Innovating caps (3); macroeconomics and sector bets; accomodating the style.
Caps has been build with a stockpicking, buy and hold investment strategy in mind. That is the TMF-bias. However, Caps has generated a lot of other, different (investing? gameplaying?) strategies as well. I am aware of four others -there are probably more out there.(Any suggestions, please name and describe them!)Red thumbing overvalued stocks; as a speciality within that redthumbing pumpanddump stocks; greenthumbing and/or redthumbing within a certain sector based on intimate knowledge of the industry; macroeconomic reasoning leading to red and or green sectorbets.
I have often read comments of players who complain that certain strategies that work in caps would not work in RealLive. And that therefore those strategies in a way "dont count". I disagree. I believe every winning strategy counts. And that is not because i see Caps as a game. (Even though it is a game as well, of course.) I see Caps as information producing device. And strategies that do not work in RL investing can and actually do produce highly usefull information that can and should be used when investing in RL. Its the information harvest, that makes Caps so worthwhile.
In this and the next few posts i want to concentrate on one strategy in particular; macroeconomic reasoning and sectorbets. I want to make suggestions that would accomodate the execution of that strategy within Caps and suggestions that would maximize the usefull information to be harvested from the use of the strategy.
Lets begin with a few suggestion for a better accomodation of the style.
1) Making sectorbets usually means greenthumbing and redthumbing large amounts of stocks. it also means retiring a large amounts of stocks at once ..if you think that a sector will no longer act in accordance with your bet. That retiring of a large amount of stocks is at the moment within caps very tedious. You have to do it one by one.
!1: Make is possible to end groups of picks in one go.
2) The tags are not as usefull as they could be. They would be more usefull if they would function as an add-on to the traditional industrygroup classification of stocks. Instead many tags mimic industry groups fuzzy.
!2: Automatically generate a tag to go with every stock that places it in the traditional industrygroups. That will stimulate usefull player generated tags.
3) The sector tab is not as usefull as it could be. To make it more usefull it should have a three tier structure. One page with very large sectors (All financials for example, all commodities, all industrials etc.) Within every large sector it should be possible to open up the finer structure of the groups. Thirdly it should be possible to open up all groups atonce. Important is that we should be able not only to see the top five, but all our sectorresults by opening the pages up to a full page.
!3:)Tier the sectortab. Make it so that it is possible to open up a full page with al the results.