If there’s sufficient interest, I’ll share the method to my madness with people I know who ask to hear about it, but only via email. The short of it is, I’m testing a stock strategy out (*not* with real money). I track my results on a weekly basis. Occasionally I’ll post them here. This is the first time I will have posted results so I’m sure the format can improve.
I calculate absolute results for my returns and compare my results to an average of the Dow, Nasdaq and S&P 500 as well as an average of 10 mutual funds that I currently or recently had real money in. I calculate both weekly returns and keep absolute portfolio balances for the strategy (and the indexes). My balances are normalized to the start date of the test, however, I also recalculate cumulative average weekly rates of return starting each week I’ve run the test. I’ll summarize those results with the simplest labels I can here.
I’ll call my fund “stocks”, the 3-index fund “index” and the 10-mutual fund “mutuals”
This week’s returns:
Index: 1.59%
Mutuals: 1.75%
Stocks: 1.24%
Stocks performance this week relative to:
Mutuals: -.51%
Index: -.35%
Average weekly performance since inception (note: weekly rates, not annual rates):
Index: -.28%
Mutuals: -.35%
Stocks: .34%
Stocks average weekly performance since inception relative to:
Mutuals: .72%
Index: .65%
Current balances (all funds started with $25,000 on 7/19/07):
Index: $22656.28
Mutual: $22200.33
Stock: $25583.92
Annualized Rate of Return for funds:
Index: -14.88%
Mutual: -17.67%
Stock: 3.85%
That’s all for now…