The objective of this speculative portfolio is to achieve a higher profit (return) at lower risk (volatility) than the benchmark HDAX (simplified DAX + MDAX + TecDAX) in the long term by trading in stocks with a consistent application of the “Modern Portfolio Theory”. The portfolio which promises the best possible return (profit) with a desired limited portfolio risk of about 15% to about 25% a year is to be calculated from a database with stocks from the DAX, MDAX, TecDAX, SDAX, other stocks Germany and from the EUROSTOXX50 across all industries. The basis for calculations are to be the closing stock prices (more specifically the returns) of the respective past 53 weeks. Using the same method and with the then new stock prices, the best possible portfolio can be calculated a few weeks later and stocks in the Mawero virtual portfolio can be adjusted accordingly. In the event of an unfavorable market situation as is to become apparent from the calculation of an indicator, all securities of the Mawero virtual portfolio may be sold and the proceeds held as cash position or in a money-market fund in the Mawero virtual portfolio. The basis of the Mawero strategy is the intention to make the entire stock selection for a portfolio exclusively on the basis of algorithms and mathematical calculations. The human being with their experience-based, subjective feeling is not to play a role in this strategy. The portfolio generally includes stocks, money market funds and cash, no short sales, no leverage. Thus, artificially high risks are to be avoided.
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