24 Jan 2024 Ludicrous Returns Stock Model Update

Discussion in 'Trade Journals & Stock Tips' started by LudicrousReturns, Jan 25, 2024.

  1. LudicrousReturns

    LudicrousReturns Member

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    Hello,
    Since I provided the stocks that have triggered buys from my technical analysis stock model, I thought it would only be fair to share my stop sell orders. Especially given the volatility that occurred today in a lot of stocks. Below is a table of the Ludicrous stock model holding and the stop buy.

    A high level overview of applying the Ludicrous Returns stock model is to:
    1. Make a stock list of stocks to watch to buy. Use the model to assign a category to the best of the best stocks on a watch to buy category.
    2. Chart watch to buy stocks weekly. Enter specific parameters per the stock chart. The model will trigger a signal to buy when all the buy requirements are met to show the stock has high potential to grow. As a stock becomes close to a buy trigger, chart a select few stocks daily after market close.
    3. For stocks that are current holdings, chart weekly and update key input parameters from the stock chart. The model will output a stop sell price that is updated weekly if update is necessary. The process is to update the stop sell orders.

    The Ludicrous Returns stock model was developed from patterns found to predict on an extensive data analysis conducted on over 1,000 stocks from 1970 – 2020. The patterns found to predict consistently over the 50-year period over stocks of all market caps were transformed into model logic. A back test was conducted to test the model ability to screen, buy and sell stocks and earn good performance vs. the market.

    2007 – 2020 simulation test: Each year, 500-750 stocks were screened by the model. Model held an average of 99 stocks (top 15%). In some years, the model moved completely into cash if there were no stock opportunities, such as in 2008.
    2007 – 2020 average annual return: 44.5%
    Grew 10K simulated investment into $ 1.5 million in 14 years.

    This model is not a day trading model. I developed it for people to growth wealth and keep their day job. There’s still plenty of opportunity to make good money without quitting your job and staying glued to several screens each day.

    I explain how the model works and how to use the model in my book, Ludicrous Returns vs. the Market.

    At any rate, below is the stop sells updated. DWAC had some major volatility as expected with a more than double at the peak yesterday since last buy trigger that occurred on 1/17 (where transaction following the model purchased on Thursday 1/18). Urgent action: It is important to enter a stop sell for DWAC, my model output suggests a stop sell of $ 36.27. It will likely trigger a sell at tomorrow’s market.

    I will try to provide regular updates showing my model output updates. For the record, I invest all of my capital to the model since I finished developing it last year.

    Happy investing,
    Joseph Furnari – Ludicrous Returns
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    Last edited: Jan 25, 2024

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