The US stock market has been ticking along very nicely since the New Year, the DJIA surging more than 1.7% on Friday to post its eighth weekly gain in a row. The rebound in sentiment on Wall Street comes after a sharp sell-off at the end of 2017, driven by fears of slower economic growth and further tightening of monetary policy by the Federal Reserve.
Ongoing trade talks between the US and China have helped alleviate concerns that the tariff war between the two might drag on global growth, while the Fed’s decision last month to keep rates on hold and statement that it will be patient in determining future changes to policy have also helped dispel investor fear.
There will be further information available this week regarding those recent Fed discussions, with the release of minutes from the last FOMC meeting on Wednesday.
The big stock market sell off in late 2017 posed problems for many traders, but the top trader we are looking at today not only continued to make consistent profits in 2018, but also has started 2019 with even bigger gains. This trader is TradusMaximus. They boast a long and positive track record, the headline details of which you can view below:
Fist things first, let’s talk about the lifetime profit of the account. At more than 38%, that is good going. Also notable is that they have been trading with real money for three years. The maximum drawdown is sizeable and has crept up a little from where it was last year, but the account has demonstrated strong consistency over the years, as we can see from the monthly breakdown for the account.
Each year has ended with a profit and the amount of green on display from month to month is a testament to the consistency of their performance — there are no back-to-back months with losses. That said, there have been some sizeable swings creeping into the picture. As with many other traders, they suffered a big decline in fortunes in December 2017, though that was followed up with a bigger bounce back in January. We can see that things have also been going profitably in February so far.
I also like how the account has an explanation of the strategic approach behind the trades. This is not actually that common, and being able to expound on the thinking behind the trades goes some way to provide reassurance that there is a consistent trading plan in use.
Let’s now explore which markets lie behind these trades:
They have been using a quite diverse group of markets. The two Forex pairs of USD/JPY and USD/CHF constitute a sizeable portion of their trades, though together represent only around 35% of their asset allocation. It will be interesting to see if this mix becomes even more diverse in the future, in keeping with the intentions stated in their strategy summary.
Despite the high maximum drawdown, this account continues to display a compelling combination of plus points, including a long and positive track record, achieved with a diverse mix of assets.