In Autumn 2017 I started my version of the 'NAPS system', which I'm calling 'The Greenhouse NAPS'. I didn't get around to writing it up until Spring 2018. In this post I'm keeping track of the sales, buys and performance of the system. I'll be honest, it probably isn't the most exciting read, and is more to allow me to be completely open with my trades, and to make me reflect a bit on the portfolio.
First three months - Sells
The first three months of the portfolio saw the first four stocks cut. Amino Technologies (25/10/17), Mondi (12/11/17) and X5 Retail NV (28/11/17) all lost 10% of their value so hit their stop loss and were sold.
Globaltrans Investment I sold on the 3/12/17 and feel a bit guilty about, for reasons that will become apparent. At the time, I was aware I'd had three stocks hit their 10% stop losses, which I wasn't expecting. I was therefore toying with the idea of a 5% stop loss. However, if I'm brutally honest in my reflection, this was more my emotions making the decision than me tweaking and applying the rules. Woops....
Ialso sold Headlam at a loss of 7% on the 26/12/17. The logic behind this is that I was thinking this would be a quarterly rebalanced portfolio. I had lost 4 stocks, but needed a 5th to rebalance a quarter of my portfolio after a quarter of a year. Headlam was the worst performing so was cut.
First Three months - performance
Overall, the first three months felt like they went pretty well. The portfolio value climbed from 60k to a little over £64k, a return of 6.7% in 3 months. Not bad at all, until you compare to the FTSE which went up 5.6% in the same period. Still, I took heart from the fact this portfolio is designed to get better as it gets older, so maybe that wasn't too bad.
First Three months - Buys
My first round of rebalancing was on Boxing day (Yes, I know the markets weren't open, but this is a paper portfolio damn it!). In addition to selling the aforementioned Headlam, I also got to bring my portfolio back up to scratch after having a sizeable chunk of money sitting around not doing anything.
SCS | Buy | 1432 | 209.43p | |