OUR TRADING RETURNS COMPARED OTHER FUNDS
Backtesting assesses the viability of a trading strategy or pricing model by discovering how it would play out using historiecy data. We analysed our strategy using the last 5 years stock price movement of the stock components that make up the Trillium Capital Index Fund. Using this data we can see when our trigger parameters are met, this in turn gives us what the returns would have been had we traded the strategy.
The table below is an illustration of how our fund would have performed over the past year against other Irish based funds. This data is based on the backtest of the strategy.
Investment opportunities – TRADING METHODOLOGY
Our primary trading strategy is Swing Trading.
This involves buying a stock to capture gains over a short to medium term time period which can range from a few days to several weeks. Swing traders take advantage of the price momentum of a stock.
The fund is a basket of 50+ of the most actively traded US company stocks listed on the Nasdaq stock exchange. Several of them are also listed on the Dow Jones 30 and the S&P 500. The companies are from various industries including technology, health care, industrials, and many others.
We have developed a unique set of technical analysis parameters that we apply to this list to find trading opportunities. Our parameters include looking at the daily charts and have defined buy, sell, and trigger signals. Many of the stocks we hold pay dividends which we see as an added bonus to our returns.
We have developed a unique trading algorithm. It is a Rule based algorithm as opposed to a Model based one. We set the trading parameters and the algorithm uses these to select and execute the trades on a daily basis. We selected these specific parameters based on our shared trading experience.
Our strategy has been back tested extensively and and this confirmed that it is a profitable one.
Investment opportunities – A CASE STUDY
Below is an example of our trading parameters on Apple (AAPL) which is one of the components of the Trillium Capital Index.
Trade 1 – Long
29th August 2019 – Buy Signal Triggered Stock Price $209.45
26th February 2020 -Sell Signal Triggered Stock Price $293.41
Potential Profit $83.96
Potential Return on Capital Employed = 40%
Trade 2 – Short
26th February 2020 – Sell Signal Triggered Stock Price $293.41
6th April 2020 – Buy Signal Triggered Stock Price $265.30
Potential Return on Capital Employed = 9.6%
Trade 3 – Long
14th April 2020 – Buy Signal Triggered Stock Price $283.30
28th July 2020 – Currently No Sell Signal Stock price is $372.99
Potential Profit currently $89.69.
Potential Return on Capital employed currently sits at 31%