Tuesday, December 11, 2012
T2, VTV applications,etc....12.11.12
T2's selection of XLP and IWM since 11/29 has worked out well but the model still remains in a stopped mode per the short term RSQ and P6.
Below is an example of one of many peripheral ways that the VTV Assist program (bundled with the VTV main program) can be used. While the VTV program is focused on capturing short term gains it can also be used to build long term portfolios with less than 6 components. In this case the model holds all 5 ETFs in equal dollar amounts...and holds and holds and holds. We just need to rebalance every month to make sure there are equal dollar allotments in each ETF. The results...we slightly beat SPY but the drawdown is miniscule. The RSQ of .98 tells the whole story. We actually don't even need to look at the Momentum rankings.