Trade Ideas Blog
Performance: Trade of the Week Portfolio YTD is +13%
Jul 10, 2017
The performance of the Trade Ideas’ Trade of the Week exceeds the SPY: SPDR S&P 500 index by almost 400 basis points for the period up to June 30, 2017. Trade Ideas’ SaaS model powered by A.I. has outperformed our benchmark and other indices since its inception.
In April of 2016 we began our Trade of the Week. This is a weekly analysis of the market performed by our A.I. system to identify potential swing investment opportunities. The report is attainable to anyone from www.trade-ideas.com. A new edition is then published and delivered to your Inbox early each Monday morning. For 2016 the portfolio of ideas published yielded a return of 29%. We decided to do a mid-year update on the ideas Trade Ideas published in 2017.
Returns and other data were calculated using the trigger entry price and closing prices as of June 30, 2017 – the last trading day of the mid-year. (Request a copy of the Trade of the Week performance spreadsheet for June 30 at firstname.lastname@example.org for more detail.)
- Each position was sized with $1000 USD and entered with a pre-determined Reward and Risk Target, the amounts of which were calculated on a ratio of 3:1 respectively. As of 30 June 2017 the resulting portfolio rate of return currently holds at 13%.
- This result compares to the SPY: SPDR S&P 500 Index over the same period of 8.9%.
- 26 selections were made from among equities, indices, and ETFs in the U.S. and Canadian exchanges over the period from 02 January to 30 June, 2017. 15 selections were for gains and 11 were for a loss representing a 58% Win Rate. Among the 26 selections, 8 are currently open positions.
- The average % return of winners stands at 31%; the average % loss at (6%) yielding a Win to Loss Ratio of 5:1.
- In Risk On mode, where a Trade of the Week’s positive performance affects the decision to go beyond Reward targets, the most profitable edition of the Trade of the Week is Weight Watchers (WTW) at +167%. The portfolio return and chart above reflect the Risk On mode.
- In Risk Off mode, original trade plan rules are followed. Reward and Risk targets are strictly enforced. Here the best performer is TrueCar (TRUE) at +52%.
- Market cap of the Trades of the Week ranged from a high of $17B in Freeport-McMoRan Inc (FCX) to a low of $97M in Arotech Corporation (ARTX).
The Trade of the Week is an analysis unlike the daily trading opportunities generated by Trade Ideas’ A.I. powered intraday service. The TOW analysis uses algorithms optimized by machine learning A.I. to look for opportunities on longer timeframes. From the resulting list of candidates each week, a committee of three then selects the most favorable opportunity.
Trade Ideas’ Suite of Resources for Advisors, Institutions
Fund Managers and Advisors must have a plan for leveraging Machine Learning analysis and A.I. technology for clients or risk having such technology used against them. A key part of such a plan is to identify technology that identifies alpha and manages risk; Trade Ideas makes this possible with the Trade Ideas Wealth Professional Suite. Our focus is to give you the best possible Virtual Analyst on the research team powered by A.I. and to protect your valuable intellectual property with our professional services. The task of identifying opportunities from algorithms designed and optimized by A.I. is not as complicated as it’s been currently or in the past. These ideas are meant for any decision making process – or committee. Refer to the chart above to understand what a monthly or quarterly conversation could look like. Trade Ideas Wealth provides the new capabilities for our growing network of Active Management professionals that includes:
- Weekly Trade of the Week newsletter delivered to the Inbox.
- Weekly education webinars of A.I. performance, early sector trends, algorithm settings, and Q&A.
- Access to the configuration and settings of the algorithms selected by the A.I. from its overnight analysis and published before every Market Open.
- Daily morning ‘Huddle’ report on A.I. chosen algorithms and preparations before the Market Open which recaps up to date performance and the previous days’ trades.
- Access to Trade Ideas Quant to create custom algorithms.
From within the Trade Ideas Wealth platform:
- Access to Market News & Analysis room of Trade Ideas enthusiasts engaged in the markets from Open to Close featuring trade ideas across multiple timeframes (short term and intermediate).
- Channel dedicated for Professionals’ current holdings where portfolio as a symbol list can be monitored for pattern recognition.
Advisors, institutions and their clients should agree that if there’s not a plan on using A.I. to achieve returns in 2017 and beyond, others will be using the technology against them to get theirs.
Learn more about Trade Ideas Professional Services.
This article also appears on LinkedIn.