TD AMERITRADE HOLDING CORP significantly underperformed today. It lost -0.75% to close at 47.57. During the last week it lost -2.52% and saw a maximum drawdown of -4.41% before bouncing back.
Buy-and-Hold investors in AMTD experienced a maximum drawdown of -15.3% over the last three months. It lost -15.3% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +10.36%.
During the last three months AMTD was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +2.84%) was on Monday, 26 Nov, 2018. While it's worst loss in the same period (of -5.45%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 26 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -5.51% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +3.81% to investors.
AMTD had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of AMTD and SP500 index were the same. AMTD was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -11.6% compared to -7.75% returned by SP500 index in Dec 2018. AMTD had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.
Fortune sides with him who dares.
AMTD is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AMTD's volatility from 19 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that AMTD has significant positive skewness in it's return distribution. This indicates that investors can expect AMTD to recover from drawdowns quickly. Which makes AMTD a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in AMTD derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute