Nick Radge’s Premium Portfolio

Published December 30th, 2021

‘High Growth’ Strategy for the US Market

By Nick Radge

The Premium Portfolio is my ‘high growth’ portfolio that mainly sources trades from the Momo-50 List.

This portfolio is an intermediate-term (6 – 8 months) active investment strategy that attempts to remain fully invested when the market is rising and automatically reverts to cash during sustained bearish markets such as witnessed during the 2008 Global Financial Crisis.

It’s systematic meaning that it does not rely on human opinion or any type of discretionary analysis. It derives the vast majority of its buy and sell signals from the Momo-50 List using non-disclosed mathematical algorithms which have been tested over many years of data and market conditions.

Originally the strategy traded just once a month. However, ongoing research suggested that signal timing luck could play an important role in performance.

The portfolio I now operate has been divided into two; 50% has been allocated to the original monthly signals and 50% has been allocated to the weekly signals. The added weekly rotation will now diversify returns and reduce signal timing luck.

The maximum number of positions I hold in each portfolio is 5. This concentration does increase volatility but ensures greater focus on the strongest stocks which in turn enhances performance.

How it Works

At the end of each week, and again at the end of each month, our model scans the universe to identify the strongest performing stocks. If the investment criteria are met, then the stock is bought.

Existing positions, ones that carry over to the next week or month, are held.

Positions that do not meet the investment criteria are sold.

Performance

To view the month by month performance for the past 14 years, login or join the Free Watch Lists, and click through to the Performance tab.

Portfolio Capsule Summary

# Trades / Year:       16 – 40
Avg Hold Time:        96 days
CAGR:                      29.8%
Max Drawdown:     -31.45%
Win Rate:                 59.5%
Win/Loss Ratio:        2.82
Avg Win:                  28.87%
Avg Loss:                 -8.76%

Nick Radge’s Premium Portfolio FAQs

How much does it cost to follow the Premium Portfolio?
The Premium Portfolio is US$495 per annum

Which broker do you use?
I use Interactive Brokers for this portfolio. Any discount or online broker will be fine.

Only having five positions doesn’t offer much diversification?
This portfolio is designed to be aggressive and generate high returns. We take on a concentrated portfolio of the strongest stocks. It is possible that more than a core 5 positions could be held at times. It’s unlikely 10 different positions would be held at any given time.

Do you use leverage?
No.

Do you trade short?
No. Research and experience shows that being in cash is stress-free and cheaper than attempting to trade bear markets.

Do you trade this strategy in your Retirement or 401K account?
I do not trade this specific strategy in my retirement account. I do trade another very similar version in it.

Do you sit in front of your computer each day to manage this strategy?
No. The portfolio is updated after the close of business on the last trading day of each week and each month – I put a reminder in my diary. Orders are placed anytime after that close for the next days open.

Any information provided on this website is general advice only and does not take account of investors’ goals and/or objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their objectives, financial situation or needs.