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Triple Digit Returns In 2014 For The World Cup Portfolio

MarketClub's model portfolio section showcases three portfolios using MarketClub's strategies that you can follow and see how well they are doing. We provide you with all the entry and exit points for each market in each portfolio so there is nothing to second guess.

World Cup Portfolio

The final results are in and once again the World Cup portfolio (WCP) knocked it out of the park with triple digit returns. This is the third time in 7 years that this portfolio has chalked up some of the best returns in the investment world. We have continually published the daily signals and the results for this portfolio since 2007, so this year's results are no fluke.

The big winner in 2014 was, of course, being short crude oil. This strategy produced spectacular results and was responsible for almost half of our profits for the entire portfolio. With gains of $38,130, representing a 76% return on total invested capital, this commodity was a standout, just trading one contract of crude oil. Next up was gold, which was responsible for producing a return of $7,793, equaling a 15.5% return on invested capital.

WCP Cumulative 2007 thru 2014

Total capital needed to trade the World Cup portfolio is $50,000. (Remember, we are not brokers nor do we manage money.)

Every single market showed a profit in 2014, however, not every single market showed a profit in every quarter. This is why it is so important to be diversified as it lowers your risk profile while raising you profit profile.

Here is the quarterly market breakdown per share: [Read more...]

What's More Volatile, Stocks Or Commodities?

If you said stocks, you'd be right. There's a big misconception that commodities or futures are more volatile and risky than stocks. The truth is, what makes commodities or futures appear risky is the leverage factor. You only have to margin up a small amount of capital, usually less than 5%, to control a large amount of capital. What that means is when the market moves even a small amount, you get a bigger return, or in some cases a bigger loss, on your money because of leverage. If you put up the whole value of a commodities or futures contract, you effectively de-leverage your investment and at the same time lower your risk and return.

For example, say you want to buy 100 ounces of gold. At the current price, you would have to pay $123,500 and you would own the gold. Instead, you could buy 1 futures contract of gold worth $123,500 and only margin up $4,400. Now let's say we have a $10 move in gold. On 100 ounces that would be worth $1000. As you can quickly see, the return on $4,400 is a heck of a lot higher than the return on $123,500 if you owned the gold outright. Which would you rather have, close to a 25% return on your margin on 1 futures contract, or have a $123,500 tied up in physical gold and see a return of less than 1%?

That, my friends, is why commodities or futures are interesting and can be very profitable when you approach the market with discipline. Naturally, leverage slices both ways and you could lose just as fast as you make money. The key here is to be diversified like our World Cup Portfolio.

Here's the 6 individual markets of the World Cup Portfolio shown quarter by quarter. As you can see, not every market made money every quarter, but combined every quarter was profitable. This underscores the power of diversification and disciplined trading. [Read more...]

How To Beat These Billionaire Hedge Fund Managers

If beating the billionaire hedge fund mangers seems like a dream to you, then I am about to give you a reality check. Before I go there, let me share with you some of the results of these billionaire hedge fund managers this year. I'm only going to give you the top three, as they have achieved outstanding results.

Let's start off with the number one hedge fund manager of the year. I'm sure you're familiar with this name, as it seems to be in the news every week. I'm talking about Carl Icahn. Icahn has produced an incredible return of 48.96% year-to-date. That truly is an amazing return, but he's not alone. Next up is David Einhorn with a return of 41.37% YTD. Bringing up the rear with a very impressive 27.95% return YTD is Bill Ackman.

I think we can all agree that these three brilliant billionaire fund managers have all produced outstanding returns so far this year. I congratulate all three hedge fund managers. It's even more remarkable when you consider that the stock market hasn't had much sustained movement to the upside this year. In fact, just recently most of the major indices were flat to lower on the year.

This leads me to the main lesson at hand... with the right tools you can surpass the returns of these hedge fund all-stars. [Read more...]

Dissecting MarketClub's World Cup Portfolio

Today we are going to take a look at MarketClub's World Cup Portfolio (formerly World Commodity Portfolio) that has been tracking six markets for the past three years. I think it is fair to say that the last 36 months have presented one of the most challenging trading environments in recent memory.

So how do we do it?

I put together this very short video which is only 1 minute 45 seconds long and gives you all the information that you need to decide whether or not this approach is one that could work for you. Bear in mind that the World Cup Portfolio is a leveraged portfolio unlike our "Perfect Portfolio" which is not leveraged.

The video can be viewed right here.

Please give us your thoughts and comments on our blog. I think you will find this video very informative and educational.

All the best,

Adam Hewison
President of INO.com
Co-founder of MarketClub

Q1: Gold vs. "World Cup Portfolio"

We began Q1 with high hopes of keeping our winning streak alive, just as we had finished out the year on a very positive note with some strong gains in Q4 of 2009.

Q1 proved to be a challenging quarter for the "World Cup Portfolio." Out of the six markets we track, we had winning positions in four markets (that's the good news) and losing positions in the other two.
However, the big disappointment in Q1 was the gold market which produced our biggest quarterly loss of any market since we began tracking the "World Cup Portfolio."

The main reason for this loss was the choppy, trend-less action in the gold market. In the eleven quarters we have been tracking gold, we have made money in eight of those quarters. This is not the time to abandon trading gold, rather it is a time to continue with our game plan and "Trade Triangle" approach that has been so successful for this portfolio. Furthermore we have never had back-to-back losing quarters in gold.

On the brighter side, the grain markets proved to be resilient and just the ticket as corn, wheat, and soybeans all put in positive performances. The only other market to put in a negative performance in Q1 was crude oil. [Read more...]

How Did the World Cup Portfolio Fare in Q4?

The last quarter of '09 proved to be the sweetest quarter for the year for a World Cup Portfolio. For the quarter, we had a dollar return of $16,041.75 before commissions, which is approximately a 32% return on capital. The World Cup Portfolio (WCP) needs $50,000 to run and is based on double margins for every market. Double margins mean that by depositing twice the amount of money that is required by the exchanges, you are effectively de-leveraging the instrument you are trading. We consider this a more conservative approach to the commodity markets.

The Q4 results have proven to be very successful for MarketClub members using this strategy. With a 90% win rate, the World Cup Portfolio stands out as being an excellent investment vehicle over the long-term. It is interesting to note that the only market that has scored successfully in every quarter is the wheat market. The other five markets: corn, soybeans, crude oil, gold and the dollar index have all come in between the 80 and 90% range.

[Read more...]

Q3 Results ... Best Of The Year So Far

We've had numerous requests for our Q3 numbers and we apologize for getting them published so late. It's not that they are bad, in fact, they are our best quarterly numbers so far for the year. Q4 looks to be stellar and we're looking forward to sharing those numbers with you in the early part of 2010.

So how do we do in Q3?

As you may or may not know we track six markets and have been doing this since Q3 of 2007. The six markets are: corn, wheat, soybeans, crude oil, gold and the dollar index.

[Read more...]

3 Potential Mega Trades In Q4

It seems to me that we are at an inflection point in the economy. The government has blown pretty much all of its money and the economic recovery and the economy is still sputtering along.  No surprise there.

So what's going to happen? I believe that we'll have another economic downturn which is going to push the dollar to new lows, push gold to new highs, and push the equity markets back down to their March lows.

[Read more...]

Q2 results for MarketClub's "Trade Triangle" Technology

As we are in the middle of earnings season for most stocks, I thought it appropriate that we report our own results for Q2 of 2009.

We have been tracking the profits and losses of MarketClub's "Trade Triangle" technology for the past 8 quarters for corn, wheat, soybeans, crude oil, gold and the dollar index.

We started this hypothetical portfolio with $50,000, which is approximately twice the margin required to trade the above markets. The reason behind that is that we de-leverage every futures markets and this allowed us to continue to take signals with little or no pressure. The other key for our success is that we are diversified into six markets. Some may argue that the grain markets do not provide true diversification, but I would not argue with that point.

See Q2 results on next page.

[Read more...]

Quarterly chart changes give hints to future trends

At the end of each quarter, I like to see how the market has performed in comparison to the last quarter. Seeing as we are nearing the end of Q2 of 2009, we are starting to crunch the numbers.

So here goes:

Data for the end of Q2 is based on intra-day prices traded on Friday the 26th, of June.

[Read more...]

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