Referral link below
Referral Credits (Effective June 2021)
The strategy's primary goal is to locate large-cap stocks rising in controlled uptrends. Volatility is avoided; predictable and steady uptrends are preferred.
The portfolio is aggressive and concentrated (maximum of 5 companies). If fewer than 5 companies pass the system's strict ranking filter (e.g., during a bear market when most companies are trending down) then the portfolio moves partially or completely to cash. On average, the portfolio holds around 15% cash.
Expect 1-2 portfolio changes per month on average.
Since 2001, the strategy has generated a Compounded Annual Growth Rate (CAGR) of 27.30% p.a. excluding brokerage and tax. The average holding time is approximately 80 days (57 trading days). The maximum open drawdown (capital loss) was -30.07% in January 2008, which is significantly better than the S&P/ASX 100 Accumulation Index's maximum drawdown of -49.39%.
How does the strategy work?
At its most basic level, the ASX Top 5 uses a custom momentum indicator to identify stocks likely to be in a controlled medium to long-term uptrend. All stocks are then ranked from best to worst. Stocks not rising fast enough are excluded to help protect the portfolio during periods of bad market conditions. If a company’s uptrend has broken, it’s also excluded. The top 5 companies remaining are selected.
Referral Credits (Effective June 2021)
| Referral Type | Length | Reward |
|---|---|---|
| 10 Sign-ups | Per Year | Upgrade to Yearly Supporter Plan |
| Supporter | Monthly | $3 (1 month free) |
| Supporter | Yearly | $5 (2 months free) |
| ASX Top 5 Portfolio | Monthly | $59 (1 month free) |
| ASX Top 5 Portfolio | Yearly | $98 (2 months free) |
Overview
The ASX Top 5 is an aggressive, medium-term momentum strategy applied to ASX 100 companies.The strategy's primary goal is to locate large-cap stocks rising in controlled uptrends. Volatility is avoided; predictable and steady uptrends are preferred.
The portfolio is aggressive and concentrated (maximum of 5 companies). If fewer than 5 companies pass the system's strict ranking filter (e.g., during a bear market when most companies are trending down) then the portfolio moves partially or completely to cash. On average, the portfolio holds around 15% cash.
Expect 1-2 portfolio changes per month on average.
Since 2001, the strategy has generated a Compounded Annual Growth Rate (CAGR) of 27.30% p.a. excluding brokerage and tax. The average holding time is approximately 80 days (57 trading days). The maximum open drawdown (capital loss) was -30.07% in January 2008, which is significantly better than the S&P/ASX 100 Accumulation Index's maximum drawdown of -49.39%.
How does the strategy work?
At its most basic level, the ASX Top 5 uses a custom momentum indicator to identify stocks likely to be in a controlled medium to long-term uptrend. All stocks are then ranked from best to worst. Stocks not rising fast enough are excluded to help protect the portfolio during periods of bad market conditions. If a company’s uptrend has broken, it’s also excluded. The top 5 companies remaining are selected.
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