Are you evaluating investing in DIGITALDOLLARS THEME? Avoid as it delivered massive losses

~DIGITALDOLLARS delivered massive losses today. On a longer term basis, investors in Digital Dollars made +0.09% per day. Friday's performance of -2.17% was a significant underperformance compared to it's daily average.

[Theme constituents]

~DIGITALDOLLARS showed a strong down trend over the last 3 months. During this period ~DIGITALDOLLARS lost -15.94% and saw a maximum drawdown of -16.47%. There were 2 short signals during this period that returned a cumulative of +8.18% to investors.

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Monthly Performance

Alpha (outperformance)

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~DIGITALDOLLARS has been underperforming the SP500 index in recent time, after having outperformed till 4 Sep, 2018. Over the last 2 years 11 months and 3 days, ~DIGITALDOLLARS outperformed the SP500 index on 57% days.

During the last three months ~DIGITALDOLLARS was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +4.41%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.79%) was on Wednesday, 10 Oct, 2018. There was initially a bullish trend during this period which started on 12 Sep, 2018 and went on till 14 Sep, 2018. The bullish trend returned +2.26% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -4.62% of investor capital.

~DIGITALDOLLARS had 7 profitable and 5 loss making months over the last year. During the last year, ~DIGITALDOLLARS underperformed SP500 index on monthly return basis. ~DIGITALDOLLARS significantly outperformed SP500 index in May 2018, when it returned +8.95% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ~DIGITALDOLLARS and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~DIGITALDOLLARS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Anyone who thinks there's safety in numbers hasn't looked at the stock market pages.
-- Irene Peter

~DIGITALDOLLARS is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~DIGITALDOLLARS's volatility from 10 Sep, 2018 to 31 Oct, 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 ~DIGITALDOLLARS has significant positive skewness in it's return distribution. This indicates that investors can expect ~DIGITALDOLLARS to recover from drawdowns quickly. Which makes ~DIGITALDOLLARS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~DIGITALDOLLARS), two instruments that have delivered similar performance as ~DIGITALDOLLARS are SNPS and ~TECHNOLOGY. They are suitable as good alternative investment candidates that can diversify your portfolio.