Dump it Here

[Skate]

I will (paper) trade this alongside your selections using a 'timing' approach if you are interested. Currently pays a 3.66% yield.

@ducati916, that would be perfect and appreciated.

Skate.

 

[divs4ever]

An ETF for all the reasons @peter2 has indicated is far easier and more efficient than handling 20 individual stocks, unless you are really going to vary those 20 stocks over time. If you are just buying and holding the same 20 stocks, I see little point...just buy the ETF.

easier , yes

but is the extra effort ( if you choose it ) rewarded adequately , sometimes it is

if i hadn't needed the money i would have retired around 40 ( not when i was forced to ) unlike many i rarely liked my job ( unless it was so bad i spent much of the time ridiculing it and management , dark humor has an upside )

i think i still need that extra buffer ( against inflation/depression ) so am willing to put the time and thought into it ) others will make different choices

the tweak @Skate used was equal weighting , which dilutes my concerns on the ASX current bias ( towards share price , rather than quality )

now given the @Skate experiment is the extra effort suitably rewarded ?

 

[divs4ever]

@ducati916, that would be perfect and appreciated.

+ 1

 

[Skate]

I will (paper) trade this alongside your selections using a 'timing' approach if you are interested. Currently pays a 3.66% yield.

@ducati916, I have previously posted doing something similar trading the ASX20 and taking the MACD signals.

The post can be found here

https://www.aussiestockforums.com/threads/dump-it-here.34425/post-1275471

Let's look at the results
The buy-and-hold strategy that I implemented, where I invested an equal $5,000 in each of the ASX20 companies, resulted in a capital gain of $27,514, which is a 5.5% return. The commission costs for this approach were $450.

In contrast, my active Trading Investment Strategy using MACD signals yielded a capital gain of $34,557, translating to a 6.9% return. However, the commission costs for this approach were higher at $2,610.

In conclusion
I've found that trading breakouts can be effective, though not always. However, they tend to perform well over the long term. The key takeaway here is that my active trading strategy using MACD signals was able to outperform the passive buy-and-hold approach by nearly 1.4% in terms of total returns. This suggests the MACD signals can be a useful tool for timing the market and capturing upside, at least in this particular case.

Skate.

 

[ducati916]

@ducati916, that would be perfect and appreciated.

Skate.

The US is closed Monday for Memorial Day. I'll start the experiment on Tuesday (Wednesday our time) with EWA.

jog on
duc

 

[divs4ever]

The US is closed Monday for Memorial Day. I'll start the experiment on Tuesday (Wednesday our time) with EWA.

jog on
duc

EWWW

the US holiday caught me off-guard

i wonder it that will affect Monday opportunities on the ASX ?

cheers and thanks

 

[Skate]

Disclaimer
This investment exercise is purely hypothetical and measures the performance of Australia's top 20 listed companies. The results solely focus on "Capital Gains" for the current financial year, with additional "information" on market capitalisation and dividend yield not included in the results.

The Objective of this Exercise
To explore a simple hypothetical scenario of investing $5,000 in each company in the ASX20 index as of July 1, 2023. The aim is to determine the current value of this theoretical $100k investment giving you a glimpse of the thrill and excitement of being involved in the markets.

Rebalancing the ASX20
The ASX20 (XTL) index comprises the top 20 stocks by float-adjusted market capitalisation. The ASX20 undergoes quarterly rebalancing in March, June, September, and December, with minimal rotation among constituents.



Skate.

 

[Skate]

The results solely focus on "Capital Gains" for the current financial year,

Key Change
Based on the new request, the ASX20 investment exercise will now include both capital gains and dividends in the total return calculations, but will not factor in franking credits as mentioned previously.

Skate.

 

[Skate]

Disclaimer
This investment exercise is purely hypothetical and measures the performance of Australia's top 20 listed companies. The results focus on "Capital Gains and Dividends" for the current financial year, with additional information on market capitalisation, dividend yield and franking credit percentages.

The Objective of this Exercise
The objective is to explore a simple hypothetical scenario of investing $5,000 in each company in the ASX20 index as of the 1st of July 2023. The aim is to determine the year-to-date returns, including capital gains and dividends, of this $100,000 investment.

Rebalancing the ASX20
The ASX20 (XTL) index comprises the top 20 stocks by float-adjusted market capitalisation. The index undergoes rebalancing each quarter to account for changes in the market caps of the constituent companies. However, for this exercise, the rebalancing will be performed only once per year, on the anniversary of the start date to help simplify the process.



Skate.

 

[Skate]

Not long now
The Summer Olympics are scheduled to take place in Paris from the 26th of July to the 11th of August 2024.


The Olympic Rings, composed of five interlocking rings coloured blue, black, red, yellow and green, represent the union of the five continents and the meeting of athletes from around the world at the Olympic Games. Together, these rings form a bond of peace and sportsmanship, celebrating the beauty of competition and the unity of humanity.



Skate.

 

[divs4ever]

Not long now
The Summer Olympics are scheduled to take place in Paris from the 26th of July to the 11th of August 2024.

View attachment 177714
The Olympic Rings, composed of five interlocking rings coloured blue, black, red, yellow and green, represent the union of the five continents and the meeting of athletes from around the world at the Olympic Games. Together, these rings form a bond of peace and sportsmanship, celebrating the beauty of competition and the unity of humanity.

View attachment 177717

Skate.

but will most likely turn into another five-ring circus and another financial loss for the host city/nation

i wonder how many athletes will 'over-stay ' during/after this one

PS are you sure the Asian color isn't gold , because that is where most of the growth will be

 

[farmerge]

Not long now
The Summer Olympics are scheduled to take place in Paris from the 26th of July to the 11th of August 2024.

View attachment 177714
The Olympic Rings, composed of five interlocking rings coloured blue, black, red, yellow and green, represent the union of the five continents and the meeting of athletes from around the world at the Olympic Games. Together, these rings form a bond of peace and sportsmanship, celebrating the beauty of competition and the unity of humanity.

View attachment 177717

Skate.

Professor, not too sure about peace and unity.

 

[divs4ever]

Professor, not too sure about peace and unity.

plenty of advertising though .. you can take that to the bank

 

[Richard Dale]

The objective is to explore a simple hypothetical scenario of investing $5,000 in each company in the ASX20 index as of the 1st of July 2023. The aim is to determine the year-to-date returns, including capital gains and dividends, of this $100,000 investment.

You've forgotten to incorporate the changes in the index since 1 Jul 2023. Survivorship bias fail.

 

[Skate]

You've forgotten to incorporate the changes in the index since 1 Jul 2023. Survivorship bias fail.

@Richard Dale, thank you for bringing that to my attention. You're right, it's crucial to stay updated with the latest changes in the ASX20 index to avoid survivorship bias.

After revisiting the ASX20 index composition on the 1st of July 2023, I acknowledge the adjustments in its lineup. For this exercise, I’ve opted for the current constituents of the (XTL) index as the representative 20 companies.

Thank you again for highlighting the need to account for the recent index changes. I appreciate you taking the time to provide that valuable feedback.

Skate.

 

[Captain_Chaza]

Would you do better if you only Sailed the ASX 19 and Cut the TLS loose? LOL!

 

[Captain_Chaza]

Would you do better if you only Sailed the ASX 19 and Cut the TLS loose? LOL!

I display a Chart of the TLS for you inspection

 

[Skate]

I display a Chart of the TLS for you inspection
View attachment 177759

@Captain_Chaza, indeed, there are strategies for trading Telstra Corporation Limited (TLS), yet as you’ve hinted, the journey may be fraught with challenges. The stock market chart for TLS, featuring candlestick patterns and technical indicators like MACD and Parabolic SAR, suggests a complex trading landscape that requires careful navigation.



Skate.

 

[Richard Dale]

After revisiting the ASX20 index composition on the 1st of July 2023, I acknowledge the adjustments in its lineup. For this exercise, I’ve opted for the current constituents of the (XTL) index as the representative 20 companies.

I think you actually mean "I acknowledge the error but choose to ignore it"

Unfortunately this lack of attention to detail is a big issue.

Investment strategies/trading system development shouldn't have these basic issues.

You've effectively left out 1 takeover (with scrip-for-scrip rollover relief for CGT) and then a subsequent capital event. You've also got unfranked dividends in the mix plus (foreign) withholding tax too.

It all gets ugly complicated quickly - spend the time to do it right - right now you're just doing a "throw 5 darts at the (inaccurate) top 20 strategy" versus "equal weighting of an inaccurate top 20"

Not enough rigour, in my opinion.

 

[Skate]

I think you actually mean "I acknowledge the error but choose to ignore it" Unfortunately this lack of attention to detail is a big issue. Investment strategies/trading system development shouldn't have these basic issues.

You've effectively left out 1 takeover (with scrip-for-scrip rollover relief for CGT) and then a subsequent capital event. You've also got unfranked dividends in the mix plus (foreign) withholding tax too.

It all gets ugly complicated quickly - spend the time to do it right - right now you're just doing a "throw 5 darts at the (inaccurate) top 20 strategy" versus "equal weighting of an inaccurate top 20"

Not enough rigour, in my opinion.

@Richard Dale, I understand your concerns regarding the accuracy and attention to detail of my recent "Buy the ASX20" investment approach are well taken. You're right that incorporating all relevant financial events, such as takeovers, capital events, and tax considerations, is crucial when posting. Thank you again for your valuable input.

Skate.