Dear Investors,
Our loyal followers already know this, of course. The WS-907 system - which trades with AEX Futures - has reached a new all time high! With a nice profit of €1,755, the old record from February 2020 was broken on August 4. So after the unsuccessful attempt in December 2021, it is now party time, although we had to wait a long time for it. But patience will be rewarded!
There is no denying that the first six months of 2022 have been disappointing. A performance of -22% is not something to be proud of. But after the exceptionally good year 2021 (+77.3%) , expectations for this year were high. Perhaps too high...
And so it turned out. The stock market environment turned into an erratic one with (almost daily) alternating large price jumps. Geopolitical tensions, high inflation, corona and nervous investors determined the changing sentiment in the stock market. Our trend trading system obviously had great difficulty with this. But in addition, we also know that other systems that are short on time did perform well. More on that later...
Since mid-July, we have seen more clear trend movements. Less alternating large turnovers, but movements that continue for longer periods of time. So we see this directly in the performance of the WS-907 system. Now you may also be wondering if the system has undergone any changes. A good question. The answer to that is yes. We have made minor adjustments. For one thing, these have to do with the time window in which we analyze price movement. Earlier, the input for that was mainly on a daily basis. Nowadays it is on a lower timeframe. So you could say that we are playing closer to the ball. On the other hand, that is the optimization of the Stoploss. Further improvements can be expected there.
In terms of geopolitical developments and inflation, it will remain unsettled for now. The question is what the market has already priced in. But as you know, the markets are 6 to 9 months ahead of the real economy. And the midterm elections in the U.S. are also going to affect the stock market.
For our trading systems, a less erratic stock market is desirable. That seems to have been somewhat the case now since mid-June. But if the stock market does turn into a bouncing ball again? Then we are prepared with the adjustments made. But perhaps by then you might consider a new system as well. A system besides WS-907 or WS-908 that is even shorter on the ball. With the premise that many small gains add up to one big one. But of course with the knowledge and experience from WS-907 and WS-908. To be continued...!
On behalf of the team at Wallstreet-Spirit
Martinus van Dolder