Stocks

We introduce Cherry Pick, our wordlwide stocks strategy. It is based on the well known momentum effect: Stocks are selected and sorted based on their return from the past months. Particular care has been taken in reducing turnover and survivorship bias. A regime filter is applied during market downturn periods. The stock selection is updated monthly.

The trading universe is composed of the most liquid stocks for each curreny group, as shown in the following table:

The backtest (over a time span of 20 years) shows consistent profits for each currency group and raisonnable drawdowns. The following figure represents the evolution of the equities (net of fees, starting with 1$ each, not compounded):

And the associated statistics:

Signals are free, updated at the end of the month, and valid for the next month. It is advisable to use a limit order at the closing price of the month. In the unlikely event that the order is not filled, it is preferable to switch to a market order. We select up to 10 tickers per currency group (EUR, USD, GBX, CAD, AUD).

Note: historical data are provided by EODHD.