QG Fund Update: 3 Months of Beating The Market


On March 30 of this year, I wrote a post about how I planned to implement the rest of the changes that were recommended by Cesar Alvarez after he did some backtesting of the QG Fund.

At that point, the fund had a total value of $94, 749.49. According to Yahoo! Finance, the S&P 500 had a value of 1857.62.

Since then, the DTAYS QG Fund has produced a return of 13.56%, which is almost double the 6.88% return that the S&P 500 has notched over the same time period. Things are good.

True to expectations, the revised QG Fund rules are performing much better than the general market during the hot bull market we have experienced over the past few months. The big question is whether it will also be able to protect those profits when the bottom eventually falls out of this market. Time will tell.

Overall Performance

The DTAYS QG Fund is currently sitting at a value of $107,599.73. This represents a gain of 7.60% on the year. The way that the fund has recovered after adjusting its rules earlier this year has been very impressive, and quite exciting to watch.

Here are what the individual holdings look like this weekend:


As you can see, the fund just keep riding its biggest winners higher and higher. Even the worst holding, AFSI, still has plenty of breathing room before an exit would be signalled in it.

Entries & Exits

Once again this week, there weren’t any moves to be made in the QG Fund. None of the positions came close to signalling exits, and with 9.5 of a possible 10 positions filled, there isn’t any room to add a new position.

If we did have room, here is what scanning this weekend’s IBD 50 for new 20-week highs produces:


With 16 out of 50 names at new 20-week highs, this is one of the best weeks I can remember. Adding in our ROC filter eliminates the bottom 7, and the HV filter takes out 4 of the remaining 9 stocks.

That means that the possible QG entries this week are LAD, CAR, TRN, SLXP, and FL.

It’s worth noting once again that during the entire three months that the QG Fund has been on this run, many people have believed the market could top at any minute. I am one of those people.

However, I don’t trade based on my guesswork opinion about what the market might do. I traded based on what the market is actually doing.

That means that the QG Fund is going to stay fullying invested until it receives signals to do otherwise. Those signals could start to appear on Monday morning, or they might not show up for another 3 years. It really doesn’t matter.

Photo Credit: Schl├╝sselbein2007 via Compfight cc