Strategy Books are now shareable in Research Groups of Portfolio123.com

+ how to use the Small Cap Index

I shared our three strategy books in our Research Group (which is open to paying subscribers of this blog, please use the same email here and for P123, if I have not added you to the group, please DM me, thank you!):

https://www.portfolio123.com/app/group/348

Here is a Video on how to connect a Live Strategy Book to an “Account” in P123 which can be connected to IB Pro or Tradier:

Strategy Books are now shareable in Research Groups of Portfolio123.com

Another subject. We need to have a word!

I thought long and hard about it, but the temptation was too high to show what can be reached in the small and micro-cap world with smaller accounts (assuming my AI Factor Small Cap models show good OOS Live performance).

The above book, which I share in this blog for paying subscribers, is a micro and small cap model. The liquidity capacity of the book is not comparable to the big cap models I publish here (they scale big time!). My best guess is it has a capacity of about 3 million $.

So be careful with throwing a million dollars into it. Careful with market orders, it will kill the strategy, use at least the midpoint trade algo in IB.

Avoiding slippage in micro caps is an art, if you are not familiar with it there is a learning curve to be climbed: Some stocks you must buy at ask (breakout situations), other stocks use midpoint, other stocks you put in a buy order at the bid (and vice versa on the sell side).

First use case —> use with smaller accounts (25k - 100k or so).

Second Use Case (which can scale much higher): use the stocks as a watchlist and dig deeper fundamentally for longer holding times via:

If the stock is highly ranked here and Maj and his team (they have a great research team!) find a fundamental inflection point, I would be highly interested in the stock (for longer term holdings but always check for up and downgrades from Maj), to put it lightly. If I had more time, this would be my strategy!

Also, if I sense that the model gets overcrowded, I am going to put the monthly subscription fee to 10.000$ ;-) (do not worry, existing subs will keep the price of now!) or spin it out to another substack and limit subscriptions (with priority for existing subsribers of this blog).

So please, please bear with me and use it in a responsible way. Thank you!

Best Regards

Andreas