Trade Ideas Monthly Summary: September 2020

The Trade Ideas September 2020 performance report below comprises:

  • The performance of Trade Ideas’ Trade of the Week for each week in September.
  • A summary showing the number of times that Trade Ideas’ Machine Learning AI, HOLLY, traded in the industry and what was the profit or loss associated with those trades.
  • About Trade Ideas.

Trade of the Week for September

Week 1

Children’s Place PLCE | Looking at the “Revenue Growth Fishing” scan we found a great looking chart in retail. The Quarterly revenue growth is 45% and the chart has a nice base to it. The risk reward down here in the low 20’s is attractive.

Week 2

Southwest Airlines Co. LUV | Taking a top down approach this week by looking at the strength of the airline sector recently.  The gold standard for airline travel is Southwest Air (LUV). The idea will be to not let the price close under the 50-day moving average and keep the 200-day moving average in sight above. 

Week 3

Alpha Pro Tech, Ltd. APT| Another signal from the Trade Ideas “Revenue Growth Fishing” scan. This name, in addition to having a nice basing pattern on that daily chart with an inverse head and shoulders pattern. Also, APTY has a function of COVID and PPE to their business model.

Week 4

Eastman Chemical EMN | EMN presented itself on our “Revenue Growth Fishing” scan that has been doing so well as of late. Just looking for a nice basing pattern on a company that has at least 20% Quarterly revenue growth.

Holly 2020

Trade Ideas’ Machine Learning AI:

HOLLY, September 2020 Overall Performance

Over the course of September 2020 HOLLY strategized a total of 173 trades down from 219 in August. Overall performance was a decline of -1.5%. As a point of comparison, the SPY over the same period returned -5%. Overall, HOLLY’s performance in a high volatility and event driven environment continues to fall within acceptable trading scenarios as described below.

Holly wins

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 September was -1.5%.

HOLLY Performance by Sector for September 2020

Top 5 sectors

Bottom 5 sectors

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, September 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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