Aelia Capitalina - RSL DAX

DieterNagel

Performance

  • -17.8 %
    since 2016-11-25
  • +12.9 %
    1 Year
  • -3.9 %
    Ø-Performance per year
All fees have already been deducted

Risk

  • -54.9 %
    Maximum loss (to date)
  • -
    Risk factor
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Trading Idea

General strategy.
The main idea is to follow trendy stocks from the DAX, via the
relative strength approach by Robert A. Levy. The approach has its strength in times when the DAX moves sideways and upwards.

Implementation
Once, at the end of the week the RSL is used to calculate the top 7 trending stocks. Once a company drops out of the top 7, it will be converted into cash. The money will then be allocated among the new entries of the Top 7.
The last quoted share price will be divided by the average of the stock price of the last 40 trading days ( ~2 months).

Risk:
The risk-reward ratio in this approach is quite high, especially in bearish times the approach has its flaws and the portfolio will perform worse than the benchmark.
Also, the RSL is a backward looking approach and can certainly not guarantee a higher stock price after initial investment.

Opportunity:
Market participants need time to digest investment information and decide accordingly.
This approach comes almost entirely standardised and without personal sentiment for particular investment titles . However, once an underlying made the cut for the top 7, it might be substituted with a derivative of it.
It is believed, that the DAX has enough potential for this rather quick decision approach. In the best case scenario, a stock soars for several weeks or months and the portfolio participates in that.

Goal:
Goal is to outperform the NASDAQ/ DAX index.

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Master data

Symbol
WFACRSLNAS
Date created
2016-11-25
Index level
High watermark
92.4

Rules

wikifolio labels

Investment Universe

Trader

Dieter Nagel
Registered since 2013-01-12