29.65 +0.27 (+0.92%) Sell

Don't go profit booking on BPL now, it delivered a decent return

13 min read

BUCKEYE PARTNERS, L.P. outperformed on Friday. It surged by +0.92% to close at 29.65. It is currently trading -47% below it's 52 week high of 56.92.

[Themes containing BPL]

BPL showed a strong bearish trend over the last 3 months. During this period BPL fell by -20.27% and saw a maximum drawdown of -23.89%. There was a short signal during this period which returned +14.11%.


BPL has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 23 May, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 3 days, BPL underperformed the SP500 index on 52% days.

BPL returned losses on 66% days in the last three months. During this time, it delivered on average -0.34% per day. It delivered it's worst daily return of -4.16%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 14 Sep, 2018 and ended on 26 Sep, 2018. This bearish trend lost -7.66% of investor capital.

During the last year BPL had 5 profitable months and 7 loss making months. BPL returned profits in fewer months than SP500 index. BPL was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -16.91% compared to -7.28% returned by SP500 index in Oct 2018. BPL had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -15.97%. It is interesting to note that both BPL and SP500 index significantly outperform during months when quarterly/annual results are announced.

If you totally want to reduce risk, take no risk. Bury the money. Then you've got no risk at all.
-- Don Connelly

BPL is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BPL's volatility from 10 Sep, 2018 to 5 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BPL has significant negative skewness in it's return distribution. This indicates that BPL is very risky for short-term investment and can significantly underperform for long durations.

SP500 index has more chance of extreme outcomes than BPL. Therefore, SP500 must receive a lower allocation than BPL in your portfolio. SP500 index usually has shorter drawdown period than BPL.

Based on your interest in BPL you may find it interesting to know that AAXN is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter