Computed Pie allocation strategies 🤖

Hello fellow investors :wave:

I’m starting playing around in ways of calculating “improved” distribution of the stocks within a Pie.

The simplest way is of course just allocated all stocks with the same %, so if you have a Pie with 20 stocks, each of them will have 5%… if you add a new stock… all stocks will have 4,76% (one probably will have 4,77% to round up 100%).

That’s easy, you can dot it using the computer’s calculator.

Some strategies that I want to play around:
1 - Calculate the allocation based on dividend yield
Given a number of stocks, it will sort them by the dividend yield and will calculate the allocation of each of them based on the overall “weight” of the yield.

2 - Variations of the strategy 1
Be able to use the current 52 week % as a parameter to give more “weight” to stocks closer to 52 week high or low.

3 - Past performance
Use the performance result of N years to distribute the stocks within a Pie.

4 - Rating based calculation (suggested by EquityInvestor)
Given a list of stocks, rated from 1 to 5, calculate the distribution based on that.

It’s mostly by curiosity, I probably will never use the raw result of this to my own Pies, but I have interest to know how will be some distributions given some different strategies.

Do you use any “data driven” strategy?

What another strategies do you think that could be interesting?


ps1: it would be available online somewhere.
ps2: I still don’t have an API to use for some of the data needed.


I don’t know if it is of interest to you, but I use a different system for my main pie:

  1. I research each stock and I evaluate it, decide whether it is worth investing.
  2. If it worth investing I give it a score from 1 to 5. Usually companies with a low score are also companies that I have researched less in depth.
  3. Once I have gone through all the companies, I convert the results into a percentage weighting to 1 decimal place (accuracy of pies).
  4. I adjust selected values to ensure that after the rounding the total % is equal to 100.

Note: The minimum investment has to be at least 0.5% in the current pie system. The issue is that if you have too many companies a value of 1, your minimum may be less than this.

For other pies, for example for the pie I intend to create following companies from 2 Tech ETFs, I allocated a base amount to each and a bespoke amount. The process I followed was the following:

  1. Lets say for the purpose of the example that there were 50 companies that were available on T212. I allocated a base amount of 1% to each.
  2. I then went through the list and I allocated a result of 0, 1, or 2 to each company based on some quick research (business model + financials + awareness).
  3. I adjusted the results to make sure they added to 50 (%). This is now the “bespoke” percentage.
  4. I then added this 50% (bespoke percentage) to the initial base percentage to have the final weighting of each stock.
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This is somehow similar to what I do as well… so yes, I will add another option to give a rating for all the stocks and then calculate the allocation based on that.

Thanks for the suggestion :wink:

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1 and 4 are done :white_check_mark:

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Where do you get the current forecast or the latest dividend yield from?
Is it possible to get it using Google Sheets?

Not getting from anywhere yet, I’m developing the calculation logic first, providing a cvs file with data… after that I will grab online data.

But probably to release a first version it may work with a csv upload only, since it’s very simple to get the dividend yield on google sheets, apple numbers.

I may ask @Finki for a API key :see_no_evil:

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Let me know what you need
Sure I can provide