A bumper US jobs reports helped contribute to a big rebound on Wall Street at the end of last week, and the positive momentum has continued into the start of this week, with the Dow Jones closing above 23,500 on Monday.
December was almost unrelentingly negative for the US stock market, but as the US enters into trade talks with China, there is the potential there to turn market sentiment around if progress is made. That remains a big if, however.
The top trader we’re going to look at today has been thriving in the bearish conditions of the last few months. The trader is called SunnyValley and although the account is fairly new, it has demonstrated some early promise.
This is how the account looks at the headline level:
We can see from the chart how they have managed to massively out-perform the benchmark of the DAX over the last quarter of 2018 and overall they have accrued a profit of 9.7% in quite a brief span of time.
The risk score of 3 is fairly low, as is the volatility percentage of 6.41%, but the size of the maximum drawdown is a bit of a cause for concern. At 18.35% it’s larger than we’d normally like to see, especially in the context of a lifetime profit of under 10%. Also, we must note how they have only just begun trading with real money.
Of course, headline numbers don’t always tell the whole story, so let’s look at how their track record pans out when we delve into the monthly performance of the account:
They definitely didn’t get off to the best start, kicking things off with a chunky loss in July. Since then, though, they have put together an impressive performance, a run that has swung the account round into a healthy profit — and encouragingly, that has continued into early January, encompassing the period in which they have begun to use real money.
Let’s explore which instruments they have been using to make these trades:
That looks like a nicely well-mixed variation of markets. The mix is diversified geographically, with use of Asian markets like the Hang Seng and the Nikkei alongside an exposure to European and US stocks. Gold adds diversity by market type, offering a broader blend of instruments than we often see.
Overall, this account is one of those that shows promise but is perhaps a little too lacking in the length of the track record. I think it is an interesting one to keep an eye on, to see whether they can keep this promising start going.