Jeff Baker 9/8/2020
**the examples and commentary given are for informational purposes only and as with any investment decisions you are encouraged to do your own due diligence and consult your licensed investment advisor**
As a Senior Analyst at Common Stock Warrants (CSW) and the primary data analyst, programmer, economic geologist, I have had the opportunity to run many Python simulations and placed our databases within the machine learning environment to find statistical abnormalities and patterns in warrants. This series of posts will focus on how the results of those investigations have led me to find a path to creating a rolling basket of securities that require far less capital to start trading with warrants. All of this is prefaced with an in-depth exposure to the trading methodology of Dudley Baker and CSW which seeks to secure thousands of percent in gains in longer term scenarios with warrants.
Return to the first part of this article series if any of the terminology or discussion in parts of this series needs clarification.
In the previous articles in this series, there was a demonstration of the leverage capabilities within a basket of warrants and the potential methodology for a retail investor to implement to utilize stock warrants as a viable component of their portfolio. We discussed some of the most important aspects regarding entry and exit as well as exercise prices and their relationship to our selections. We looked at charts of comparison between the common shares and warrants and discussed the individual’s decision to exit when situations seem too good to be true. With the following list now in the rear-view mirror, how did our 3000.00 initial investment perform?
|WARRANT||COMPANY NAME||ENTRY PRICE||EXIT PRICE||% CHANGE|
|NFINW||Netfin Acquisition Corp||$1.08||1.47||36.11%|
|TOTAW||Tottenham Acquisition I Limited||$0.19||0.42||121.05%|
|SAQNW||Software Acquisition Group Inc||$0.97||1.15||18.56%|
|KCAC.WS||Kensington Capital Acquisition||$0.8956||6.3||603.44%|
|CFFAW||CF Finance Acquisition Corp||$0.95||1.01||6.32%|
|FPAC.WS||Far Point Acquisition Corporation||$0.93||0.78||-16.13%|
|SOAC.WS||Sustainable Opportunities Acquisition Corp.||$0.8999||1.31||45.57%|
|FTACW||Federal Street Acquisition Corp III||$1.45||1.61||11.03%|
|NBACW||Newborn Acquisition Corp||$0.138899||0.1459||5.04%|
|ALACW||Alberton Acquisition Corp||$0.09||0.2||122.22%|
The results show that the return across the basket is 95.32% with the original 3000.00 now being worth $5,859.65 upon exit from the positions at the close of 10 days
Before finishing, I want to mention that subscribers to our services have not been given this information as it is still at the end stage of development. They will be the first to receive the working set of indicators when experimentation of the methodology has concluded. This article finale was put on hold to run the workflow and produce the next “list” which at the time of this writing has 8 of the 10 up for the day while the markets are taking a hit. This is further indication that the concept of diversity through this basket has protected our portfolio through the consecutive down cycles from Thursday through the long weekend and again on the open today September 8, 2020.
Caution is urged with trying to implement this methodology, while I fully intend to offer this in a specific fashion in the future, there are several aspects to consider before attempting on your own. I have had a ridiculous amount of programming experience that goes back to DOS 3.3 and recently completed graduate level material in classes ranging from Advanced Python to Integrating Earth Science data with Quantum Processing. These are not simplistic workflows and minor variations can cause wild swings that must be corrected for. Most individuals would have to have an intimate knowledge of several hundred warrants to produce the results you are seeing along with a working use of Calculus, Integration, Economics and Finance. These are exciting results and they are being reproduced but it is not an arbitrary selection and if done incorrectly could cause unseen consequences.
Look for me in the future to do individual and series related articles as this methodology is hard-coded for consumption, Thanks for taking your time to make it to the end.
Quick Links to the rest of this article series as they are posted are available below:
- Trading your way to quick gains with a basket of warrants. (part 1 of 5)
- Trading your way to quick gains with a basket of warrants. (part 2 of 5)
- Trading your way to quick gains with a basket of warrants. (part 3 of 5)
- Trading your way to quick gains with a basket of warrants. (part 4 of 5)
What’s the catch Jeff?
It would be pretty great if you decided to SUBSCRIBE to our database so that you can begin finding warrants that fit your investment needs. More hours have been spent curating and updating the data than any other service available and we seek to give the largest collection of these securities for helping you make sound decisions based on leveraging your cash into bigger returns. That is, after all, the beauty of the warrant as an investment vehicle… Leverage.
The post Trading your way to quick gains with a basket of warrants. (part 5 of 5) first appeared on Common Stock Warrants.