# Compound Algo (new stocks strategy)

**URL:** https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791
**Category:** Trading and Markets
**Created:** [March 25, 2019, 5:01pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791 "2019-03-25T17:01:39Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![MarekJ](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/marekj/32/638_2.png) [@MarekJ](https://forums.collective2.com/u/MarekJ)
#### Post date: [March 25, 2019, 5:01pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791/1 "2019-03-25T17:01:39Z")

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I’m checking if there is any interest in stocks strategy (long 125%, short 50% of account size) based on proprietary stocks ranking and monthly rebalancing. The strategy will contain up to 10 stocks on the long side and up to 4 stocks on the short side, with minimum capitalization above 5B. I want to price this strategy at $99, run as 100% TOS, with initial capital 100k. Backtested performance of past 3 years below:

 ![image](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/2X/e/ebb36c25fb935fb2da1a2dea15ab8c8c9a360248.png)

Any comments?

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### Author: ![AlgoSystems](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/algosystems/32/12306_2.png) [@AlgoSystems](https://forums.collective2.com/u/AlgoSystems)
#### Post date: [March 25, 2019, 5:14pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791/2 "2019-03-25T17:14:31Z")

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Nice concept @MarekJ!

It will always be nice to have another hedge strategy!

I’m cheering for you!

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### Author: ![LeoBrissette](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/leobrissette/32/6214_2.png) [@LeoBrissette](https://forums.collective2.com/u/LeoBrissette)
#### Post date: [March 30, 2019, 11:30pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791/3 "2019-03-30T23:30:17Z")

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Looks REALLY promising! The only concern I have is the last three years have been Bullish so how does the backtest looking in bear/down market? I really like the equity curve SMOOTH

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### Author: ![MarekJ](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/marekj/32/638_2.png) [@MarekJ](https://forums.collective2.com/u/MarekJ)
#### Post date: [March 30, 2019, 11:53pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791/4 "2019-03-30T23:53:47Z")

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Unfortunately, I cannot go further than 3 years back (some inputs I’m using are not available before 2016). At the moment, I’m not sure when I will run this strategy. My last 12 months performance is twice better than strategy performance. Also, I want to observe strategy by a few months to check how it behaves without any input changes. Below chart for the past 12 months:

 ![image](https://canada1.discourse-cdn.com/flex028/uploads/collective2/original/2X/4/45bf863b986f85ab1adcd9f2e8766dde7696cb10.png)

Also, the goal of the strategy is outperforming SPY in up and down markets, not absolute return. From 2016 we had a few corrections in SPY and strategy did hold very well during these periods.

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### Author: ![LeoBrissette](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/leobrissette/32/6214_2.png) [@LeoBrissette](https://forums.collective2.com/u/LeoBrissette)
#### Post date: [March 31, 2019, 12:01pm UTC](https://forums.collective2.com/t/compound-algo-new-stocks-strategy/12791/5 "2019-03-31T12:01:44Z")

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Thank you for the Info – keep up the good work. Would be nice if we had longer time test, but I understand.