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1. What was your annual return with the Folio approach? Would this approach be profitable in a $10/trade account with Schawb? I just don't know if I am quick enough to do the short term approach though I have been trying for the past year...volatility is killing me. ... Roger Last year, the Folio approach (TSM mutual fund) took $100,000 to $114,588 (versus S&P to $108,503) so the overall return was +14.6 percent. Over the year, 25 of 32 folios were profitable (78.13 percent win rate) averaging +2.23 percent for an average 33 day hold period. The component stocks returned at an average rate of +2.60 percent (31 percent annualized) for 488 winners and 288 losers (62.89 percent win rate). Note, the overall return is less outstanding than the individual folio or stock performance because of its conservative approach taken (only 1/5 of account's cash invested in each folio on a rotating basis; takes 5 folios to fully deploy cash initially and after each stop). I like the approach because: (1) it requires less oversight; (2) it is mechanical in its approach; (3) it is far less at risk to bad news for individual stocks (like VIP tax liability suddenly applied by the Russian government). The overall quality of the TSM approach to qualifying stocks produces the high win rate for the individual stock trades: returns are about the same on an annualized basis as the individual stock trading approach (58.37 percent with an average hold time of 9.1 days). There are too many trades to pay $10 per. This mutual-fund-like approach needs to be taken through a folio-type account that allows up to 600 trades monthly for a total cost of $19.95. The shorter term TSM approach uses technical signals to trade TSM stocks. This is not trading minute-by-minute. One enters the trade at an appropriate buy point (I do this automatically with a Cybertrader alert), enters a protective stop loss point to sell the two halves of each position, then watches for profit targets to be hit. On average, each trade is held for 9.1 days; 58.3 percent are winners; and the average annualized return per trade is 39 percent.
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