Fidelity Select Fund Rotation
Author: techtrader007
Creation Date: 3/19/2011 1:28 PM
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techtrader007

#1
I am not a customer of Fidelity. I have some question concerning this strategy.

First of I check this system without using Fidelity sector funds. I change the numberofSymbols
from 1 to 3 and test this for NAS100. The problem it buys only 1 not 3 stocks. My position size was 30%.
Any reason why.
Apart from that in Traders articel suggest to buy only stocks in the best performing sectors.
Is this possible to add this feature or which database vendor do I need that it rotate first in the sector ETF and afterwards it find the Top3 sectors and after then it finds the TOP 3 in the stocks of these sectors.
Thanks for answering my question. I did´n´t find the strategy under Strategy and Trading so I would write my comment there.
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Eugene

#2
QUOTE:
I have some question concerning this strategy.

Whenever you have a question regarding a published strategy, please ask it on the strategy's own forum. To do it, in "Public Strategies" click on the "0 (1...) Topics" link in the "Discussions" column. Here's the direct link for Fidelity Select Sector Fund Rotation System:

0 Topics (<- it's here).

This is how it was designed years ago. Each uploaded strategy has a place to discuss it, and it's extremely easy to connect the discussion with the strategy. Thanks.
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Eugene

#3
Replied there.
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Cone

#4
In defense of users, we haven't made it easy enough to find a Strategy's Discussion. Some ideas:

1. When a Strategy is uploaded, add a new xml element with a link to its discussion page. Wealth-Lab could add a "Discuss" link to the Editor's toolbar and/or the Strategy Explorer's toolbar when 1 Strategy is selected.

2. Although 5 pages of public Strategies is still manageable, it can be difficult to find a particular one; so let's add a search function.

3. We've already requested that Strategy discussions be put in the Most Recent list. The webmaster should have this on his todo list(?)
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Eugene

#5
All great suggestions Robert.

It's not fun at all to direct users to go here and go there but otherwise it will be troublesome for them to find the information when it's not organized.
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rmpwealth

#6
FWIW, I just spent several weeks playing with this and several variations of the Weak-Stock Rotation strategy.

My conclusion was that rotation strategies perform really well during upmarkets; however, they suffer unacceptably (to me) drastic drawdowns during downmarkets. I tried to ameliorate the drawdowns by incorporporating into the strategies various additional Buy criteria (ie.- Buy only if market trend is up, etc.), adding StopLosses to the Sell criteria, adding to the DataSets various Short Funds that I thought would be selected during downmarkets, etc., but I never did resolve the problem. Has anyone else devised a way to ameliorate the severe drawdowns that seem to be a characteristic of pure rotation strategies?
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terencei

#7
however, they suffer unacceptably (to me) drastic drawdowns during downmarkets. Most strategies will work well in upmarkets but all should be backed up by at least some carefully reasoned rules to deal with the unexpected - doing a series of time-frame bracketed back tests will normally expose most of these unexpected events and can be dealt with in an appropriate manner.
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MikeCaron

#8
I implemented a trend following system, http://wl4.wealth-lab.com/cgi-bin/WealthLab.DLL/editsystem?id=51374, that traded either ETFs or Fidelity Select funds. I used a classifier to stay out of similar funds. However, as noted above, works great in up-trending markets but one would not want to be in this strategy when October 2008 hit.

I never figured out a way around it. Volatility increases that engaged a hedge might help, but I never pursued it.

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