I was planning to launch some designer models in a few months and I had a few questions.
Right now I am planning to launch eight models. I’m listing them in order of potential returns, with the first model probably having the highest return.
- Minimum daily dollar volume $250,000, 5X turnover, weekly rebalance
- Minimum daily dollar volume $250,000, 5X turnover, weekly rebalance, low beta
- Minimum daily dollar volume $250,000, 2X turnover, 3-month rebalance
- Minimum daily dollar volume $250,000, 2X turnover, 3-month rebalance, low beta
- Minimum daily dollar volume $1 million, 5X turnover, weekly rebalance
- Minimum daily dollar volume $1 million, 5X turnover, weekly rebalance, low beta
- Minimum daily dollar volume $1 million, 2X turnover, 3-month rebalance
- Minimum daily dollar volume $1 million, 2X turnover, 3-month rebalance, low beta
All of these models are loosely based on the ranking systems I currently use for my own investments. See below for my live portfolio returns based on this system, with variable slippage.
Are these all appealing or are some less appealing? Do you have any suggestions about this? How many stocks should I put in each model? I’m thinking of charging $100 per subscriber—how many subscribers should I allow per model, and does this price make sense? Should some of these models be more expensive than others? I like to update my ranking systems from time to time as I perform more backtests, as I come up with new ideas, and as the markets change—is this OK or is it frowned upon?