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Investment Strategies / Mechanical Investing❤
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Author: rayvt ✧  😊 😞
Number: of 4356 
Subject: Re: Pure RS screen
Date: 09/21/2025 12:01 PM
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No. of Recommendations: 6
obviously I meant "get long term US capital gains tax rates"; with that benefit your real return shoots up if you are trading in a taxable account.

Best to do this type of frequent trading in an IRA or ROTH.


There is a saying "Don't let the tax tail overrule your return dog."

Running the same GTR backtests, Sp500 rrs(1,252) top 10, HTD 12, for 20 days and same for 252 days,
top 10 is CAGR 16.0% vs. 13.8%
Top 5 is CAGR 19.7% vs. 14.1%

Nasdaq100,
top 10 23.6% vs. 14.5%


LTCG tax rate is 15%

Sort term rate is same as ordinary income rate, generally for most of us, 22% or 24%.
12% if you are broke. But broke people don't generally invest. ;-)

So, which is better? 15% tax on 13.8% or 22% tax on 16.0%.


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