I recently made a bet with a family member who happens to be very high up in the big 4.
He seems to think that investing takes a huge amount of skill whereas I like to argue that that anyone that can follow a simple model will do fairly well for themselves. After seeing the other posts on this sub-forum I felt this would be a good place to keep tabs on the progress of the bet.
Without going into too many boring details the bet comes down to me being able to come up with a system that comfortably beats the market using only one page of yahoo data.
The rules for my algorithm are really simple:
- All data must come from the yahoo page found at 'https://au.finance.yahoo.com/q/ks?s'
- Companies are ranked by several factors with the top 20 being purchased each month
- Companies must have positive operating cash flow & return on equity
- The 50 day simple moving average must be above the 200 day
- No stop loss or risk control
I will be posting an updated spreadsheets on this page at the beginning and end of each month to show performance.
Here is a backtest on US stocks showing how the strategy did from 2005 until present day.
Sharpe = 1.87, Sortino = 2.51, Drawdown = 59.9%
There are no guarantees for future performance but if I can make one snobby investment banker slightly less conceited then the world will be a much nicer place for everyone
*Disclaimer intended for entertainment purposes only
**Do not consider anything on this page as investment advice