This strategy has been delivering returns so far for 2022 and is expected to continue to do so.
Invest R100,000 as a couple and get R342,000 back after 118 trading days.
•Every row on the above schedule is a strategy that we actively manage on a day-to-day basis. Refer to row one which illustrates an "Early Bird Strategy" in the 2022 market based on a 1% return on R11m in allowances which grows a R100,000 investment to +R110,000 per spouse. (It thus more than Doubles the invested capital to R320,000).
•With a 1% Early Bird strategy illustrated above, you trade with 100,000 to obtain the results in row 1 above. This strategy may suit investors, who do not want to wait, and who seek to withdraw cash on a daily/weekly/monthly basis.
•As the year progresses, we will increase the return required on days when returns are high so that the capital exceeds R320,000. We can customise a strategy to say, 1.1% which will yield ( R100k + R121k + R121k = R342,000). This customisation is illustrated in the middle panel of the schedule below.
•At the beginning and at the end of the year the markets are normally quiet, and we will wait for them to warm up to trade strategies that require higher yields. We need about 75 + 43 = 118 trading days out of 260 to execute this strategy.
•We discuss strategy options and once set we manage the execution to achieve the desired result. All trading is done in your name and funds are returned to your account every day. You can change strategies at any time. Yield peaks are unpredictable but they do happen and waiting for them is what the "Waiting Game" strategy does.
•REMEMBER: The yield is expressed as a % of the allowance, it is not time based, it is about accumulating profits.
2022 Arbitrage Waiting Game Trading Strategy - Read more on this strategy on our blog.
This strategy has been delivering returns since mid February 2022
and is expected, intermittently, to continue to do so.
•Row 5 illustrates the 2% "Waiting Game" strategy that calls for an average yield (ROI) of 2% on the R11 million allowance for both partners. This "Waiting Game" strategy can grow the initial capital of R100,000 to R540,000
• We recommend that clients kick off trading R100,000 with a 2% "Waiting Game" strategy for 2022. This said the minimum is an investment of R50,000 and ROI strategies can be customised to suit a client's preference.
•As the year progresses, we will increase the return requirement on days when returns are higher so that your capital exceeds R540,000 ( R100k + R220k + R220k).
•We only need 57 + 27 = 84 trading days out of 260. It’s cherry picking & it started to deliver in mid February!
•We discuss strategy options and once set we manage your strategy on your behalf. All trading is done in your name and funds are returned to your account every day. You can change strategies at any time. Yield peaks are unpredictable.
In the table above we illustrate the impact of fixed trading costs on profitability. The middle panel is used to bennchmark results of a 2% "Waiting Game" strategy and a 1.1% "Early Bird" strategy. The fixed interbank SWIFT fee is R500 no matter the amount transferred between banks. Thus for R50,000 a R100,000 2% return reduces to 1.5% or increases with a R1 million investment to 2.45% - see the panels on the left and right of the 2% example. Likewise, the 1.1% strategy reduces to 0,6% or increases to 1.55%.