An Update on the Stocklabs Oversold Signal Success

It was a week of wanton success for the Stocklabs mean reversion algorithms. This is just the second sequence of trades I’ve conducted using this system, one I deployed with options back in 2012 to great personal gain. The method is simple: upon a 12 mo oversold signal purchase a 33% position in TQQQ. The holding period is 10 days and during that period if the system flags OS again, make another 33% tranche purchase, extending the holding period another 10 days. What ended up happening this go around is 3 purchases spread out, with my sale scheduled for early next week.

This is my algo dedicated account inside Stocklabs, now +15,6% for 2022, +28.4% for the week. The purchase are below, alongside the actual oversold signals in the final table.

If it was up to my feelings, I would’ve sold the positions yesterday, but I didn’t because I’m adhering to rules. Going forward, our algorithms suggest weakness on Monday followed by strength.

The major caveat to all this is the specter of WW3, something the algorithms cannot detect in their analysis of market technicals and fundamentals.