Hello Subscribers and other interested parties,

You may have noticed that the model portfolios position sizes have been moving higher. This is due to the higher portfolio value. The position size will naturally move higher as gains are redistributed into newly selected stocks. Of course the position size will move lower if losses occur and the portfolio value moves lower. The main point I would like to stress, is that no matter what the value of the portfolio, the total amount invested vs the total amount in cash/market neutral, remain the same. For this particular signal, the model portfolio tries to keep 65-70% invested equally among 10 stocks while keeping 30-35% in cash/market neutral. No leverage is used.

Emotional/Mental:
HPS has had a good month and everyone that has followed the model portfolio, should be pleased. However, try not to get overly excited when you have a good streak or overly agitated if you have a bad streak. Try to think of trading as a business, wins and losses are all just a part of that business. I know I sound like a broken record, but have a investment plan (use the one above if you like) and stick to that plan. Fear and greed are investor's worst enemies; use your trading plan to combat them.

At Optimum Systems, we will have wins and we will have losses, but we think we have found an edge. It's up to every subscriber to put the odds in their favor and play that edge. Are you meeting or beating the model portfolio gains?
Yes? Congratulations! It gives me great pleasure to hear that our subscribers are successful.
No? Why not? Try to track your trades that did not make as much money as the model portfolio. Find out the reasons.

I welcome all comments and questions. For those of you who wish to participate in this discussion, I offer a 15% discount off the first month subscription fee. Please write me off-line and I will provide you with a coupon code.