About

Kamakura_Beach_1800
After many years of struggle in the financial markets, I came to the conclusion that I need to have a portfolio framework that I can consistently follow and that is written down in an individually tailored investment plan to be a successful investor.


This blog serves as a guide for my own investments – it comes from an individual investor´s perspective and experience.
I invite you to look over my shoulder and share my journey to build an active, professional investment portfolio from a very wide range of options – distilled both from classic portfolio allocation principles and more unconventional systematic approaches.
I describe my own practical implementation of the most compelling investment and trading strategies I can find, the difficulties I encounter and how I navigate the overwhelming amount of information out there.
My focus is on evidence-based investing paired with common sense to filter out the noise and figure out what really works. I use freely available tools and research to invest and trade systematically without the advantage of having a background in data science or math.



The blog´s main purpose is to aid me in keeping my investment approach on a straight path and to help me think clearly about different investment issues. I can go back and regularly re-read my line of reasoning and follow the evolution of my plan through time.
I hope you, as a reader, can gain the same advantage.
The gap between investment theory and its practical implementation is often quite large and difficult to narrow.

I put together a rulebook for strategic investing to serve as a guideline to create and evolve a written investment plan to manage my own money. You can read my investment blueprint on this blog by following the numbered posts 1 through 9.
Unnumbered posts delve deeper, reflecting subjects I research and new ideas I develop, because I think they are interesting and may be important to my investments.


I take some basic investment knowledge for granted in my writing – individual investors who are interested in a sophisticated, complex and active approach to trading and investing will find it most useful.
My goal is to create an adaptive, diversified portfolio of asset classes, return factors and trading strategies that yields high risk-adjusted returns in different market environments.



I think of it as building a personal hedge fund to manage my own money.

Monthly return and equity curve of my portfolio
I indexed the equity curve to a starting value of 100.000 as in reality my equity value changes due to withdrawals and deposits.


equity-curve-9-18


Date Monthly Return Equity NAV Annual Return Portfolio Statistics
1-Nov-2015 0 100000
1-Dez-2015 1,19% 101190 Compound Return
1-Jan-2016 1,14% 102344 1,19% 20,90%
1-Feb-2016 0,44% 102794 Standard Deviation
1-März-2016 1,04% 103863 10,75%
1-Apr-2016 1,43% 105348 Sharpe Ratio
1-Mai-2016 2,20% 107666 1,94
1-Juni-2016 2,42% 110271
1-Juli-2016 3,50% 114131
1-Aug-2016 2,61% 117110
1-Sep-2016 2,20% 119686
1-Okt-2016 2,55% 122738
1-Nov-2016 2,09% 125303
1-Dez-2016 1,83% 127596
1-Jan-2017 2,39% 130646 24,70% 2016
1-Feb-2017 4,26% 136211
1-März-2017 1,69% 138513
1-Apr-2017 1,52% 140619
1-Mai-2017 0,40% 141181
1-Juni-2017 -11,27% 125264
1-Juli-2017 -0,38% 124786
1-Aug-2017 4,99% 131009
1-Sep-2017 1,65% 133176
1-Okt-2017 6,42% 141720
1-Nov-2017 1,09% 143260
1-Dez-2017 -2,13% 140208
1-Jan-2018 7,17% 150259 15,40% 2017
1-Feb-2018 2,51% 154027
1-März-2018 13,82% 175318
1-Apr-2018 -6,19% 164459
1-Mai-2018 5,62% 173695
1-Juni-2018 -1,81% 170550
1-Juli-2018 -14,94% 145064
1-Aug-2018 7,24% 155564
1-Sep-2018 4,13% 161983 10,36% YTD 2018
Notes:
  • Until June 2017 I calculated my equity using realized profits and losses which has smoothed the equity curve artificially and resulted in a higher than actual loss recorded in June 2017, when I switched to recording the percentage change of my actual net asset value at the end of each month.
  • A drawdown reached -16,75% at month´s end of June 2018. As uncomfortable as experiencing such a drawdown is, it also presents an opportunity to improve the investing process and to learn to avoid mistakes in execution in the future.

 

I wish you all the best in your investing endeavors.

 

David Steets

 

mail at systematicindividualinvesting dot com

 

all photographs: copyright henglein & steets | fotografie




DISCLAIMER
This is a guide for my own investment approach. It is not meant to be investment advice to others.
I have no professional training in investing and am not qualified to give investment advice. This blog is for entertainment purposes only.





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