What A Great Day For The Perfect Portfolio

17 thoughts on “What A Great Day For The Perfect Portfolio”

1. Hi Adam

   Do you have a similar trading strategy to the longer term Perfect Portfolio for shorter term trading of stocks or forex - or is it a matter of a personal trading system with the help of trade triangles.

   I certainly like the Perfect Portfolio approach.

   Thanks.

   Dave

   1. Dave,

      Thank you for your feedback.

      The only other portfolio that we track is our World Commodity Portfolio. You can find the results here:http://club.ino.com/trading/2010/04/q1-gold-vs-world-commodity-portfolio/

      Our "Trade Triangle Technology" allows you to construct any type of portfolio you wish.

      Here are the rules for our "Trade Triangle Technology" approach.

      How "Trade Triangles" work in stocks.
      The major "Trade Triangle" to watch in trading stocks is the monthly "Trade Triangle" as this triangle determines the trend. We use the weekly "Trade Triangles" for timing purposes. Let me give you an example, if the last monthly "Trade Triangle" is green this indicates that the major trend is up for that stock. You would then use the initial monthly "Trade Triangle" as an entry point and use the weekly red "Trade Triangle" as a stop out point. You would only reenter a long position if and when a green "Trade Triangle" kicked in. You would then use a weekly red "Trade Triangle" as a stop out point. Providing that a monthly green "Trade Triangle" is in place the trend is positive for the stock. The reverse is true if a red monthly "Trade Triangle" shows that the trend is down. You would then use the weekly "Trade Triangle" for entering and exiting the market.

      How to use trade triangles in futures and Forex.
      In the futures and Forex markets we use the weekly "Trade Triangles" for trend and the daily "Trade Triangles" for timing. Let me give you an example of how that works. If a green weekly "Trade Triangle" is in place it indicates that the trend is positive for that market. Initial entry point would be on the weekly green "Trade Triangle" and then you would use a red daily "Trade Triangle" as a stop. For example if the trend was up on the weekly you would exit a position on a red daily triangle. This is not to go short but only to exit the position and wait for the trend to reestablish itself on the upside. In the event the trend that does not reestablish itself and reverses with a weekly red "Trade Triangle" you would go short on the weekly "Trade Triangle" and use the daily "Trade Triangle"for money management and reentry points.

      All the best,
      Adam

2. Tom,

   Thank you for your feedback.

   At the moment we are running flat out and have no one available to run the study which has to be done by hand. I'm confident however that our Trade Triangle approach would more than likely outperform a buy and hold program over time.

   The key to success in the market is to be: 1. diversified, 2. have a game plan 3. execute on those two initiatives.

   I hope this answers your question.

   All the best,
   Adam

3. Adam:

   It would be interesting to study lets say 10 years of data with trade triangles with a low cost lazy mans diversified portfolio consisting of vanguard mutual funds or equivalent etfs and comparing it to a buy and hold approach over the same period. There are many lazy portfolios on the web. Would one of your staff members consider running this study? In a sense, it seems you could create your own diversified long/short hedge fund and likely outperform a buy and hold approach. Thanks, Tom

4. Tom,

   Thanks for your feedback.

   The point of the Perfect Portfolio is you let the market or in this case the four markets tell you what they are going to do with the Trade Triangles.

   As long as the markets move in any direction for a given period of time the Perfect Portfolio will make money.

   That is why it is the Perfect Portfolio.

   All the best,
   Adam

5. The only problem I see with the perfect portfolio is what happens when
   the dollar reverses strongly? All 4 components of the perfect portfolio
   will get hammered won't they?

6. Hi Adam,
   I have recently gone long on gold, On October 8 to be exact. Since then it hasn't done anything because of this consolidation. I have been watching Palaladium at the same time and it has gone up almost 20 points since then. I am wondering whether Palladium is a bettter investment since it is still below its 2008 high. and also because of its recent climbing while gold hasnt moved at all. I feel that to go in on both is exposing myself to be to vulnerable to the U,S, dollar. What ii your opinion on allof this

   1. Harvey,

      Thank you for your feedback. My advice to you in regards to Palladium is stay away it is a very thin market and should only be left to professionals. Gold on the other hand offers far more liquidity which is a good thing in trading.

      I would not recommend going into both of these markets as I do not believe it is a good idea.

      All the best,
      Adam

7. two questions for Adam:
   1)SPY - if the markets corrects,(go down), then spy should go down, so according to the video, i would sell my long position and go short based on the monthly signal, is that correct?

   2)in prior video, the monthly signal was for establishing a trend and the weekly for trading. but now you suggest we use only the monthly signal. any comment?

   thanks for the videos and your help

   1. George,

      Thank you for your two questions.

      First question: that is correct.

      Second question: the perfect portfolio we illustrated is more suitable for long-term traders. It differs from our other strategy for trading stocks which is monthly trend and then weekly for timing.

      Thanks for your kind comments.

      All the best,
      Adam up

8. Hi Adam,

   I bought a position in USO when the weekly green was issued and the trading out very well. I am trying to add to the position to bring it to 25% of the portfolio as you suggested. Does it make sense to add to the position when a new high is seen for weekly green.

   Also what are your thoughts on UNG. I guess its totally different market with different dynamics.

   Thanks,
   Trikaal

   1. Trikaal,

      Thanks for the feedback.

      After a period of consolidation and when the market USO makes a new high, yes, that would be a pretty good time to add to one's position with a tight stop.

      I have no thoughts on UNG.

      All the best,
      Adam

9. Would now be a good time to buy the SPY at +75 or do I wait for it to go down further? Also what are the reverse etf's for the USO, FXE, and GLD?

   1. Barb,

      I cannot say definitively that now is a good time to buy the SPY. Here's the problem, if I advise you to buy now and the market goes down further I'm not going to look very good. If I advise you not to buy and the SPY goes up on then I'm going to look bad. So it's a no-win situation for me.

      What I do say is that use the Trade Triangles as I described them in the the Perfect Portfolio video.

      Over time they will work for you and they will make money for you.

      All the best,
      Adam

10. I really enjoy your comments. I need to know what the forex market is going to do a day in advance I have lost a bunch of money on this market. I am not getting the information in time to make the correct buys. Is there some method that you can give me the information,or sell it to me. I am going to be out of town untill Monday the 26.Please think about this I will get back to you than.
    CSM FRANK SIVIK (ret)

    1. Frank,

       That's an easy one.

       Try MarketClub for 30 days risk free. MarketClub has realtime quotes and charts on forex plus lots of videos to teach you how to trade.

       All the best,
       Adam

11. Hats off to ya Adam.I got in on the trade with one variation Long GDX instead of GLD.Only because miners are making more money even if GLD pullsback some. I have been long USO before I saw your video. Once you confirmed I increased my position in USO. Keep up the good work!!!

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