The results of AP Strategies for 2022 and the Previous Year
On 7/29/2022, we celebrate the first anniversary of our AP US Large-Cap Aggressive strategy running in the eToro app, where anyone can copy it from an investment of $200. On this occasion, we present the main statistics associated with our strategies.
First, let’s briefly recall how our strategies are built
We compare investment strategies with the long-term performance of the S&P 500 index. You can easily buy shares from this index through so-called ETFs. The S&P 500 index achieves a long-term appreciation (CAGR, Compounded Annualized Growth Rate) of around 9% p.a. In the previous 15 years, the most significant drawdown of the benchmark was -50%, approximately.
Our strategies select the most undervalued and overvalued stocks from the largest American companies based on our risk-adjusted returns model built on machine learning, statistics, and big data. We then automatically buy and sell selected stocks as part of investment strategies.
The goal of the AP US Large-Cap Aggressive strategy is to surpass the benchmark on the return indicator when having similar declines. The long-term CAGR of this strategy is 17%. It is advisable to use the strategy if you believe in the long-term growth of the value of American companies and you don’t mind dips, which you can easily catch up on for a long time.
The goal of the AP US Large-Cap Hedged 1.5 Shares strategy is to slightly outperform the index while minimizing declines (the most extensive loss was -17% in the same time series), the long-term CAGR of this strategy is +14%. It is advisable to use the strategy if you want to protect your money, avoid big drops and at the same time achieve a stimulating return.
And how did our strategies work on real investment accounts in 2022 (YTD, Year to Date) and overall in the last turbulent year (1Y, 01/08/2021 – 29/07/2022)?
Results in real operation
|Strategy/ benchmark||Rate of Return 2022||Excess yield 2022||Rate of Return 1Y||Excess yield 1Y|
|S&P 500 Index||-13.34 %||–||-6.03 %||–|
|AP US Large-Cap Aggressive||-3.94 %||9.40||+1.78 %||7.81|
|AP US Large-Cap Hedged 1.5 Shares||+8.22 %||24.56||+8.61 %||14.64|
The results are presented exactly according to the values in our investment accounts, i.e. after deduction of all fees or spreads.
Our comment on the results achieved
The benchmark fell by -6% and -13% in the monitored period, so it was a very negative period in the long term, in which an all-time high was reached, followed by a significant drop.
AP US Large-Cap Aggressive achieved an annual gain of +2% and -4% YTD for the period under review. Excessed yield compared to benchmark is 9% to 8%.
AP US Large-Cap Hedged 1.5 Shares gained +8% in both timeframes. Excessed yield compared to benchmark is 15% to 25 %.
Both of the strategies behaved exactly as specified, even in this challenging period, and exceeded the benchmark in the desired indicators. Detailed information about our strategies and long-term performance can be found in our app.analyticalplatform.com in the Preferences section.