SHARPE INCOME … Even Steven

Posted on Mar 28 2016 - 3:17pm 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 $500. All in an effort to help out the small retail investor understand the importance of growing an income account, as opposed to a trading account. The following numbers are taken from our PDF that is attached below.   Remember that the numbers are computed off of Friday’s close …

Total Sharpe Income Balance: $2,063.29
Total Sharpe Income YTD Return: – 0.59 %
Sharpe Income YTD Yield: + 0.30 %
Total Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: + 3.70 %
S&P 500 Index YTD Return: – 0.39 %

House-Keeping / Maintenance
This weeks entire capital deposit is placed in our “dry powder” category.  Simply put, capital we keep on hand that we can use in any aspect of the project in the future.  So our cash on hand is reserved thusly

sharpe-trade-free-income-project-cash-reservations-03-28-2016

Our Income Assets overcame the S&P 500 Index last week, and moved up to the meet the returns of IEF.

However, we’ve had to suffer more in the way of drawdown performance to achieve that …

Sharpe Income Income Assets Performance
2016 YTD
sharpe-trade-free-income-project-income-assets-03-28-2016

Our Capital Gains Strategy thus far for 2016 is neck and neck in terms of BPS with the S&P 500 Index.

But it is destroying the Index in terms of drawdown performance  …

Sharpe Income Capital Gains Performance
2016 YTD
sharpe-trade-free-income-project-capital gains-03-28-2016

So the net-net result?  Is that when you add both together, we have beat the S&P 500 Index this year both in terms of drawdown, volatility and in terms of performance.  Pretty nice.  

Sharpe Income Total Project Performance
2016 YTD

sharpe-trade-free-income-project-total-2016-project-to-date-03-28-2016

Our goal, is that as we move forward in time this effect will become more pronounced …

Moving Forward
We will continue to add the weekly capital deposit to purchase either the ‘Income Assets’, the ‘Capital Gains’ strategy, or simply place the cash in the form of ‘Dry-power’.   While doing so, we monitor the performance of each piece, and the strategy as a whole.

When we can buy more income for this account, we will do so, and raise our monthly income.

And we will continue to aim for a place that at worst … we tend to ‘even out’ …

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.

We continue the Sharpe Income project with this next entry.

The Sharpe Income PDF breakdown for Week 70 can be found here (numbers computed off of Friday’s close) …

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