Strategy

Successful traders always follow the line of least resistance. Follow the trend. The trend is your friend

-Jesse Livermore

DIY Quant trading algorithm aims for abnormal returns. Here we provide a short description of the strategy.

The Stock Picking Component

In a nutshell, the algorithm is a hybrid strategy comprises of trend following and contrarian trading. It aims to pick trending stocks that have potential for huge returns while riding in the same direction as the market. Winning trades are left to run to achieve even higher profit while losing trades are sold off quickly to keep losses small.

>>> Subscribers will be informed whenever the system buy/sell a stock.

The Market-Wide Trend Analysis (MATA) Component

The algorithm also performs overall market and sector analysis to anticipate market/sector movements based on a proprietary component named Market-wide Trend Analysis (MATA for short).  The system will switch between aggressive and defensive mode depending on the trend of the market/sector and adjust the portfolio accordingly once the trend starts to reverse. This provides the system with a good edge as it will always attempt to keep itself on the right side of the market. Check out this post on the recent predictions that came true.

The Risk Management Component

Apart from that. it also perform portfolio risk management and position sizing. The idea is not to put all the eggs into one basket to mitigate concentration risk. This ensures survivability, and reduces the risk of ruin.

The system mostly deals with small and mid cap stocks. That is where it can find hidden gems with huge growth potential. Currently the system is focusing on US and Singapore markets and we plan to venture into other countries such as Japan, Hong Kong and UK provided we can raise enough capital.

Some of the System's Best (Real) Trades

US Portfolio  

Name (Ticker)	% P/L	Entry / Exit
KEMET Corporation (KEM)	370.60%	Nov'16 / Sep'17
LightInTheBox (LITB)	130.91%	Jul'20 / Aug'20
RADA Electronic Industries (RADA)	79.13%	Jun'17 / Nov'17
Bovie Medical Corp (BVX)	61.49%	Apr'18 / Oct'18
Nevsun Resources Ltd. (NSU)	61.17%	Apr'18 / Sep'18

Singapore Portfolio  

Name (Ticker)	% P/L	Entry / Exit
AEM Holdings (AWX.SI)	247.16%	Dec'16 / May'17
Medtecs Intl (546.SI)	130.91%	Jun'20 / Jul'20
Synagie (V2Y.SI)	58.20%	Jun'20 / Oct'20
800 Super (5TG.SI)	55.83%	Oct'16 / Jul'17
Health Management Intl (588.SI)	49.40%	Dec'16 / Feb'17

Some of the strategies that inspired the algorithm.

1. How I Made $2000000 In The Stock Market by Nicolas Darvas
2. The Original Turtle Traders’ Trend Following System

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