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Aelia Capitalina - RSL DAX

Dieter Nagel

 | DieterNagel

Last Login: 05/29/2025


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-9.2%
since 11/25/2016

-0.9%
Ø-Perf. per year

-4.5%
Performance (1yr)

18.9%
Volatility (1yr)

0.0
Return/Risk



Portfolio chart

Details
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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.

Master data

Symbol

WFACRSLNAS

Date created

11/25/2016

Index level

-

High watermark

102.0

Investment Universe

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For the composition of the virtual portfolio click here.