In 6 months the portfolio has gained 20%

Background

As a Naked Trader type investor in the UK markets for the past 10 years I have found myself with some reasonable success doubling my total portfolio within that time.   I have also found Naked Trader type investing to be easy to understand and simple to adopt while adding into Robbie Burns criteria my own important filters like the free cash flow.

But as an offshore worker, I have found it difficult to effectively manage several portfolios impossible due to slow (or overlay used) internet connections (via Satellite) while onboard vessels I really wanted to find another angle of investing that would be less intense.

During my first year using Stockopedia, I spend much of the time reading through all the material in the Stock Ranks, the hunter and farming approaches to stock selection and also portfolio management.

The farming approach appeared to me to be a more suitable system of investing that would fit my lifestyle.  The farming approach would allow me to check my portfolio even just once a month, and I would still be able to sleep at nights.

If only I had trust in the StockRanks and the only way for me to gain trust in the system is to actually use the system, using real money.  So last October I decided to take £19K from my main portfolio and create the farming test approach.  I actually thought I put in  £20k but it seems I mislead!   My ISA portfolio fund contains quite a large amount which I prefer not to disclose.  But within this fund is my farmed portfolio, started on the 16th October with a cash amount of £18, 992.

My Farming Rules

  1. The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66)  
  2. Dividend Yield 12 month rolling > 0
  3. Market Cap > £20m
  4. Spread (bps) < 500
  5. Sector includes - One screener for each sector (10 sectors in total)

I also subscribe to the US & UK Edition. I only have one US stock (Tesoro) and I seem to have difficulty with adding other US stocks into my ISA via my broker.   So my decision may be to revert back to just UK stocks for this portfolio.

Exit Plan

A stock will leave the portfolio when it goes below StockRank…

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