Topping Off the Reserve Cash | SHARPE INCOME !!

Posted on Aug 7 2017 - 11:53am 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: $4,137.82
Total Sharpe Income Project Return 2016 Forward:  +11.04%
Total Sharpe Income YTD Return: + 3.71 %
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: + 3.40 %
S&P 500 Index YTD Return: + 10.63 %
S&P 500 Index YTD Maximum Draw-down: – 2.61 %


08-07-17-sharpe income returns to date on portfolio real time live

We were paid a dividend in our ‘Trading Segment’, in the form of the SHY dividend.  This has been entered and accounted for on the ‘Diary’ tab of the spreadsheet.  We are also due our TLT dividend.  But that has not yet posted to the various accounts that I manage that holds TLT; so I will wait until the TLT dividends start posting before we actually record it.

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: $853.11
Income Assets Cash: $108.65
Capital Gains Cash: $519.46
Reserve Cash: $225.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
For Simple Reserve Cash: $225.00

We stated last week …

“We’ll just go ahead and say it here: that for this project, that is a percentage we’re 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 we aim for.”

You may have noticed that with the Income Project standing at $4,137.82 and the Reserve Capital standing at $225, we are over that 5% mark.   We’re at about 5.4%.

Actually, we’re going to “top off” the reserve capital for the next few weeks, and push it up to maybe as high 10% or 13% of the total project.   Afterwards, we can begin to focus on other things … 

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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