Z8 strategy

Good morning all. This is my first post on this forum.

I just launched Z8 strategy. This is the first time that I launched a strategy. I didn't know it before but I just realized that there is no stop order that is done automatically by the strategy.

What happens if the market goes down and I'm not around every day to check what's going on? I feel at risk all the time.

To those who use this strategy, do you use stops? If I trade every 5 weeks, more than one scenario may have occurred on the upside as well as on the downside.

If I sell the stock myself, what will happen when I re-trade in 5 weeks?

Thank you in advance for your answers.

Hi mitch1179, I am using Z9, which is a strategy from the same long-only „portfolio rotation“ class of strategies. I do not use any stop losses.

There are two reasons for that. First, I use the Z9 as it is designed from the authors, and it is designed without stop losses.

Second reason - my understanding of these strategies is, that there are two main edges, that are being exploited. One is the long-term upward bias of equities and bonds, so thats why it is the long-only strategy and why you have to stay in the market to exploit this edge.

And the other edge is that some assets from your Z8/Z9 portfolio have more chance to grow in the next 5-6 weeks, than the other ones. So, you exit a position, only if another asset is chosen by algorithm and you get a proposal to relocate your capital, close/reduce some current positions and open other ones instead. That is why you need to run the script in regular intervals, as suggested by algorithm.

That being said, it does not change the need that you understand the stock market drawdowns and their psychological and monetary impacts to your funds. Especially when you use margin (which by the way I do not). Best and easy way how to handle it and how to learn SIZING of your capital is to read books, like JCL‘s Black Book and Robot Wealth „Embrace The Mayhem“ . Or other books recommended in Zorro portal.

Just trying to help, form my experience, good luck ...

Hi hast29

I just read a lot of information in the black book and on the internet about the Markowitz method. Now I understand why there is no stop order.

For the Z9, I'm almost done reading Gary Antonacci's "Dual momemtun invsting".

I did not know this method. I was very amazed to see all the research there is behind this strategy. It gives you confidence to read books at a high level of professionalism.

I will turn it on shortly, probably with the margin at 2.

Thanks to you. Thanks also to JCL and his team who took the time to create this strategy based on this book.

if you search Dual Momentum in this forum you will find a Z9-like strategy presented by an user. A lot to think about...

Hi MatPed

I don't know why but the search engine in this forum don't work. Do you have the link please? I'm supposed to start Z9 live this afternoon.

Do you use the Z9 strategy? Since a long time or recent? Are your profit aproximatively as supposed?? Probably that you have change the AssetsZ9 for Europe.

Unfortunately I can not use z9. Z9 is based on a fixed rebalancing period of 5 weeks. This will lead to high costs (trading and taxes) in Italy for a non leveraged account.
The dual moment algorithm published by a user grant more flexibility than z8 and z9.

This is the link
https://opserver.de/ubb7/ubbthreads.php?ubb=showflat&Number=481500&Searchpage=1&Main=56545&Words=%2Bdual+%2Bmomentum&Search=true#Post481500

Ciao

What kind of tax laws do you have in Italy that this would be a problem? Is it in any way similar to the German Scholz tax?
https://financial-hacker.com/the-scholz-brake-fixing-germanys-new-1000-trader-tax/

You can not compensate win and loss on ETF or SICAV. You pay a capital gain only on profit: 26%
Z8 and z9, did not take in consideration this.

I do not know anything about German taxes, I already got enough of mine

Ah yes. In the USA, short term capital gains are netted and then taxed on an annual basis, which is much better.