Author: Jesse Barkasy
Covestor model: Trend Following
My trend following model has had a disappointing and difficult few months. As it is rated 5 on Covestor’s risk scale, the model appropriately took positions in some smaller, riskier names and it was whipsawed out of many of those positions.
Meanwhile, many large cap and medium to large cap stocks that we did not purchase have put in a very strong first four months of the year. So goes trading with limited and concentrated risk capital.
The only saving grace we have is that we cut losses quickly, so we live to trade and invest another day as some stocks such as Groupon (GRPN) got pummeled even worse after our loss cutting procedure.
There are no excuses in the market, though. The model’s performance has been bad and we will adjust to attempt to get it right and sync up with this market.
We will hang on and attempt to capture those few great trends that will make our years and our decades profitable.
