Dear investors,
The investment year 2021 is now behind us. A time to look back and forward. Reflecting on what went well and what needs to be improved. Because yes, our investment method is not flawless either. That applies to all investment methods, by the way. And that is what this column is about.
Because every investment method - with the chance of a higher return than the savings account - is more risky. Every now and then a dent is made in the accumulated capital. And for many people, the psychology of setbacks takes over... stopping and doing or following something else. Because of this phenomenon, the use of trading systems with trading rules is very important. So that we turn off our feelings and continue to act consistently according to our trading plan. Unfortunately, not many people can do that. Talk about the psychology of investing. And patience...
We also had to be patient with our WS-907 system. This is because a number of important changes were made in mid-2020. You have read about this in a previous column. But... "the proof of the pudding is in the eating". Will the result improve? Can interim losses (called drawdown or DD) be further reduced? The results for 2021 show that this is possible. With a return of +77.30%, the WS-907 system performed very well. WS-908 also did very well with a return of +19.29%. With even a new All Time High on 31 December 2021. The interim (unavoidable) losses have also decreased further.
Of course, there are also periods when the system performs less well. Or that a number of small losses occur in succession. Is that a bad thing? No, it is not a problem, but it is a pity of course. But this is part of the game! And afterwards, everyone knows better. Including us. But what use is that? Because showing hypothetical results is oh so easy. Saying in hindsight that what HAD to be done would have been better. Practice, however, is more recalcitrant. Every investor knows that. That is why only controlled and really executed trades count. Determining in hindsight what you should have done, is called 'backtesting'. So always pay attention to whether claimed results have actually been achieved. This is the case with WS-907 and WS-908 .
In our last system update you could read that we continuously test our trading systems and improve them where possible. These improvements have led to less significant interim losses. This will also be our focus in 2022. We cannot give any guarantees, but a commitment to make interim losses smaller and profits larger.
Now the question: "is good also good enough?" You may answer the question whether our systems are good enough. Our loyal followers know the answer. Do you? With an average return over the past 5 years of +30% per year for both systems, you certainly don't need to be ashamed.
It only remains for us to wish you a successful investment year. And if you would like to follow one of our systems, you are of course welcome to do so
Sincerely,
The team of Wallstreet-Spirit