2018 has been a major challenge for many investors and traders. The DAX (R) index has lost nearly 20% on an annual basis. The U.S. Indexes have started to decline significantly from Oct. 2018. It was an up an down with a tremendous of volatility to the end of the year. For many investors with a buy and hold strategy or a strategy of exchange traded funds, this year was not a perfect year. Investors missed the chance of selectively picking and trading stocks. Traderama used twelve Trading Algos in 2018. Below, we will present our full-year results per algo trading package for 2018.
The most important first.
All three algos have recorded a plus each of the four trade packages Germany 30, US 30, US 100 and US Tech 100. The best algo-and that was to be expected-was the SELECT Algo in 2018. He has a cum. trading profit (%) of almost 100% with only 117 trades across the stock packages Germany 30, US 30, US 100 and US Tech 100. This means that if each of the 117 trades had been traded with a volume of 10,000 Euro, one would have realized about 10,000 Euro (before cost) in 2018 with the SELECT strategy on the four trading packages.
If one drives the analysis of the trades related to the stock packages, a very differentiated picture also emerges. The highest profit was achieved in the US Tech 100 share package and at the same time also the best ratio between profit and number of trades. The second best package was the Germany 30 packages. The packages US 100 and US 30 have underperformed this year. Many good profits in the Q4 have been wiped out here.
Below we have presented every single combination of algo strategy and share package. As can be seen, numerous algo trade packages have finalized the year with a positiv result. Only four show a negative result for the difficult year 2018.
The comparison per share package is also interesting. Our three Germany 30 packages delivered different results in 2018. The ULTRA Germany 30 package has achieved an overall result of approximately 53% cum. trading profit (%) with 52 trades. Therefore, the average trading profit (%)/trade was about 1%.
We achieved the absolute highest trading profit (%) with 489 trades in the US Tech 100 share package. MAX, ULTRA and SELECT together have achieved about 280% cum. trading profit (%) together. Compared to the US 100 packages (which also contain 100 shares), the three algos achieved a significant outperformance. In particular, the ULTRA strategy has reduced the overall performance of the US 100 packages in the US 100 package.
A comparison of the two “30” packages (Germany 30 and US 30) is also worthwhile. The three stock packages MAX Germany 30, ULTRA Germany 30 and SELECT Germany 30 have proven to be a successful combination for trading the 30 DAX (R) values, while at the same combination in the US 30 market we have only a small increase of about 8% cum. trading profit at an almost equal number of trades.
Not only the annual results, but also the development of the monthly results are important to us. Below, you can select any algo strategy for 2018 and look at the monthly developement over the year.