Total Portfolio Return: US +64.40% SG +30.26%

Strategy


DIY Quant trading algorithm aims for abnormal returns. Here we provide a short description of the strategy.

Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend
-Jesse Livermore

In a nutshell, the algorithm is a hybrid strategy comprises of trend following and contrarian trading. It aims to pick trending stocks that have potential for huge returns while riding in the same direction as the market. Winning trades are left to run to achieve even higher profit while losing trades are sold off quickly to keep losses small.

The algorithm also performs overall market and sector analysis to anticipate market/sector movements based on a proprietary component named Market-wide Trend Analysis (MATA for short).  The system will switch between aggressive and defensive mode depending on the trend of the market/sector and adjust the portfolio accordingly once the trend starts to reverse. This provides the system with a good edge as it will always attempt to keep itself on the right side of the market.

Apart from that. it also perform portfolio risk management and position sizing. The idea is not to put all the eggs into one basket to mitigate concentration risk. This ensures survivability, and reduces the risk of ruin.

The system mostly deals with small cap stocks. That is where it can find hidden gems with huge growth potential. Currently the system is focusing on US and Singapore markets and we plan to venture into other countries such as Japan, Hong Kong and UK provided we can raise enough capital.

Some of the System's Best (Real) Trades

US Portfolio  


Name (Ticker)% P/LEntry / Exit
KEMET Corporation (KEM) 370.60% Nov'16 / Sep'17
RADA Electronic Industries (RADA) 79.13% Jun'17 / Nov'17
Nevsun Resources Ltd. (NSU) 61.17% Apr'18 / Sep'18

Singapore Portfolio  


Name (Ticker)% P/LEntry / Exit
AEM Holdings (AWX.SI) 247.16% Dec'16 / May'17
800 Super (5TG.SI) 55.83% Oct'16 / Jul'17
Health Management Intl (588.SI) 49.40% Dec'16 / Feb'17

MATA's recent predictions of the US market direction.

Since the inception of the system in mid 2016, MATA component has successfully anticipated all the major uptrend and downturn. The reason why we decided to start trading live in mid 2016 is because MATA anticipated that it is the start of the bull run after the oil crisis.

Then, in January 2018, MATA warned about an impending market reversal which really happened a few days later. Check out this port for more details. How my system predicted the recent downturn? By looking at the data objectively


Again in August 2018, MATA started warning about another impending downturn coming. True enough, the market turned south in October 2018. Check out this post for more details. Once Again DIYQuant System Predicted the Market Reversal


All these pre-warnings helps to protect the system's portfolio by reducing exposure when market is weakening and also to increase risk appetite when the bull market starts to charge.

Some of the strategies that inspired the algorithm.
  1. How I Made $2000000 In The Stock Market by Nicolas Darvas
  2. The Original Turtle Traders’ Trend Following System

Get Full Access and follow our system's quest for ABNORMAL returns
Performance Join as Member

 Follow our blog on Facebook!

3 comments:

  1. Interesting strategy you have. Mind going more into detail about it, like what do you look for? I'm just starting out in learning more about trading and chanced upon your blog. Thanks!

    ReplyDelete
    Replies
    1. Hello. I currently only trade in Singapore and US market. Most of my trades are on small cap stocks because they have the most potential for growth. The strategy that I am using is essentially a breakout momentum strategy, you may want to check out the pdf below that describe similar kind of strategy. It is where I learnt and got the idea for my current strategy. Hope it will help you in you trading too. Let me know if you have any other questions =)

      http://bigpicture.typepad.com/comments/files/turtlerules.pdf

      Delete
  2. Thank you for sharing such informative, useful and helpful knowledge! This gave me some insights to do better. I would really love to see more updates from you.

    Trading Courses

    ReplyDelete