European Stock Basket- currently ranked 6th on C2

Trading and Markets
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European Stock Basket is currently ranked 6th out of all of the strategies on C2.

I’d be interested in non biased views/critiques on this strategy, if anyone has 5 minutes.

I think it is one hell of a strategy, but I’m slightly biased- I assisted bringing this team onto C2. Therefore my view isn’t a completely neutral one.

However, here are the stats:

Return so far- over 130%.
My views- When I see a strategy with this type of return, I generally give it some space to breathe whilst I study their risk/volatility etc. This brings me onto the worst case drawdown: around 13%.

Drawdown- 13%. I think it is impossible to maintain this risk to reward ratio of a 10% reward for every 1% risked. However, even at half of these levels, this is still one hell of a strategy.

Markets- Predominantly European Index Trades (CAC, DAX and FTSE). Widely traded, liquid investments. A tick from me.

Market direction- Anyone can make money on an appreciating market. However, this strategy also has a fair proportion of short sell trades. Another tick for me.

Sharpe Ratio- above 4. Again, I think this is almost impossible to maintain longer term, but generally I’d look for a sharpe ratio of 1.5 or above, so it ticks this box for me, and has room to drop it’s current performance level.

Leverage- Again, large returns often equate to large leverage. The flip side of this- LARGE LEVERAGE has the potential TO BLOW UP. This strategy DOESN’T HAVE THAT. Average lev of 2.5, and a top end of 7.5. A VERY IMPORTANT TICK FROM ME.

Guys/girls- I could go through a number of other statistics, but I’m interested in any other critiques of this strategy.

I have some of my capital following this, and I can see it has already collected over 1m USD of capital following it, in a short space of time.

If anyone who is experienced, has a track record of success trading or choosing strategies has a view on this- I’d love to hear it. There are clearly some wise and experienced people out there, so let me know if you have a view.

In my opinion, it’s a cracking strategy which is working it’s way to being the best on C2. But like I said- I am slightly biased.

To view ESB click here:

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Hello,

It will be interesting to see how your strategy performs when you will gain more capital.
When you hit around 3M USD of capital, I assume you will have some challenges because the “position limit” will hit.

I’m sure you already encounter the " position limit" when you try to execute trades.

Good luck

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Thanks Daniel. It’s not ‘my’ strategy, but I brought the trading team to C2 and I follow it with my own money. Interesting advice though and it’s much appreciated. I know the typical position sizes are ‘1 lot’ so I’m hoping they don’t hit the position limit. Really appreciate the feedback though.

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Just an update on the European Stock Basket.

Amongst the 100’s of strategies on C2, this is NOW RANKED NUMBER 1 STRATEGY.

If anyone is looking for a strategy that both BUYS and SELLS global stock markets (mainly European) then I’d certainly suggest having a look at this.

I assisted bringing this strategy to C2, and I also follow it via my own account.

I would highly recommend it.

There are other excellent strategies at the top of the scoring workbench, but as I know ESB very well- it will provide a good edge for any portfolio.

Have a look at it here:

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