Can a Free Trading System Match NVDA?
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NVDA is amazing.
Almost as amazing as Tulips in the 1600s, and that's saying something.
Fortunes have been made this year and I-you-so's have been posted online.
But traders have the short-term memory of a houseplant, and people forget that NVDA was falling pretty hard before their blockbuster earnings report came out. So was the rest of tech.
Basically, the Bull Run was over...and then NVDA unexpectedly knocked it out of the park. Again.
In 2024, in less than two months, the graphic processing unit maker is up 63%:
There's a huge problem with this massive run by NVDA, though.
Well, there are many problems with it. But here's one that applies to us:
It would have been very hard to have predicted this recent earnings call. Right before it happened, everyone thought it was going to be a disappointment.
Which means what? Most people probably sold off to protect previous gains.
And that, of course, means that people went FOMO-over-heels trying to get back in when the earnings turned out positive.
That's quite a ride.
And not a fun one (unless you love chaos).
But, unfortunately, the only way to get big 63% gains is to live the dramatic, stress-addled life of breathless screen-watching.
Right?
For fun, let's compare incomparable NVDA to a free 5-minute system that's on my Performance Page. This system trades regular hours on the S&P E-Mini and goes Long on RSI breakouts. Get all the details on this system for free in this video.
To trade this system, we would need $12,980 in our account, according to my Tradestation. Let's call it a round $15,000.
So, assuming a sample $15k account, how would a simple, free system have done so far in 2024 (via Portfolio Architect)?
After trading costs are deducted, this simple system has hypothetically returned $7,870. With no compounding.
If we divide that by $15k, we get a hypothetical return of 52.4%.
It's not NVDA, not quite, but it's still pretty amazing.
And there's no screen-watching hysteria or worrying about the inevitable bubble NVDA and many tech stocks are in.
Is this NVDA or the Tulip Mania?
Hmm.
Talk to you soon.
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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
