Dogs of the Dow Positions - Simulation
Author: RGM
Creation Date: 9/15/2008 12:24 PM
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RGM

#1
I want to run the simulation of the Dogs of the Dow strategy posted in the new WL version but I want to restrict the simulation to take a single position in a security at a time. The current code permits multiple positions when you use the portfolio simulation with a percent of the portfolio as the position method which results in multiple positions in the same security in a particular year and other securities which don't get purchased because the portfolio has been all committed. Thanks Greg
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Cone

#2
As the instructions indicate in the Strategy Summary, you need to select 10% sizing to trade 10 (default) Positions. Use the "Dogs" slider to select 1 Positions, but more importantly, bump the Position size up to 99% or 100%, if that's your idea. Of course, days like today in the stock market show that even "Blue chips" like AIG can fall precipitously.
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RGM

#3
I tried this suggestion and still ended up with multiple purchases of the same security in the same period. What I wanted is to purchase the 10 dogs, each with a position weighting of 10% of the portfolio(for a total of 100% of the portfolio spread across an equal dollar weighting of each dog each period).
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Cone

#4
I don't understand the problem then. If you use the default "10 Dogs" parameter setting and select 10% Equity sizing, you'll get only 1 purchase of each of the 10 dogs each year. That's the design, so it cannot work any other way.

Make sure that you read all of the "Usage Notes" on the Strategy Summary page.