OUR TRADING RETURNS COMPARED OTHER FUNDS
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 U.S. 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 this has 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
The Buy Signal was triggered on the 29th August 2019 and the stock was purchased at $209.45. The stock was held until the 26th February 2020 when the Sell Signal was triggered and the stock was sold at $293.41. This banked a profit of $83.96.
Return on Capital Employed = 40%
Trade 2 – Short
The Sell Short Signal was triggered on the 26th February 2020 and the stock was sold at $293.41. The short position was held until the 6th April 2020 when the Buy to Cover Signal was triggered and the stock was bought at $265.30. This banked a profit of $28.11.
Return on Capital Employed = 9.6%
Trade 3 – Long
The Buy Signal was triggered on the 14th April 2020 and the stock was purchased at $283.30. As of the 28th July 2020 the Sell Signal has not yet been triggered. The stock price is $372.99, which is a gain of $89.69.
Return on Capital employed currently sits at 31%