Stop-loss on the minds of DIVIDENDSTARS THEME investors as it destroyed investor wealth

Dividend Stars significantly underperformed today. It lost -1.06% to close at 1037.89. During the last week it lost -4.28% and saw a maximum drawdown of -4.28%.

[Theme constituents]

Buy-and-Hold investors in ~DIVIDENDSTARS experienced a maximum drawdown of -9.43% over the last three months. It lost -8.9% during this 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 +5.76%.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~DIVIDENDSTARS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, ~DIVIDENDSTARS underperformed the SP500 index on 50% days. Which indicates that on days ~DIVIDENDSTARS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

~DIVIDENDSTARS returned losses on 58% days in the last three months. During this time, it delivered on average -0.14% per day. It delivered it's worst daily return of -2.78%, during this period, on Tuesday, 20 Nov, 2018. There was initially a bullish trend during this period which started on 26 Nov, 2018 and went on till 3 Dec, 2018. The bullish trend returned +4.7% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -5.4% of investor capital.

~DIVIDENDSTARS had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of ~DIVIDENDSTARS and SP500 index were the same. ~DIVIDENDSTARS was also a less risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -7.74% compared to -7.75% returned by SP500 index in Dec 2018. ~DIVIDENDSTARS and SP500 index, both had periods of 6 consecutive profitable months. It is interesting to note that both ~DIVIDENDSTARS and SP500 index significantly outperform during months when quarterly/annual results are announced.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

~DIVIDENDSTARS 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 ~DIVIDENDSTARS's volatility from 19 Sep, 2018 to 7 Dec, 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 ~DIVIDENDSTARS has significant positive skewness in it's return distribution. This indicates that investors can expect ~DIVIDENDSTARS to recover from drawdowns quickly. Which makes ~DIVIDENDSTARS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~DIVIDENDSTARS), two instruments that deserve special mention are TYHT and AYTU. They have significantly outperformed the overall market.