The Money Making Machine
I have been doing research in some premium sites where they show you an amazing performance return of their strategies. I spent $2K of my hard earned cash for signing up these premium sites and tried them for a while. I invested in Python training courses for finance, bought some books also. For example https://finviz.com/ is a good site. You can filter stocks depending on a certain strategy like New Highs, Unusual Volume, Earnings Upgrade etc. If you want to backtest these strategies then you need to sign up to finviz elite for $25 a month. Then I found some websites like https://www.quantopian.com/ that allows you to backtest your strategy against their DB. https://www.morningstar.com/memberships is also good research site where you can get tips on which stocks to invest. As I am an IT geek and understand programming a bit I read books on Python for Finance where you can learn how to develop strategies with code and automate trading. The idea here is to figure out how to beat the index. If you cannot beat the index all the efforts are useless. You can simply invest in S&P500 ETF like SPY and VUSD. I developed a couple of strategies where backtesting shows too good to be true results. See the graph below;
Let me explain the historical graph. Assume you invested $10000 on Jan 2018 for my strategy. 103 weeks later at the end of 2019 your money would grow to $25044. Strategy would give you a return of 150% where if you invested in the index fund then it would be $12278. That is roughly 22%. I could back test my strategy in longer terms like 20 years or 10 years and strategy always beat the index fund by far. Then I decided to get rid of my index fund VUSD and allocated that money to my strategy.
That is not just beating the index it is smashing it! Backtest strategies work
on session close prices Weekly or Daily. They do not include transaction costs. So I do not expect to get exact return as the graph above as the time you buy stocks plays a major part as well as the day you choose to trade. I have decided to trade on Weekly every Friday after 1 hour of session open. I have done it for a few months and it got boring to sit down run the strategy and get the list of stocks for that week and then add them to your watchlist in Interactive Brokers (IBKR) app, buy new ones and sell the old ones etc. I discovered IBKR has API support so I can automate trading through Python. I manage to automate the whole process including posting weekly returns to my blog.
I have been trying my strategy with 10% of my portfolio ($100K) and tracking the status of my actual return. So far so good every Friday after my automated trade, results are automatically posted to my blog. As I invested so much time and money I would like to get some return by releasing
weekly stocks to the investors who would like to follow my path. Each week the stocks to trade are posted in premium.mraxefinance.com. You need to pay only 10$ per month to get access. I think it is a bargain as you are likely to get your money back from the first week of trade. In the premium area I will also post updates on my $1M portfolio. I am all IN for transparency.
Below are the steps outlining how The Money Making Machine
- Get the weekly stocks list through strategy from my premium site
- Sign in to IBKR TWS app or any other broker of your choice and BUY the stocks in the list, SELL the ones they are no longer on the list.
- Calculate the weekly return performance and post the graph to MrAxeFinance blog.
- Post weekly analysis of Profit and Loss calculations to the premium part of my site.
I have automated all the steps above with Python so every Friday I simply run my program and it does it all automatically so I can enjoy my Friday evening. I will write some blog posts on how I automated these steps so you can do the same if you wish. If you use IBKR then all you need to do is to sign up to receive the weekly list. Save the file on your computer where you will execute the Python program. Run the program and that is it. If you are not so familiar with IT or automation no worries it only takes 10 mins of your time to buy and sell stocks every week. The strategy generate maximum of 8 stocks that are listed in NYSE or Nasdaq only.