Tackle Today: Portfolio Design in Action | Tackle Trading: The #1 rated trading education platform

Tackle Today: Portfolio Design in Action

Tackle Today Portfolio Design in Action min

An Insightful Case Study.

Traders,

Today’s chart expands on yesterday’s by detailing an actual portfolio design. Let’s break it down and see what best practices we can discover. 

First, the account value is $100k and split into four buckets. 70% is in cash flow, and the remaining 30% is split evenly between growth, speculation, and cash. The reasoning for the heavy allocation to cash flow is two-fold. First, covered calls (labeled Tackle 25 in the schematic below) are capital-intensive and thus require a more significant portion of the portfolio. Second, we’re assuming this trader has a greater degree of confidence in cash flow systems. Therefore, it is logical that she puts more money into this area of the portfolio.

Second, by breaking down each system into individual positions, we can better understand the risk rules that govern the portfolio. For instance, there are three Tackle 25 positions, each accounting for 20% of the account value. That’s a relatively large amount in a single trade, so I assume these are more conservative stocks such as WMT and AAPL. It’d be even better if they were ETFs such as IWM or EEM. By comparison, note how small the speculation sizing is at 5%. 

Third, the 10% in cash could be for many reasons. Maybe this trader finds that deploying 100% of the capital creates uncomfortable portfolio volatility or exposure that exceeds her overall risk limits. Or, perhaps they always want some cash available for hedging and adjustments. It could also be “just-in-case” capital to be used for a rare opportunity. 


🛑 Upcoming Webinar › Portfolio Design for Beginners: How to Design your Trading & Investing Portfolio | Dec 20th at 8:30 PM EST

Join Tackle Trading in this upcoming Trading For Beginners webinar on the basics of Portfolio Design and Delta Weighting for traders and investors alike.

Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Tim goes LIVE.


Chart of the Day:  Detailed Portfolio Design

chart2 1

Here’s is a filled-out version of yesterday’s schematic. What can you learn from this example?


Video of the day: Queen’s Court: How to Manage your Trading Account During the Holidays

Coach Emily asks Coach Tim for advice on how to manage her trading account while she’s busy during the Holidays in this Queen’s Court segment.


Today’s line up

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode where Coaches Mark Justice and Tyler Craig talked about Best Practices for a Messy Market or would like to watch it again, check it out in the video below.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Trade Masters 7:00 PM EST

Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.


Trading Justice Podcast

Trading Justice 455: Daily Trading Routines

In this episode, Coach Tyler Craig teaches how he approaches his daily trading routine. Building a daily trading routine can help you make your approach more consistent and structured, follow your rules, and increase the effectiveness of the time you spend in the markets. Listen in to this week’s feature to learn how Tyler approaches his, and get some tips and tricks that can help you build your own daily routine. 

Listen to the episode in the player below:

https://open.spotify.com/episode/6Ab56jQijNo61miSFmLt0t?si=f7-BLaB5QUqGlkxX80Q-vA

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Share this

X
Facebook
LinkedIn
Reddit
Pinterest
Telegram
WhatsApp

More Insights

Join the #1 Rated Trading Education Platform

Learn to generate monthly cash flow from the financial markets and how to grow long-term lasting wealth. Tackle Trading is an amazing online community for active traders that is led by seasoned market professionals. Tap into the power of Tackle Trading’s proven trading system and learn how easy it is to make money with the proper coaching and education.

8,800+

Members

100+

Reviews

Ready to take your trading to the next level?

Get in touch today and receive a FREE complimentary consultation.

Let us help you start trading!

Our Pro Membership gives you the tools to tackle all your trading obstacles.

Register for the Master Trader Live Workshop and get the First 15 Days on Us

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.