The Trade Ideas October 2020 report below comprises:
- The Trade Ideas Trade of the Week for each week in October.
- A summary showing the number of times that HOLLY traded in the industry and what was the profit or loss associated with those trades.
- About Trade Ideas.
Trade of the Week for October
Week 1
Smith and Wesson Brands, Inc. (SWBI) | The last few weeks we have looked to our Trade Ideas scan called “Revenue Growth Fishing”. This scan looks for bottoming type patterns on the daily charts and at least 18% Quarterly revenue growth.
Week 2
NIO, Inc. (NIO)| The coast is clear again to look for momentum-type swing trades rather than the safer, basing pattern type plays. A new scan created called “Consolidating Juggernauts” curates a list of names showing strong charts but consolidating over the last 5 days in a definable range. This setup can be a great launching pad for higher prices if the market continues higher. Electric vehicles are hot right now (TSLA). Another company; NIO, Inc. (NIO) is gaining popularity around the world markets.
Week 3
Pitney Bowes, Inc. (PBI)| Now we have a chart under 10 dollars that confirms the story. PBI has a float of 170 million and is likely to not be a fast mover but more of a slow cooker into the end of this year.
Week 4
CarParts.com, Inc. (PRTS) | The scan used only finds candidates under 25 dollars that fit the A Table-type criteria with short float and our proprietary scoring filter. The chart confirms the story of a possible short squeeze emerging from this nice, clean chart setup above and resting on all key moving averages.
Trade Ideas’ Machine Learning AI:
HOLLY, October 2020 Overall Performance
Over the course of October 2020 HOLLY strategized a total of 213 trades up from 173 in September. Overall performance was a decline of 2%. As a point of comparison, the SPY over the same period lost 1.87%. Overall, HOLLY’s performance in a high volatility and event driven environment continues to fall within acceptable trading scenarios as described below.
The table below details the Top 5 and Bottom 5 Sectors and the performance in each. The full risk profit is the profit per share of the trade using no stops and holding until just before the market close. Enterprise licensees and subscribers recognize that their hold times vary beyond end of day according to their risk management preferences. The total performance of HOLLY AI for October was -2%.
HOLLY Performance by Sector for October 2020
Conclusion
Portfolio Managers and Traders who avail themselves of HOLLY gain the ability to increase performance and mitigate risk. HOLLY has no emotional response to market conditions. As has been true since HOLLY’s inception, October 2020 proved out this principle of HOLLY’s effectiveness.
About Trade Ideas
Trade Ideas is an artificial intelligence decision tool that enables portfolio managers and traders to make better decisions in the stock market.
Trade Ideas identifies opportunities to capture alpha before others and in sectors and places within the market where no one else is looking.
Overnight, Trade Ideas artificial intelligence capability, HOLLY, runs massive structured and unstructured data (market activity, news, social media, etc.) on all US equities across some 40 different trading strategies, each of which has multiple algorithms, effectively taking into account tens of millions of simulated trades.
The result is the reporting each trading day of 5-7 trading scenarios which may outperform the market. Risk guardrails are set against each strategy, so traders are alert when up or down limits are reached intraday.
Additionally, each week Trade Ideas publishes it’s free Trade of the Week. Visit the website to sign up.
https://www.trade-ideas.com
https://pro.trade-ideas.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.