Luca Minici @TheEtoroProject: "𝐓𝐎𝐏 𝟖 𝐏𝐎𝐏𝐔𝐋𝐀𝐑 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑𝐒 𝐯𝐬..."

Luxembourg

𝐓𝐎𝐏 𝟖 𝐏𝐎𝐏𝐔𝐋𝐀𝐑 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑𝐒 𝐯𝐬 𝐒&𝐏𝟓𝟎𝟎 𝐯𝐬 𝐌𝐄: 𝐏𝐑𝐎𝐒 𝐀𝐍𝐃 𝐂𝐎𝐍𝐒 𝐎𝐅 𝐀 𝐅𝐋𝐄𝐗𝐈𝐁𝐋𝐄 𝐒𝐓𝐑𝐀𝐓𝐄𝐆𝐘 📊 In a market that seems increasingly overvalued 📊 and where the chances of a correction are growing 📉 (𝐀𝐥𝐥 𝐦𝐲 𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧𝐬 𝐚𝐫𝐞 𝐛𝐞𝐜𝐨𝐦𝐢𝐧𝐠 𝐫𝐞𝐚𝐥𝐢𝐭𝐲 as I wrote here → www.etoro.com/posts/6d83a870-96fa-11ef-8080-80007aa86243), I want to show how a flexible strategy can be a good choice, especially for risk-sensitive investors 🛡️ or new copiers. In the table below 📋 (click on it to see it all) I summarized: 1. The performance of the Top 8 Popular Investors on eToro (selected by the number of copiers). 2. The performance of the S&P500. 3. My actual performance and how I would have performed if I had been fully invested all year. 𝐊𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 🧾 1. December 2024 🗓️: The Top 8 underperformed the S&P500 by about 8% over the full year (21.42% vs 23.31%), despite similar losses in December (~ -2.50%). 2. Monthly performance (December): My strategy 𝐫𝐞𝐝𝐮𝐜𝐞𝐝 𝐥𝐨𝐬𝐬𝐞𝐬 𝐛𝐲 𝟔𝟐% compared to the Top 8 and S&P500 (-0.96% vs -2.50%), but underperformed the Top 8 by 27% and the S&P500 by 33% for the entire year. 3. Simulating "fully invested" 🛠️: In December, I still reduced losses by 45% (-1.38% vs -2.50%), and my full-year performance would have been 22.23%, between the S&P500 and the Top 8. 𝐌𝐚𝐢𝐧 𝐩𝐨𝐢𝐧𝐭𝐬 🧠 𝐁𝐮𝐥𝐥𝐢𝐬𝐡 𝐦𝐚𝐫𝐤𝐞𝐭 𝐬𝐜𝐞𝐧𝐚𝐫𝐢𝐨 📈 If the market keeps rising steadily, my strategy will continue to underperform until my algorithm generates signals to move me closer to being fully invested. In this case, I may "miss out" on part of the rally before these signals appear (historically, about 4-6 months on average). 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐜𝐨𝐫𝐫𝐞𝐜𝐭𝐢𝐨𝐧 𝐬𝐜𝐞𝐧𝐚𝐫𝐢𝐨 📉 If, as I believe, the market faces a 15-20% correction, my reduced exposure will limit my portfolio losses by about 50%. Plus, having 30-35% cash 💵 means I can invest during the biggest drops, benefiting from higher returns when the market recovers. 👉 Fully invested portfolios will only "recover" their losses, but those with cash will take advantage of the rebound for potential gains of 18-25%. 💰✨ 𝐑𝐞𝐚𝐜𝐡𝐢𝐧𝐠 𝐟𝐮𝐥𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝 🚀 When my strategy eventually becomes almost fully invested, I still expect smaller losses than the market during downturns 🛡️ and returns close to the S&P500 during rallies. 𝐅𝐀𝐐𝐬 ❓ 🔎 𝐖𝐡𝐲 𝐰𝐞𝐫𝐞𝐧’𝐭 𝐲𝐨𝐮 𝐟𝐮𝐥𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝 𝐟𝐨𝐫 𝐭𝐰𝐨 𝐲𝐞𝐚𝐫𝐬? Because I built this account with a mostly algorithmic strategy, which avoids emotional decisions. My model buys and sells only when specific events occur. This takes time to get fully operational: in 2023, I was 30-40% invested on average, while in 2024, I increased to 60-70%. 🔎𝐖𝐡𝐞𝐧 𝐲𝐨𝐮’𝐫𝐞 𝐟𝐮𝐥𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝, 𝐰𝐢𝐥𝐥 𝐲𝐨𝐮𝐫 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐬𝐭𝐢𝐥𝐥 𝐛𝐞 𝐟𝐥𝐞𝐱𝐢𝐛𝐥𝐞? Yes, because I will: 1. Rotate the portfolio into assets with better profit expectations. 2. Monitor macroeconomic conditions to sell if high volatility seems likely (e.g., I sold some $SPY (State Street SPDR S&P 500 ETF) and $QQQ (Invesco QQQ) before the Fed meeting on December 18). 𝐖𝐡𝐨 𝐢𝐬 𝐭𝐡𝐢𝐬 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐟𝐨𝐫? 👥📈 1. New copiers entering an overvalued market who want to avoid big losses but don’t want to miss potential gains. 2. Current investors looking to diversify risk ahead of possible corrections and grow with me over the long term. 3. Those who want a strategy targeting medium-high returns 🥇 with low risk 📉 and with a fund manager who monitors the portfolio daily to find the best entry points. 𝐈𝐧 𝐜𝐚𝐬𝐞 𝐨𝐟 𝐚 𝐜𝐨𝐫𝐫𝐞𝐜𝐭𝐢𝐨𝐧, 𝐰𝐢𝐥𝐥 𝐲𝐨𝐮𝐫 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐥𝐨𝐬𝐞 𝐦𝐨𝐧𝐞𝐲? ⚠️ It might, but the losses won’t necessarily be significant. I keep plenty of cash 💵 to do scalping or short-term trading (not just on ETFs and stocks, but also on currencies $EURUSD $BTC and commodities $NATGAS $GOLD which could help offset potential losses. 𝐖𝐚𝐧𝐭 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐦𝐨𝐫𝐞 𝐚𝐛𝐨𝐮𝐭 𝐦𝐲 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲? 🔗 Read my pinned post → www.etoro.com/posts/04a3be00-0487-11ee-8080-80010d600831 Visit my official website: 𝐖𝐖𝐖.𝐓𝐇𝐄𝐄𝐓𝐎𝐑𝐎𝐏𝐑𝐎𝐉𝐄𝐂𝐓.𝐂𝐎𝐌 where you can also have a direct contact with me What do you think of this “cautious” strategy but also focused on finding the best entry points? 🎯 Let me know in the comments! 🗨️👇 Happy trading to all! 🚀

6 Mentioned Show all

SPY

State Street SPDR S&P 500 ETF

QQQ

Invesco QQQ

EURUSD

BTC

Bitcoin

NATGAS

GOLD

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies