Solid earnings helped fuel a rebound in stock prices on Wall Street that lasted through January and into early February, yet concerns over global growth continue to linger, concerns not helped by a distinct lack of progress in reaching any kind of trade deal between the US and China. We also have the looming prospect of another US government shutdown.
These concerns have seen a dip in US stock indices over the last few trading sessions, while the US dollar has risen sharply over the same period, lifted by safe-haven buying.
The top trader that we are going to look at today had a tough time of it as whole in 2018, particularly in the last few months of the year, but like the stock market, has been enjoying a bounce-back in fortunes since the New Year. This trader is Akell, who we last discussed back in the autumn of 2018. This how their account looks at the moment:
Things look healthy enough profit-wise at the headline level with a lifetime gain of more than 63%, achieved over a stretch of more than three years as a real-money trader. The maximum drawdown of 17.37% hasn’t increased any since we last caught up with them, which is nice sign of stability, though there hasn’t been any improvement in the risk score, which still stands at an eye-watering level of 10.
The volatility rate stands at a more reasonable 3.7%, but as we have said in the past, if you are considering following this account, it is worth thinking long and hard about that risk score and whether it fits in with your own risk outlook.
With such a substantial track record, it may be more illuminating to look at how the numbers breakdown by month and year than to just focus on those headline metrics.
As you can see, 2016 remains the gold standard for this account, a period over which the lion’s share of their profits were made. 2017 was also an impressive year, but 2018 ended up as time of loss, giving back just over 4% over the course of that year. The green figures have returned for 2019 though, with January alone recovering those losses from the previous year.
Let’s now look at the financial markets that they have been using for their trades.
This is a very similar picture to when we last looked at this account. They continue to have a large exposure to mining company BHP Billiton, and a fairly decent mix of positions elsewhere. The only real change is in the composition of which individual stocks they have been using, with UK tobacco stock Imperial Brands taking up a slice that was previously occupied by US telecoms giant AT&T.
In summary, this is an account with a substantial track record, showing sizeable net gains from over 2000 trades. Some of the gloss was lost last year, though, a period in which they evidently struggled to cope with the prevailing market conditions. We have seen a brief return to form recently, but it might be worth monitoring how things fare with this account just a little longer, to wait on more evidence that they are able to keep this positive momentum going.