Hi Folks,
Here is the final update to the "AOT Weekly Top Pick" stats I've been tracking in 2022!
I think many of you will find this post very helpful. I created a post titled "A Simple Strategy if You Work Full Time!" and "AOT Top Picks Return +121.36% YTD 2022" , this is the final update to the series.
Basically what I've been doing is tracking the "AoT Top Pick of the Week" performance of a 1 week period this year. The strategy and idea behind it is very simple!
I realize that many traders work a full time job or own a business so not everyone has time to sit around screens and watch the market. This is exactly why I spent the time to develop this strategy. It can be a perfect way to supplement your current strategy or if you want to take a hands off approach and keep it simple its perfect for that too!
Art of Trading is offering heavily discounted rates on multi-month trading/ alert packages to help start your new 2023 year off on the right foot!
What's nice about this strategy is it really only requires $10k in capital to work with it!
I send out a “stocks to watchlist” each Sunday night or early Monday morning to Art of Trading members. I have been asked by many Art of Trading members how they can make the most of these lists. I encourage traders to take the skills they have been taught through the Art of Trading and apply them to these lists. Occasionally some of the stocks on the list might be alerted as an official trade through out the week depending on how the market acts and firms up.
When I create these weekly AOT watchlists for ART OF TRADING members, I look for the strongest performing stocks across multiple sectors with specific technical characteristics utilizing my PEG (Power Earnings Gap) system for both Bullish and Bearish Setups . Short term (1 – 2 weeks) these setups I find are usually ready to make some sort of move. So, with this in mind I went back and tracked all of the Top Picks from 2022 and compiled the performance over a 1 week period!
Here are the criteria I used for the data:
I assumed the opening price was bought on Monday
I assumed the closing price was sold on a Friday
“1 week” hold means “bought Monday open – Sold Friday close”
Each position is sized with $10,000 capital
This is what I found after compiling the data!
Out of 49 Trades: 33 wins / 16 losses
Win Percentage = 67%!!!
The return on the $10,000 after 49 trades was +$11,574 NET PROFIT or +115.74% in a BEAR Market!
Here is a comparison chart of the AoT Top Pick Strategy against $SPY for 2022.
AoT Top Pick returned +115.74% on the year
SPY returned -18.62%
The win rate sitting above a 2:1 ratio is what really helps this strategy out and it fits with my idea that many of these "Top Picks" are usually right on the edge of a technical move whether it be up or down!
The most surprising statistic is the 115.74% return. This is simply using 1, $10k sized position per week. Very little capital requirements for an OUTSTANDING RETURN! The strategy isn't complicated.
The return could be theoretically increased with a small capital management change to the strategy. The average losing trade lost roughly 10.45%. With outliers in the 16% and higher range. A stop loss could be set on all trades around a 12% loss to level out the maximum loss and theoretically increase the performance.
I hope you found this data useful! This could potentially be a great trading strategy for 2023 to try yourself! With the difficulty of the 2022 bear market and the outstanding return this strategy returned you could only imagine what it could potentially do in a much friendlier market!
Cheers and happy trading!
Art of Trading