Wall Street continues to be roiled by great volatility, with the Dow Jones enjoying an unprecedented one-day rally of more than 1000 points on Boxing Day, only to give back more than 400 points early the next day. Rather than being driven by signs of weakness in the economy, the declines have — to a large degree — been driven by geopolitical headlines.
An ongoing thorn in the side of the market has been trade tensions between the US and China and this latest stock market decline comes amidst reports from Reuters that President Trump is weighing up a US ban on equipment built by Chinese firms Huwai and ZTE.
The top trader we are looking at today is fairly new in terms of their track record, but they have put together an impressive sequence of results, nevertheless. The account is called swisstrading and this is how things look for them at the summary level:
Given that they only started trading with real money back in September, these are truly remarkable numbers. A profit of close to 89% in a matter of just a few months is very impressive, as is the record of having 100% winning trades.
There are a few things that suggest it might be worth applying some caution though.
First of all, there is the brevity of the track record. It is always difficult to be confident about a trader when there is only limited evidence to go on as far as their trading ability is concerned. Furthermore, we can see that in just a short amount of time, they have had quite a substantial maximum drawdown — though of course it does compare favourably to the size of the overall profit.
Tied in with this is the risk score of 4. Although not terribly high, this is still a little on the punchy side and may therefore suggest unsuitability for those inclined to taking on only a low level of risk.
Though they do only have a few months to show, it’s still worth looking at how things break down month by month.
That is some streak they have been on! Everything is green and along with that, we can see that they accrued a huge monthly profit in October and December has also been shaping up along similar lines.
Let’s now turn our attention to which instruments they have been using in order to generate these remarkable returns. This is their asset breakdown:
That is actually quite a nicely balanced mix. No single instrument dominates the picture. Gold is the most-utilised asset, with roughly a quarter of all trades using the precious metal. Silver also features prominently, but with European and US stock indices and EUR/CHF rounding out the picture, it’s quite an eclectic mix, meaning that the exposure is spread over a number of different types of market.
Overall, this is clearly an account that has been thriving in recent market conditions. Whether that will continue remains to be seen, of course, but this is certainly an eye-catching account at the moment, owing to the prodigious gains made in such a short space of time.