I think in SA your trades only qualify for CGT if your holding has been longer than 3 years. Obviously selling losers in the first year makes sense in SA as well as anywhere else. In my experience the shares on the JSE that qualify for many of the 1 year rotation systems stay pretty static from year to year, so then there is no need to keep swapping out winners and incur a tax penalty. Depending on your cash situation you could also add newly identified shares that qualify according to your rules to the portfolio, and then sell the slower performers only after 3 years. I can't really think of another way. It does, however, depend to a degree on the current market conditions and the success of your choices, because it would be worth it to swap out a share that has under -performed at, say, 3% growth, for one that will give you 50% growth in a year, even with the tax penalty.