For educational and entertainment purposes, we will follow up on three simulated equity portfolios on a weekly basis with the following simplified price action rules:

• • 50 000 will be invested in weekly tranches of 10 000 (dollar cost averaging) starting this weekend (2022-09-18)
  • All trades are placed on Sunday with the weekly closing price.
  • Pure paper trading. We disregard broker fees and dividends.
  • We use the top 5 S&P 500 and Dow Jones stocks by index weight: Apple, Amazon, Microsoft, Tesla, Alphabet, United Health, Goldman Sachs, McDonald’s, Amgen and Visa.
  • We follow the Vanilla Equity concentration restrictions: one stock may not exceed 25% of the portfolio value.
  • We follow the Vanilla Equity pay-out schedule, ie. after the quarter (31.12.2022) we can see how much we would have earned.

Portfolio A: “Let The Profits Run”

We sell the positions that had a weekly loss and use the money to increase our positions in the profitable positions. We stay fully invested.

Portfolio B: “Buy The Dip”

We sell half of each position that had a weekly gain and we buy half of each position that had a weekly loss. We can hold cash.

Portfolio C: “Buy And Hold”

After the first 5 weekends the portfolio is fully invested and trading halts. We stay fully invested.

Let the games begin.

Week 0

Portfolio A, B and C:

6 shs Apple (AAPL)  151,29

8 shs Amazon (AMZN) 124,30

4 shs Microsoft (MSFT) 245,65

3 shs Tesla (TSLA) 304,08

10 shs Alphabet (GOOGL) 103,22

2 shs UnitedHealth Group (UNH) 521,70

3 shs Goldman Sachs (GS) 326,21

4 shs McDonald’s (MCD) 255,79

4 shs Amgen (AMGN) 232

5 shs Visa (V) 193,82

rest cash

Benchmarks:

DOW (DJI) 30822,42

NASDAQ (COMP) 11448,40

S&P 500 (INX) 3873,33