Dear investors,
August was a fractionally lower month for the AEX, with the index down 0.22%.
RVM Strategy was +0.63%, RVM Retirement +0.58%, and RVM Analysis +0.97%. The traditional systems therefore performed slightly better than the index, with RVM Analysis performing even better.
RVM ANALYSIS BEST PERFORMANCE IN AUGUST
RVM Analysis was positive on several fronts. Active trading was profitable in terms of closed positions, and longer-term positions also performed relatively well in August.
If there are larger portfolios with more or less fixed positions, there will always be underlying values that perform better than others, which is why the results of RVM Analysis will continue to fluctuate on a monthly basis.
There were also some downsides in August. For example, we narrowly missed a good exit on our target price positions. That's unfortunate, but these things happen. The higher target price remains valid for this specific position, and at RVM Analysis we will continue to follow the algorithm in new trading periods. If higher target prices reappear for an underlying asset, additional purchases can be made at better prices.
RVM STRATEGY IN AUGUST
August was a crazy month, with a kind of flash crash on August 5. RVM Strategy had no problems with this, but the system also has the potential to profit significantly from such huge declines. Unfortunately, the algorithm did not give the right signal for this. It was a close call, but that's how it goes sometimes.
The system continued to perform adequately, with no issues to report.
RVM RETIREMENT IN AUGUST
Some of the positions here are the same as those in the RVM Strategy, but there are also fixed interests, which resulted in a fractionally lower return than that of the short-term momentum strategy. That is why Retirement had a fractionally lower return than Strategy in August.
OUTLOOK FOR SEPTEMBER AND BEYOND IN 2024
September is currently (September 17) a negative month, but contrary to our expectations, the decline at the start of the month has not (yet) continued. Our main scenario for the AEX remains positive for the long term, but our algorithm has also generated significantly lower price targets. We have seen this before, which makes the trend forecast highly uncertain for the coming period.
Anyway, as always, we rely on what the algorithm dictates on different timeframes. And we stick to the trading rules.
SUBSCRIBE TO OUR SYSTEMS; MANY HAVE GONE BEFORE YOU
If you are not yet a follower of RVM Strategy, RVM Retirement, or RVM Analysis, you are most welcome to join us!
Most investors who ever decided to follow have never left.
Sincerely,
On behalf of Van Megen Systematic Trading,
Ruud van Megen