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: