“Reserve Cash” Allocation Nearly Complete (For Now) | SHARPE INCOME !!

Posted on Jul 31 2017 - 1:33pm 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: $4,115.47
Total Sharpe Income Project Return 2016 Forward:  +11.10%
Total Sharpe Income YTD Return: + 3.65 %
Sharpe Income Total Yield: + 4.63 %
Sharpe Income YTD Paid Yield on Cost: + 1.64 %
Total Sharpe Income YTD Maximum Draw-down: – 1.34 %
iShares Barclay’s IEF YTD Return: + 2.80 %
S&P 500 Index YTD Return: + 10.42 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %

We were paid a dividend in our ‘Trading Segment’, in the form of the QQQ dividend.  This has been entered and accounted for on the ‘Diary’ tab of the spreadsheet.

We are ‘shoring up’ our ‘reserve cash’ as of late, and therefore we are going to place 100% of this weeks ‘capital deposit’ in the category for ‘Reserve Cash’.  Once again … we are not segmenting the capital to cash for ‘Income Asset’ purchases in the future.  We are not segmenting it to cash for future ‘Capital Gains’ Trades.  We are simply sticking that capital in ‘Reserve Cash’ … where it will stay.

Thus, the cash is reserved thusly …

Total Cash: $827.76
Income Assets Cash: $108.65
Capital Gains Cash: $519.11
Reserve Cash: $200.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
For Simple Reserve Cash: $200.00

What we have done over the last several weeks, is build up our ‘reserve cash’ to about 5% of the account size.  I’ll just go ahead and say it here: that for this project, that is a percentage I’m going to continually ‘shoot for’ when it comes to reserve cash as it relates to the percentage weight to the project.  Sometimes, we’ll have a little more than 5%.  Sometimes a ‘little less’ than 5%.  But that 5% number is something I am aim for.

We may have just a couple of more similar contributions like this in the future, before we shift our focus in the project to work on something else.

The project as a whole continues to do well …


Nothing left to say, as we simply grinding the whole project ahead, further still

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, and remember that we are currently running a promotion on the short-term courses.

We continue the Sharpe Income project with this next entry.

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