Great Income Performance During Emergencies | SHARPE INCOME !!!

Posted on Oct 9 2017 - 12:35pm by Sharpe Trade

The original Sharpe Income post that explains this project can be found here.

The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.

We continue the discussion from the last entry.


We began this project with only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, understand the importance of growing an income account, as opposed to a trading account. Remember that these numbers are computed off of Friday’s close and are updated each week. It’s live … as it happens …

Total Sharpe Income Balance: $4,466.07
Total Sharpe Income Project Return 2016 Forward:  + 13.48 %
Total Sharpe Income YTD Return: + 6.03 %
Sharpe Income Total Yield: + 5.37 %
Sharpe Income YTD Paid Yield on Cost: + 2.38 %
Total Sharpe Income YTD Maximum Draw-down: – 1.53 %
iShares Barclay’s IEF YTD Return: + 2.60 %
iShares Barclay’s IEF Total Yield: + 4.58 %
S&P 500 Index YTD Return: + 13.78 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %

A host of dividends were paid in the last week, as we were busy scurring about, during our life emergency.  Those dividends came in … right as rain.

For our ‘Income Assets’ paid the PFF dividend.   This raises the yield of our Income Assets up to +5.37%.  Far beyond the +4.58% dividend paid by the benchmark 7-10 Year Bond ETF of IEF.  Dividends were also paid in the ‘Trading Segment’ by both TLT and SHY.  But remember that we do not count the TLT and SHY dividends as part of the yield on Income Assets.  The ‘Trading Segment’ is viewed as completely separate, but ’embedded’ entity, within the project

And the project continues to do well.  The projects benchmark of IEF has returned +3.60%, whereas the the project itself, en totum, has returned +13.48%.

sharpe-income-10-9-17-total-project return

Not too bad for a project built upon the concept of income.

Again … we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’ but it is ‘segmented’ or ‘earmarked’ or ‘reserved’ for the cash we will put towards the embedded ‘capital gains’ or ‘trading strategy’ that is within the project.  The next time we ‘re-balance’ that section of the project, we will then pour what we have saved up on the side, into said ‘trading’ segment of the project.  

Thus, the cash in the project is reserved thusly …

Total Cash: $1,096.15
Income Assets Cash: $122.36
Capital Gains Cash: $523.79
Reserve Cash: $450.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $150.00
For Simple Reserve Cash: $300.00

So we continue forward.  Recording great performance, and collecting our dividends

The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.  

The supplemental information on the forums of the Short-Term Trading Course describes the process behind the Sharpe Income project.

We continue the Sharpe Income project with this next entry.

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