Hari Seldon Trader

and his trading model for long-term investors


HST in 2020 and the improved algo for 2021

Year 2020 has been really unusual for financial markets, with a significant correction in Feb-Mar due to Covid, which crashed the S&P500 index to a -34% in one month.
Central Banks and governments around the world strongly intervened with robust stimulus pakages and QEs, and stock markets closed with a good growth (S&P500 around +15.5%), also lead by Big Techs performance, the stock which actually took advantage from a stay-at-home situation.

In the past 12 months our HST trading model has largely outperformed the market, with leveraged variant closing with an astonishing +58% (chart on the left side).
Our real investments have achieved this result with real money, and the members of our Edu service have been getting tips and daily signals of the model constantly.

Now the model has been improved and slightly changed in its "Fundamental Indicator". Performance looks even more attractive: the leveraged model would have performed +165% in the only 2020 (chart on the right side).

We shall adopt this new algo in the HST model for the coming 2021, which might be a year full of opportunities for investors, given the massive flow of money generated by the coming Easings from Central Banks.

Since we are long-term investors, we judge a strategy on the long run, and one year or few years might not suffice.
So, look at the past 50 years (1971-2020). See how the model is effective in stepping aside (to a Cash position) during bear markets or main corrections and being invested in US stocks during bull markets.
The CAGR (average annual yield) is a surprising +55.7% per year with HSTv2 (= using  3x leveraged ETFs).

Main advantages of the HST model:

  • few trades per year (~20 on average), no need to stay at the screen during trading day. Trades are made during last trading hour
  • impressive yields (CAGR +18.0% for unleveraged variant, CAGR +55.7% for 3x leveraged variant) with
  • reasonable drawdowns: during period 1971-2020 max dd for unleveraged variant has been -23.8%, while max dd for 3x leveraged variant has been -52.4%
  • model has only three positions: Aggressive Long (investing on Nasdaq)  / Moderate Long (investing on S&P) / Cash. For each position, investors can buy a specific ETF with high liquidity, as
  • $TQQQ / $UPRO / Cash for 3x leveraged variant or $QQQ / $SPY / Cash for unleveraged variant
  • investors get the signal at the end of trading day, being alerted during the day if a shift is coming
  • Real-Time alerts and signals released on Private Telegram Channel to members
  • Members can see a shared google spreadsheet online with the day-by-day signals and operations
  • A proprietary App can be installed on members' smartphone (iOS or Android), with comments and track records, updated every day