Trade.com reviews on IPOs investment opportunities

[Nuathris]

ordinary people like us won't be interested in conservative. The size of the capital is not that big. Personally I understand why billionaires or even millionaires choose the old-fashined 10% of yearly returns with limited risks. On the other hand, if you only got a few thousand on account, you normally want to make a bigger stake and forse the action at least in the beginning.

[Deliniel]

I agree, it doesn't look as if they a 'quantity' guys. There are very few investment options available and only two of those are focused on lower timeframes and alternative quant approaches. Others are rather conservative with moderate to small expected returns.

[Nuathris]

These automated strategies are results of a hard work of a group of professional traders and developers. Sometimes it takes years to make them work properly and normally companies like trade.com or hedge funds focus on quality rather than on quality. Some choose the approach 'Trade more shit' , but you can always see that from what they offer.

[Agredritlan]

I wonder how these trading systems are created? And how many of them they create in order to offer new ones to the public once they start yielding profits.

[Deliniel]

I've just noticed the other automated strategy that is available for subscription at trade.com called Iapetus. The stats are only available for 2 years. In 2019 it had a -9% drawdown (with is an all time low of the system) and it's got a 40% return in 2020.

[Arcanebringer]

Well, in case the rule of the other thumb says that doubling the drawdown is actually the worst that can happen - I'm quite ready to accept the risk ))
I'm joking. I'm not investing in this quant algo. Not yet

[Nuathris]

Speaking of drawdowns, you need to keep in mind that they only give you the numbers on historical performance. In case you (or anyone else) plan to invest, make sure you are ok with doubling this number. In other words, make sure you will be ok about having minus 22% on account at some point, because one of investro's rules of a thumb state that the worst is always ahead LOL

[Arcanebringer]

Jeez, Quant results look really impressive! the most interesting thing about it is that impressive returns are combined with only around 11% max drawdown, which is a VERY good number for quantitative strategy. I'd say even 30% drawdown is normally ok for similar strategies. These guys really impress me.

[Gholbizel]

I completely agree with the above. And I also have to note that there is no direct correlation with SNP500 speaking of the discussed algo. Trade.com's quant portfolio performed fine in 2008. While SNP500 experienced 45% drawdown by Feb2009, the algo did +22%.
I think you were mistaken because of the recent years, cause the algo performed pretty much as good as the index itself.

[Agredritlan]

Oh, ok. Personally I don't see anything wrong with algo trading. its probably true that human mind can perceive and analyse market data better than some algo (especially if we speak of experienced pros), yet, machines are definitely better in executions. They don't know fear and don't know tilt.

[Deliniel]

Personally I prefer to stay away from quant methods. This is some kind of a black magic going on there which I can't understand.
Moreover, look, there is a definite correlation with SnP500 there. Just look at the chart there, on the page with description. This is a warning sign IMHO. I wouldn't want to be there in this investment if SNP500 starts another rollercoaster ride down.

[Agredritlan]

Dis you ever consider trade.com diversified portfolio management? Their alternative portfolios look nice, especially the quant portfolio. 13 years of performance with 6% return on average. Not bad as I see it.

[Deliniel]

Yup, tha'ts smth that is shared with the investor. I simply don't get to know the reasoning and methods they use to perform the analysis.

[Agredritlan]

Thanks for the reply! Do you get to know the share of each company in the portfolio?

[Deliniel]

Thanks for the words of support. I actually start thinking that balancing near a zero summ game is not that bad. SO mahy daytraders keep losing money and I don't lose it, and moreover I gain more experience and new ideas.
As for the protfolio. No, I don't think this works exactly like that. From what I see, yeah, they have some industry leader like Johnson&Johnson and AbbVie in the list of portfolio, but there are some top-10 pharmaceutical companies that are not even on the list.