No. of Recommendations: 0
It would take extra work for 1.4% added CAGR. Probably not worth the effort for me but for people doing automated trading it would be.
Over time an added 1.4% compounds to a big number; Wall Street heads have rolled for less than 1.4%If the GTR1 backtests are right, we are talking about a screen that has long-term CAGR ranging from 22.9% to 26.8%.
Right there, that's a lot more than the S&P500's ~11.5%. So bumping that by 1.4% doesn't seem that big of a deal.
GTR1 for equal-weight SP500, 252 day hold is average 12.3% CAGR.
I am
highly doubtful that this 22%+ CAGR is realistic going forward, because if true why hasn't it been arbitraged away? If Wall Street would kill for an extra 1.4% what would they do for an extra 10%?
"How often does this happen?"
Starting rank when held Frequency of early-sale trigger before next rebalance
#1 stock 6.8%
Top 5 holdings overall 11.9%
Top 10 holdings overall 14.8%
So best ranked stocks it is not very common.Probably not worth it if it takes a lot of daily effort. It's just gilding the lily.
Top 10HTD12 shows avg CAGR 24.5% with AT 2.5
Top 5HTD12 shows 27.4%, with AT 1.8
Top 5HTD10 shows 27.1%, with AT 2.0
Top 5HTD15 shows 26.2%, with AT 1.6
Top 5HTD7 shows 25.8%, with AT 2.6
(I'm gonna have to look closely at that 5HTD12.)
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Here are a couple of top 10 lists, about a year apart.
Two things stand out.
There is a huge turnover in the top 10. There is a quick dropoff in the top ~5 and the dropoff flattens out after ~#6.
The first shows why this needs to be a monthly or bi-monthly screen.
The seconds shows why a large(ish) HTD works okay.
5/11/26 Ticker Perf Year
1 SNDK 4048.26%
2 WDC 1073.30%
3 MU 811.36%
4 STX 768.04%
5 AMD 348.16%
6 LRCX 295.24%
7 AMAT 185.64%
8 MRVL 181.05%
9 KLAC 168.82%
10 GOOGL 158.31%
6/19/25 Ticker Perf Year
1 APP 344.23%
2 AXON 163.67%
3 MSTR 146.75%
4 DASH 96.86%
5 NFLX 82.60%
6 GILD 66.00%
7 FTNT 65.88%
8 ZS 65.79%
9 SHOP 56.62%
10 MELI 51.87%
