Monthly Update on the Eleven-Quarter System by Sid (from ElliottWavePredictions.com and ElevenQuarterStocks.com)
During the month of March 2014, I decided to track the effectiveness of the 11-Qtr-System moving forward using two different portfolios. One model portfolio will be named “The Non-Random Profits “Ideal System” Model Portfolio. This portfolio will theoretically buy $2000 worth of each qualifying 11-Qtr-Stock at the earliest qualification, and will sell each holding at its 3-year anniversary from initial purchase date. The intent of this portfolio is to forward-replicate as closely as possible the stock selection and holding period used in the 1936-1974 backtest in the original Non-Random Profits book. The results of this new portfolio so far this year are quite impressive. If an investor had started using the 11-Qtr-System on January 1 of this year, this portfolio would be holding 21 different stocks, and would be up 35.62% at the end of just one calendar quarter.
The second portfolio I will be tracking moving forward will be the same Investopedia Stock-Simulator based “Trading” portfolio I have shown on this site before. I will be actively trading this portfolio, and will selectively buy stocks at or below the PP using a combination of the 11-Qtr-System, Elliott Wave and its Fibonacci price targets, Hurst cycle analysis, money management principles, and consideration of where the overall stock markets are likely to be in their intermediate-term cycles. So far, this portfolio is up 7.1% YTD while the DJIA is down 0.7%. This portfolio started the year with a $100,000 balance and no open positions. It is currently sitting 69% in cash.