New Portfolio Weights

As I discussed in other posts this month, I have terminated extreme-os and decided on trading Longstoch-ST instead. Another (4th) system I will include is ARS, which has a history of over 2 years on C2. I will discuss the reasons for including both systems in subsequent posts this week, and for now will stick to the new portfolio weights:

Weekend Trader: 20%
ARS: 65%
Trend Plays #1: 56%
Longstoch-ST: 59%

(note that as before the weights sum up to 200% to reflect 2:1 leverage)

The current weights of Weekend Trader (48%) and Trend Plays #1 (72%) in my account are somewhat different from their new weights. To transition to the new weights, I could sell part of shares for each position. However, these systems hold positions quite long and I may find myself adjusting positions every month, which becomes quite costly in terms of commissions and spreads. Therefore I have decided to change the weights more gradually, i.e. whenever a new trade will be issued for Weekend Trader and Trend Plays #1 this new position will be scaled using the new weight and hence it might take a few weeks/months before the system settles on its new weight (i.e. when all positions have been renewed).

This also means that currently, I can't allocate the full 65% and 59% to ARS and Longstoch-ST (unless I would accept more than 2:1 leverage) and instead will settle for 40% for each. From now on I will post the real weights regularly and monitor how they converge to the target weights.