Stock Portfolio Simulation - Week 0

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:

A) 50 000 will be invested in weekly tranches of 10 000 (dollar cost averaging) starting this weekend (2022-09-18)

B) All trades are placed on Sunday with the weekly closing price.

C) Pure paper trading. We disregard broker fees and dividends.

D) 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.

E) We follow the Vanilla Equity concentration restrictions: one stock may not exceed 25% of the portfolio value.

F) 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.
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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

VanillaEquity.com
#portfoliomanagement #daytrading #sidehustle

This is not financial advice.