Short Term Portfolios

Hot Stocks provides a return on short-term trading portfolios ranging from 3 days to 12 months. Dividends are excluded from the trades, profit is generated from capital purchase only.

The following represents the outcome of all stock recommendations for IC Hot Stocks from 1-7-22 to 30-6-223.

Model Portfolio Size: $50,000 AUD
The Portfolio was $50,000 executed as instructed in the Real Market using CommSec Trading Platform and CommSec brokerage. As a high volume client we did receive discounted brokerage from CommSec.

Total Return On Investment (ROI) 80%

ROI includes brokerage.
Each trade was executed with a single investment unit of approximately $2,000. However, the trade was a whole number of shares so the cost approximated $2000.

Example:
19/7/22 ACL purchased 400 Shares $2036.00

Note:
Percentage return faded in June because we artificially moved to close trades by 30th June which created 6 additional small losses that may have resulted in profits if allowed to continue over 30th June.

Overall Outcome $90,156.29 (+$40,156.29)

The account started with $50,000 and 1 carryover position from May 2021 which ended as a losing trade.

Once again, the June results reflect by 6 early closeouts.

Overall Accuracy: 44.38%

This is substantially down on last 3 years average accuracy of 63% with only 2018 going lower at 39.06%.
The number of trades dramatically increased this year from an average of 150 trades to a total number of trades

Trade Structures

Reward to Risk Ratio RRR: 1.3:1

In most trades we are expecting to make at least $1.30 for every $1 we lose. Our overall average Reward to Risk Ratio was 1.9:1.

We only take trades where the expectation to earn is at least 10%

 

Stock Selection

The Investor Centre Portfolio team track world markets using a top down approach to the market – locating stocks that are out-performing the general market and market sectors.

We then look for stocks that have experienced “Elliss Big Money” – a unique indicator that identifies institutional buying in stocks that is indicative of a significant increase of greater than 10%.

A simple seasonal example:

Here ENR had a history of success with sudden interest and the chance of a significant announcement to come. This was estimated to take the price up 30% which was a successful trade. The target was derived from previous significant announcements history.

These tools are all available in the IC Investor Software Program and we primarily use a set of technical parameters on the world markets, local markets and then individual stocks to locate short-term opportunities in the market.

We have also identified a number of CFD trades which dominantly SHORT for 2022/23 FY. In the 23/24 year we will use more CFDs that assisted in lifting our performance.

A Spreadsheet of all trades for the year is available upon request.