ridge's list... the power of the pyramid.

  1. 3,694 Posts.
    Just out of curiosity I've taken R's list, applied a 20% stoploss and a 20% pyramid rule (tightening s/l to 15% on any stock pyramided).

    So far 27 stocks have been stopped out starting with PTD which didn't see the light of day, and the most recent LOK. Over the same time I've 'bought' 31 lots at a $1000 a time.

    The anomaly of more spent than gained through stoploss sales is explained by the fact that a number sold had already pyramided. LOK for instance was added to 3 times but only sold once.

    Since I allow a nominal $20 commission on each transaction, $1160 has been spent on commission.

    Currently there are 2 stocks which have been added to 3 times (SLX, PNA), 4 that have been pryramided twice (ADA, OXR, PLA, PSA) and a 9 that have been pyramided once.

    The system has 3 basic flaws that I can see.
    1. Too many stocks at $1000 per holding wastes too much in commisssion.
    2. Since this is only curiosity value and I don't follow these stocks I made no provision for re-entry of any that were stopped out. PTD for instance bottomed at 79. An entry at the +20% mark would have re-entered at 95c.
    3. TA exponents would pick better entry/exit points. My system is purely arithmetical.

    However bottom line is that the Ridge Stoploss Enabled List (RSEL) was at close Friday worth $66,467 vs $63,328 ( is that the figure you have Ridge?) for the vanilla RL.

    The only observation I would make is that HC's made some pretty fair selections and that pyramiding winners is probably as important as cutting losers.

    PS I'd print the spreadsheet but a. I don't know how to and b, it's sortov grown across 3 screens as I've added refinements.
 
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