Anybody who is beating these markets? Can you share what you are doing right?

[InspectorSector]

I wonder if it would have been better to hold the ETFs (SKYY & XAR) than trying to trade individual stocks. From the inception of Steve’s ports to date (April 29) both of these ETFs have very similar results to the ports, even slightly ahead.

I am just following up here on AZ’s comment. The performance of my Cloud Computing DM has been “unremarkable” in comparison with the SKYY ETF. I have attached the performance graphs in this post below.

However, I would also like to show how the DM performed after initial release (first year) and also after it was revised on Nov 20, 2020. The outperformance of the DM post-optimization has been pretty good. The problem is that I did not re-optimize periodically once I initially released the model. That is my bad.

These graphs are only anecdotal and of course not exhaustive proof for anything. But they do support my rule of thumb which is to only run an optimized model out-of-sample for 1/4th to 1/5th the time period of the in-sample optimization period. For my models, I optimize (in sample) over the last 5 years. Then I allow the portfolio to run for one year. Then it should be re-optimized again for the five years and allowed to run for one year i.e. rinse and repeat.

As an aside, Cloud Computing is beating the pants off of every other market niche. I encourage everyone to get in on this, buy the SKYY ETF or whatever. We are witnessing the fourth industrial revolution.

SteveA

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[InmanRoshi]

There is also a Cloud ETF that Wisdom Tree put out - $WCLD. Its only been out since September and aims to reflect an emerging cloud index that Nasdaq created. Index methodology is listed below, and could probably be duplicated rather easily on P123 creating a custom universe. I have no doubt some one is going to come away as the next Amazon out of this transition, but I’m not savvy enough in the space to place individual bets. It’s been a nice counter balance to some of my small cap value ports. These things are just so low capital expenditure that once they hit enough revenue to get their head above profitability, like Dropbox recently did, they’re incredible compounding machines.

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[InspectorSector]

There is also an upcoming ETF that I am anxiously waiting for. It is a Work-From-Home ETF and will be run by Direxion. I understand the symbol will be WFH.