Algo Trading Outperforms Markets?

So, wrapping up the month of May, where was the best place that you could have parked your dollars in terms of getting some type of growth on your investment or just dormant capital? If you’ve been following this series, I compare the algo bot’s performance over a multitude of different investments and how much growth they achieved in that time period. For this particular video, we’ll be going over the month of May. Without further ado, let’s dive right in.

Welcome! If you’re new to the channel, my name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance over the last several years, and I’m here to share with you everything that they’ve shared with me. In these videos, I track the performance of my own personal Fed account, which is on the lowest risk settings. I mention this because other software that people are running with higher risk settings tend to perform better than mine, but mine provides very steady growth with the lowest drawdowns that I’ve seen. However, the more risk, the more reward.

Now, let’s check out the month of May and how well I did. Here we have my Fed bot account, and if we scroll down to the bottom, I like to highlight the month of May and what we did. We achieved 3.48% in the month of May, and a large portion of that not being higher was due to entering June in a drawdown of a trade that eventually turned profitable. At the end of May, we missed out on the upswing in terms of that calendar time period.

3.48% – let’s see how Bitcoin did compared to this. To the far left, this is my measuring tool. I drop it in the month of May, starting with May 1st on the close of this candle, and drag it over to the end of May, which is right here. Bitcoin achieved a whopping 15.6%, which is amazing for a single month. If you bought on May 1st and held to the end of May, you would have experienced a 15% swing in your equity.

Let’s swing over to gold and see how well gold did. Again, I just grab my measuring tool, swing over to May 1st, and drop it on this candle close. Then I drag and drop to May 31st. Gold did not even a full percent; it did 0.86%. What would be interesting to see, which I’ll pull up right now, is how the Gold Digger bot did in comparison to actually holding gold. If you don’t know what the Gold Digger bot is, I made a video right here that just popped up. If you click that, you’ll get a full-blown video on exactly what the gold bot is and how it works. Long story short, it just trades gold. If you were holding gold or some derivative of gold, you probably only did 1%. But if we pull up the Gold Digger bot, for the month of May, it did 12.15%, which is almost as good as Bitcoin. This algorithm has been exceptional this year. I’m quite impressed with its performance and am getting more interested by the day to fund my own account and track it live for you guys. Also, see how well it does across a multitude of assets, considering it did almost as well as Bitcoin.

Alright, now let’s check how the S&P did. This is a beast of an asset, funded by the Federal Reserve to ensure that the US economy looks good.

Whether we’re performing well or not, that’s a different story. It used to be that the stock market reflected how well the economy was doing. Now, it’s completely decoupled, and the stock market reflects just the stock market, not the overall economy. Enough rambling, let’s check the measurements.

Okay, so this is May 1st right here. Now, let’s swing over to the end of May. That’s the end of May, and the S&P did 3.43%, very similar to my very conservative Fed bot. So, if you had invested in the S&P 500 from the start of May to the end of May, you would have achieved results comparable to my software.

Now, let’s go ahead and check the real estate market. Here is the VNQ Vanguard. I like to bring this one up because last week, I covered a video where a gentleman asked if the bot performance was diminishing. If so, it’s probably going to be similar to the performance of REITs, which is real estate but in derivative form, to put it simply. This one’s pretty cool to see. Let’s see how well REITs did in the month of May, considering they did have a nice run-up.

Alright, so here is May 1st. Let me go ahead and drop this there and go to the end of May. This is the performance of REITs. It did 4.35%, which is just about a percent better than my super conservative Fed bot once again. I thought this was quite interesting because you had a massive run in REITs to the upside, and it pulled back quite dramatically. What saved it was that candle open on the 31st, where it gapped up a bit and then closed a bit higher, recovering some of those gains it had lost during the sell-off. This is very similar to my Fed bot in terms of performance and shows how well the Fed bot actually does in terms of being very conservative. This is a bit more of a conservative thought asset, and I find it quite interesting to compare the two of them.

Just for fun, let’s go ahead and look at Jeff’s Fed bot account. We’ll just look at the month of May and see how well he did, considering his settings are more aggressive than mine. For the month of May, even with his higher risk settings, he only did 3.7%. Again, the Fed bot typically ends up taking the same trades, so at the end of May, we experienced a larger pullback in terms of a drawdown. This trickled into the 1st of June, and the trades ended up closing out on the very first of June, which probably reflected in the under-performance.

Overall, if you’re achieving a 3% gain on your equity, I would consider that quite healthy returns, considering all the other things you could be in with relative risks. I consider it extremely good, given how passive in nature it is.

Now, if you found this interesting and you want to diversify your portfolio, go ahead and hit the link in the description. You could be routed to the team to see if this is a good fit for you. If not, and you just thought this was entertaining, please leave me a like, comment, and/or subscribe.

And as always, my friends, peace.

Please visit Algo Trading Outperforms Markets? to watch the full video on YouTube!

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