WallStreetCourier, established in 1999, is an independent research boutique specialized in providing research focused on trend- & stock market timing strategies. Since our inception, we are supporting our members in making better investment decisions through the delivery of unbiased, well-tested and evidence-based research services.
Our goal is to improve your trading and investment returns by helping you to make better investment decisions. We believe that a comprehensible research approach will deliver more predictable results and, additionally, allows you to easily understand the decision-making framework behind each service.
All services are aimed at avoiding larger losses rather than beating the market every time on the upside. This drawdown-focused approach ensures that the most powerful force in the universe (Albert Einstein) also known as compound interest will work in your favor. Such an approach will normally outperform the market in the long run. A fact, we have impressively demonstrated so far.
A Simple Example of How to Win by Not Losing
The table shows the yearly returns of two portfolios, plus the payoff of USD 100 invested in each portfolio. The first one (High Returns) focuses on high returns, whereas the second one focuses on minimizing losses. There you can see that just by minimizing larger losses in the third year, the Avoiding Losses Portfolio is scoring a higher return in the long run (121.6 USD vs. 117.1 USD). Another major advantage is that the underwater period (peak-to-trough decline) for the investor is also significantly lower. Therefore, the risk of an unfavorable entry point for an investor following such a strategy is also reduced to a minimum. For example, an investor who started to follow the High Returns Portfolio in Year 2 has not made any in the following years. A stark contrast to the payoff character of the Avoiding Losses Portfolio. These considerations are building the cornerstone of our investment philosophy.
As mentioned above, mitigating losses will maximize the expected return of your portfolio in the long run. That’s why all our services are focused on minimizing losses in first and then, to outperform or to perform at least as good as the market during favorable market conditions. This is done by exploiting academically well-documented market performance factors like diversification, momentum (time-series and cross-sectional) as well as market sentiment (investment behavior of smart and dumb money) in a very systematic way.
Although each service can be used effectively on a stand-alone basis, the aim is to incorporate them all, as they are based on different performance drivers. A key advantage of this approach is that it addresses the fact that each strategy performs differently in certain market environments, adding another powerful layer of diversification.
Ultimately you receive a highly diversified portfolio, achieving outstanding risk-adjusted returns across all market environments!