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Historical Performance of the Automated Alerts

In this chapter, we will look at examples of the historical performance of these automated alerts if they are blindly followed. Periodically, we will adding new examples, so be sure to check back.

The graph below shows the compounded growth of $10,000 if only the alerts based on a single strategy on the stock ADSK were taken. Keep in mind that our site provides well over 200 alerts a month for the basket of our stocks. Early exits are taken when it looks like performance of a strategy can be improved if there is an upper limit put on the amount of time a trade will stay open. For some strategies, this helps to both reduce losses and lock in better gains.

Figure 8.1

Or consider the graph below for the stock RFMD again blindly following alerts of a single strategy over time.

Figure 8.2

Now consider the historical performance of the alerts of a single strategy applied to stock BRC

Figure 8.3

The performance shown in the chart above may not look that impressive compared to the earlier examples. However, we must understand that the actual time spent in the market for this strategy of BRC is significantly low. We can see that in the graph below which shows the compounded growth plotted against actual time spent in the market.

Figure 8.4

So in actuality the money was in the market for only close to 25 trading days. With that in mind, the 30% return is indeed impressive.

The strategy with T.R*P.R=5.2 leads to the historical performance shown below for stock ALV.

Figure 8.5

Once again, let us redraw that graph by changing the time axis to show the actual time spent in the market.

Figure 8.6

So this strategy delivers an impressive 50% growth in only about 20 days in the market. Keep in mind that these charts are for a single stock. Our site delivers over 200 round trip alerts across the basket of stocks in a month. Each stock has multiple strategies acting on it. But as we can see from these graphs, even if we are to select just a couple of stocks and pick just one strategy with good odds, our returns over time will be substantial.

Consider the example of ATW next

Figure 8.7

Once again, let us redraw the graph against actual time in market.

Figure 8.8

We can see that there are no separate early exits lines in the above examples. So the automated alerts for the strategy did not need early exits to be applied.

The next example for stock HBAN

Figure 8.9

Figure 8.10

More examples will be added periodically.

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