking value will have a rank of 1

rsi2Rank = StaticVarGet("RankRSI2" + Name());

// Retrieve the original value used for ranking if needed?
rsi2 = StaticVarGet("RSI2" + Name());

// Use the rank as part of your entry code

I'm just wondering if anyone has already experimented with this concept? All thoughts welcome

What sort of results do you get running that code on ASX? Or, would you share your AB code please, so we can try it?


Instead of this:

First Rank all tickers by their 200 day ROC and take the top 50 stocks from this ranked list

Rank these top 50 stocks by their 100 day ROC and take the top 25 from this 2nd ranked list

From this final list of 25 stocks, Rank them by their 50 day ROC and take the top 10 stocks

could you weight them in a single line?

eg.

rank = 2*ROC(c,200) + 10*ROC(c,100) + 20*ROC(c,50)

or whatever weighting you like. This would obviously give more weighting to recent performance.

 

[qldfrog]

What sort of results do you get running that code on ASX? Or, would you share your AB code please, so we can try it?


Instead of this:

First Rank all tickers by their 200 day ROC and take the top 50 stocks from this ranked list

Rank these top 50 stocks by their 100 day ROC and take the top 25 from this 2nd ranked list

From this final list of 25 stocks, Rank them by their 50 day ROC and take the top 10 stocks

could you weight them in a single line?

eg.

rank = 2*ROC(c,200) + 10*ROC(c,100) + 20*ROC(c,50)

or whatever weighting you like. This would obviously give more weighting to recent performance.

Was thinking exactly the same, you do need to do a realm search, buy all and just set ranking (score) based on the roc of the stocks as the above or similar..
Only position score has to be code complex
Interesting challenge

 

[Willzy]

qldfrog and gringotts,

Thanks for your suggestions

Using something like:

rank = 2*ROC(c,200) + 10*ROC(c,100) + 20*ROC(c,50) along with rotational backtest and setting positionScore = rank etc, is the way I've been doing it in the past, I'll post up a generic example of this. Though I'm yet to find a solution I'm actually happy with...

The conundrum of the suggested system is that it requires multiple rounds of sorting and then discarding, TBH I think when I get it sorted the results of both methods will be quite similar.

I'll post up an example ami .afl tomorrow.

Cheers

 

[Skate]

Christmas
I asked what my wife would like for Christmas.

“A divorce”

I had to tell her that “I wasn’t planning on spending that much”

Skate.