Here is a summary of the Basket of Income Stocks that I sent out to the email list on April 3rd. As you can see, in addition to the approximately 1% per month in dividends, the basket is up an additional 3.25% in less then one month.
I put a hypothetical $3,000 into each of these ten stocks at the open on April 5, 2010. These stocks are all using a low-volatility ATR stop, about half the volatility I use as a default on the other stocks. That has resulted in a more stable trading environment, much fewer trades over the course of the year, albeit at the cost of some additional price slippage on entries and exits. I am also using only Weekly charts, which in and of itself reduces trading. So far, this "more patience, less trading" approach has been niecly profitable and a very easy model to manage.
Will this technique ultimately migrate into the entire trend following model?