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Full Excel Data Available (496 Weeks vs S&P Index Benchmark) - Pls Message Me.
Note: Backtested Since Dec 2008, Producing Avg 82.98%/Yr Returns Without Leverage.
(Note: Backtesting data is hypothetical and it has not been verified by C2. Forward trades published live since May 7th 2018 on the C2 platform are verified by C2).
What’s the “fundamental” part of this strategy? You bought RPXC which is being acquired and the stock wasn’t going to move anywhere. I assume this means it is fully automated and you don’t have any qualitative factors.
Looks like concentrated small/microcap stock trading using 2x leverage.
FYI, Backtests are worth nothing here. Just perform over the longer term and you’ll do fine.
Here is my system that I trade live with consertive stop loss from $150-$450 depending on ticker. It just goes for small wins, and avoids flat markets. The returns come from a lot of small wins with a 7 to 1 ratio.
RPXC was an ‘oops’ trade - prob due to working from a mobile on the morning, and not checking every detail. The strategy does absolutely include ‘qualitative’ fundamentals, eg., FCF/CAP, FCF/EV, money-flow etc., but is 90% stock-screen based (quantitative). I have started to check every stock ranked on the screen to ensure there are no acquisition/merger issues.
Also - this is not a small/microcap strat, the only rule governing market cap is: MC>50million. So, it can include large/mega caps from time to time.
I strongly disagree about backtests - I have used them on P123, and Quantopian, with success. It is a good basis to start, while being mindful of what works ‘now’ vs what worked in the ‘past’. On this basis, I believe ‘value’ fundamentals are back, while ‘momentum’ is on its way out. But that is my opinion. All C2 is also based on hypothetical testing albeit forward, so by the time investors see performance it becomes by default ‘past’ performance. So what gives?