I have been reading through the trading plan for the EW ASX stock public portfolio and have a couple questions,
It mentions ’ Stock Filter will be used for all SPA3 Investor Entry Signals’. What is this and how is this applied in the Beyond charts scan? Is it automatically applied? Struggling to find clear info on what this is?
A few years ago, the public portfolio used to use BAPs as signals, however now it doesnt appear to. Based on the re optimisation white paper, it looks like with BAPs gives higher returns. I was just wondering what the reasoning behind deciding to not take BAPs in the portfolio plan?
The stock filter can reduce portfolio drawdown in choppy sideways markets, but may do so at the expense of performance.
After extensive re-researching of the SPA3 Investor system parameters it was decided to no longer apply the stock filter to the default scan.
It can be re-applied if members want to instigate the filter, by going to the parameters panel and selecting “true”. Likewise the Sentiment Risk can also be edited.
Applying either of the filters will generally produce a much less volatile portfolio, and therefore lower growth. Hence the reason for disabling them.
Whilst BAP (Below Action Price) entries have their own edge and can help to provide greater portfolio exposure, they also tend to produce higher levels of portfolio drawdown.
They were removed from the default scan and the public portfolio investment plan.
