Contents:
- Portfolio Performance Overview (January 17, 2025)
- Portfolio Allocation & Trading Strategy
- Key Lessons from Week 3 & BETA's Role in Refining Our Strategy
- Key Takeaways & Next Steps for BETA
- Conclusion
As we head into Week 3 of live testing our Modified 10-Step Trading Plan, we continue refining our trading strategy through our Budget Ethical Trading Account (BETA). This dedicated trading portfolio allows us to track our active trading results separately from our Micro Stock Trading Investment Portfolio, which maintains a mix of long-term investments and short-term trades.
Our journey began with the 8-Step Trading Plan, inspired by Oliver Velez, which served as our foundational trading structure. However, through daily trade analysis, we identified areas for improvement, leading to the evolution of the Modified 10-Step Trading Plan (Read More). Now, with BETA in place, we can fine-tune our strategies under real market conditions and adjust as needed.
| AS OF: | JANUARY 18, 2025 |
| PORTFOLIO SUMMARY | BETA |
| Inception Date: | January 15, 2025 |
| Initial Deposit: | Php 15,000.00 |
| Net Cash Flows: | Php 21,228.38 |
| Adjusted Principal Portfolio Value: | Php 36,228.38 |
| Starting Portfolio Value: | Php 36,228.38 |
| Ending Portolio Value: | Php 35,977.93 |
| Realized Gain/Loss: | - Php 250.46 |
| Percent Realized Gain/Loss: | - 0.69% |
| PORTFOLIO ALLOCATION: | 100% |
| Universal Robina Corporation (URC) | 22% |
| RL Commercial REIT, Inc. (RCR) | 17% |
| Cash Balance | 62% |
| DIVIDENDS: | 0 |
| Universal Robina Corporation (URC) | 0 |
| RL Commercial REIT, Inc. (RCR) | 0 |
| NUMBER OF TRANSACTIONS | 13 |
Portfolio Performance Overview (January 15 to 17, 2025)
- Initial Deposit: PHP 15,000.00
- Net Cash Flows: PHP 21,228.38
- Adjusted Principal Portfolio Value: PHP 36,228.38
- Starting Portfolio Value: PHP 36,228.38
- Ending Portfolio Value: PHP 35,977.93
- Realized Gain/Loss: -PHP 250.46
- Unrealized Gain/Loss: -0.69%
Portfolio Allocation & Trading Strategy
- Universal Robina Corporation (URC): 22%
- RL Commercial REIT, Inc. (RCR): 17%
- Cash Balance: 62%
Key Lessons from Week 3 & BETA's Role in Refining Our Strategy
1. The Importance of Stop-Loss Adjustments in Live Trading
One of the biggest takeaways from Week 3 has been the need for a dynamic stop-loss setup in response to market volatility. Early on, we encountered significant price swings, reinforcing the importance of:
✔ Hard Stop-Loss: A rigid, non-negotiable level that protects capital from deep drawdowns.
✔ Dynamic Stop-Loss: A flexible approach that adapts to market conditions, helping us capture gains while managing risk.
Our experiences in Week 3 have shown that without proper stop-loss implementation, small trading accounts like BETA can quickly erode capital. (Read More)
2. Tactical Entries & Exits: Balancing Strategy with Transaction Costs
Another critical evolution in our trading approach has been refining tactical entries and exits, particularly when considering transaction costs. In smaller accounts, frequent trades can eat into profits, requiring a careful balance between execution and cost efficiency.
Key adjustments made in BETA:
✔ Tactical Entries: Smaller, strategic positions placed at key market levels.
✔ Core Positions: Longer-hold positions based on a strong technical setup.
✔ Transaction Cost Consideration: Ensuring each trade has a sufficient risk-reward ratio to justify execution.
These refinements allow us to protect our trading capital while maintaining active market participation. (Read More)
Key Takeaways & Next Steps for BETA
1️⃣ Live Testing Validates Strategy Adjustments:
- The Modified 10-Step Trading Plan has improved execution clarity by separating tactical trading (BETA) from long-term investments (Micro Stock Trading Investment Portfolio).
2️⃣ Stop-Loss Refinements Are Crucial for Small Accounts:
- Hard stops protect capital, while dynamic stop-losses ensure we stay in profitable trades while reducing downside exposure.
3️⃣ Efficient Tactical Entries/Exits Are Necessary for Long-Term Growth:
- Managing transaction costs and ensuring proper trade setups will be a continued focus in upcoming weeks.
Conclusion
The launch of BETA Trading Account in Week 3 marks an important milestone in our trading strategy evolution. By tracking our active trading activities separately, we can refine execution, manage risk, and optimize tactical trading without affecting long-term investment holdings.
As we move forward, our focus will be on adapting to market conditions while maintaining strict discipline in execution. The lessons learned in BETA will serve as the foundation for improving our overall investment approach in both trading and portfolio management.
📢 Stay tuned for next week's update as we continue refining our strategy in live market conditions!
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader Portfolio Tracker Page
