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- Herausgeber: epubli
- Kategorie: Fachliteratur
- Sprache: Englisch
Why stock market? Marc Redwitz has been a passionate daytrader since 2007 and can now live on his profits. With his books, the author wants to convince all people how easy it is to make money on the stock market. From good returns on the investment to a monthly basic income — many things are possible with his strategies. Stay relaxed during the ups and downs of the markets and trust in the fully automatic trading robots. Stop worrying!
Sie lesen das E-Book in den Legimi-Apps auf:
Seitenzahl: 192
Veröffentlichungsjahr: 2019
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Financial independence as Christmas present
Titel SeiteIntroduction of the AuthorIntroduction of Schmitt Trading LtdPurpose of this bookThe matching Christmas presentExample 3Why a trading account?Why Schmitti?Introduction of the individual robotsIntroduction of Schmitti1Introduction of Schmitti2Introduction of Schmitti3Introduction of Schmitti4Presentation ColorchangerPresentation of DAXCCH4Introduction of GOLDCCH4Introduction of EURUSDCCH4Introduction of GBPUSDCCH4Introduction of EUBUNDCCH1Introduction of DOWCCM5Introduction of SP500CCD1Introduction of EU50CCD1Drawdown phasePosition sizeWith the stock market savings plan to successOpen a trading accountRent a robotMonthly basic incomeHow did we testIntroduction Stock Market Robot SystemStock Market Robot System 1.0Stock Market Robot System 2Stock Market Robot System 3.0Stock Market Robot System 4.0Stock Market Robot System 5.0Stock Market Robot System 6.0Stock Market Robot System 7.0Stock Market Robot System 8.0Performance Stock Market Robot System 8.0Performance Stock Market Robot System 9.0Performance Stock Market Robot System 10.0Performance Stock Market Robot System 11.0Performance Stock Market Robot System 12.0Stock market basicsMoney market accountStock exchangeExchangeStock marketStockbrokerBroker-dealerStock traderDay tradingTrading strategyContrarian investingAlgorithmic tradingGlossaryTrading accountSummaryStep 6The work including all its parts is protected by copyright. Any use is prohibited without the consent of the publisher and the author. This applies in particular to electronic or other duplication, translation, distribution and public disclosure.
Bibliographic information of the German National Library: Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; Detailed bibliographic data are available on the Internet at http://dnb.d-nb.de.
Imprint
Text: © 2019 Copyright by Marc Redwitz
Translation:© 2019 by Schmitt Publishing
Cover:© Copyright by Schmitt Trading Ltd
Publisher:Schmitt Trading Ltd
E-Mail:[email protected]
Website:www.schmitt-trading.com
Print:epubli Berlin, Germany
Introduction of the Author
My name is Marc Redwitz, I was born 17. March 1979 in Konstanz, Germany. I was raised at Lake Constance in the very south near the Swiss border and lived in Erfurt, Thuringia for quite a while.
I have been dealing with the stock exchange since 2006 and have been trading as a part-time job since 2007. Since October 2018, I have been developing automatic trading systems which I rent or sell to customers via the company Schmitt Trading Ltd.
Background
Since mid 2006, I have been interested in investment shares as a means of saving and I started buying investment funds on a regular basis.
In February 2007, I felt that the continued bull market may come to an end and I sold all investment shares with a profit. The first mini crash on the stock market came 27.02.2007 - exactly one week after I had sold everything.
Meanwhile I had opened my first trading account with CMC markets, ordered a CFD newsletter as a blueprint and started trading directly at the stock exchange.
I experienced the mini crash of 27.02.2007 on my second day at the stock exchange and was short with 20 CFDs on the German DAX. In this way, I could have doubled my capital from 1000 Euros to 2000 Euros within 8 hours if I had closed the positions in the evening.
The next morning, I woke up with my first margin call and the positions were closed via stop and with a loss.
I continued trading without any concept and was liquidated on 26.04.2007. The year 2007 ended with a net loss of 1000 Euros.
At the beginning of 2008, I felt that the big crash may start now. Consequently, I sold 1 DAX CFD with GCI Trading at a trading account capital of 28.55 Euros. The crash started and I closed the position with 230 points or 1150 Euros profit. If I had held the position until October, I would have made a profit of 20,000 Euros. If I had invested 1000 Euros instead of 28.55 Euros and sold 10 CFDs, I would have won 200,000 Euros in 2008. As a result, there was only a lot of buying and selling, overtrading and a net loss of 1000 Euros.
During new year's Eve 2008/2009 I was more than ever determined to become a professional CFD trader and trade my way to financial freedom.
Introduction of Schmitt Trading Ltd
Schmitt Trading Ltd is an international software company and develops trading robots.
These trading robots are programmed as specified by the customer, tested and delivered.
Any changes are possible any time and are calculated as inexpensive update.
From mid 2019, it is also possible to rent the trading robots developed by Schmitt Trading Ltd.
Please contact us by e-mail in order to ask for details, prices and conditions.
We are looking forward to get to know you!
Purpose of this book
With the present book, I would like to explain to you how you can earn money on the stock market without any prior knowledge and without a lot of time.
As described in my CV, it took me over 10 years to acquire the basics of successful trading.
The goal for me was never to generate a little more return than on the money market account. I wanted to achieve financial independence right from the start and then live my life in freedom because I no longer have to work.
You can go the same way - we call it the path of pain because of hurting losses - and then have at least 6000 hours of active trading on the stock market.
In addition, there are psychological problems such as dealing with pressure, false expectations, high losses, discomfort, arrogance, fatalism and repeated failure.
You will make many mistakes and pay dearly.
But now the good news: You can save yourself all this, if you immediately turn to the automated stock market trading.
That's why I advise you to read this book carefully, to understand the context, and then take your chance by acting!
In this sense: Enjoy reading! I wish you a successful future in financial independence!
The matching Christmas present
Every year the same question comes up: what should I give for Christmas? Or: what do I want?
If you feel like me and many other people, then I long for independence, especially financial independence.
If, like many others, you are stuck in a hamster wheel and everything is too much for you, then just wish yourself financial freedom at Christmas.
Imagine you could have a certain amount at your disposal every month and you could work less or stop working!
Schmitt Trading Ltd rents trading robots to investors who want to achieve high returns on a purely passive investment.
On the following pages, I will present all robots and some different robot combinations.
Choose the combination you like best and give it away for Christmas or have it given to you for Christmas.
Your financial independence is closer than you think!
Please take a close look at the following graphics and statistics. If you had given yourself a present of 2000 € last year at Christmas and started with a 50% yield robot, you would be 1000 € richer now.
I assume that the robots will make profits again next year. I want to encourage you to design your future on your own with the following examples.
You can interpret the table with the months as a 2-weekly account statement and the graph as a yield curve for 2019.
Example 1
Broker ActivTrades, Start capital 4000 Euro,
Strategy: SMRS 2.01
Example 2
Broker XTB, Start capital 500 €
Strategy SMRS 1.03
Example 3
Broker OctaFX, Start capital 100 €
Strategy SMRS 1.02
Why did noone tell me that...?
- ...I don't receive as much pension as stated on my annual pension notice.
- ...I must (fully) pay tax on my pension
- ...I have to deduct health insurance contributions from my pension.
- ...in the event of a divorce, I may have to surrender pension points
- ...the maximum pension is capped at 3000 €
- ...the average 2019 pension for men is 1095 € (West Germany) and 1198 € (East Germany) and for women 622 € (West) and 928 € (East), respectively
- ...the inflation rate for the cost of living is rather 10% instead of 2% per year
- ...I am acutely threatened by poverty in my old age or cannot maintain my standard of living
- ...there is a gap between my last salary and the pension
- ...my wage/salary is not only intended for consumption, but also for building my private retirement plan
- ...my current account does not yield any interest
- ...my savings account does not yield a return
- ...my money market account bears so little interest that it is not even enough to compensate inflation
- ...government bonds are not safe investments because they are subject to price fluctuations
- ...the price losses for individual stocks can amount to up to 100 %
- ...classic ETFs only buy shares, but do not include a short strategy
- ...there are 25-year sideways phases on the stock market, i.e. no long-term price increases are possible.
- ...with the right trading strategy it is possible to earn money even in sideways phases or falling markets
I tell you now and explain to you later in this book how you can generate a decent return through automated stock exchange trading in any market situation.
I expect a huge stock market crash and then to go into a long sideways phase. Should this scenario occur, none of the classic investment strategies will help to protect your assets and build up capital for the twilight years.
Why a trading account?
As I write these lines (September 2019), interest rates in the euro area remain at historically low levels.
A current research of the offered interest rates on overnight money accounts results in 0.5-0.9 % p.a. at new opening.
This means that an investment of 1000 € only yields a maximum of 10 € interest per year.
Nobody can live from that or develop a fortune.
Other financial analysts advise blind investing in stocks or ETFs that contain as many different stocks as possible.
I take a critical view of this advice, as investing in shares always means only buying.
As a trader, I can only emphasize again and again how important it will be in the coming period of high volatility to be able to execute in both directions - buying and selling.
This can only be done through a portfolio of short ETFs or a trading account.
Although (almost) no interest is paid on the savings account, the deposited amount remains relatively securely available through the deposit guarantee. Interest is only paid on the overnight account at longer intervals (monthly, quarterly or annually), which is why the account balance always remains approximately the same.
For the trading account, the deposit guarantee applies in the same way, i.e. the paid-in capital is relatively secure.
The main difference to the savings account is that all kinds of securities are traded on the trading account. These securities as well as currencies or precious metals are subject to the so-called price formation, i.e. their value is permanently redefined by supply and demand. The price of each individual financial product is therefore subject to constant fluctuations. Investing in such financial products causes daily fluctuations in the trading account balance — both positive and negative.
The challenge for classic savers is therefore to get involved in the stock market adventure and to tolerate certain fluctuations in the trading account.
This requires some practice and a lot of patience, but it usually pays off with high returns!
I fear that the Brexit — Britain's withdrawal from the EU — will make it more difficult to open a trading account. My guess is that the EU will further tighten regulation on financial products, as Britain's positive influence on free markets vanishes.
Furthermore, I suspect that the UK will reduce regulation for financial products very far in order to further strengthen its financial center in London. It may well happen that EU citizens will no longer be able to open trading accounts in Britain in the future, as this is already the case with US citizens.
Why Schmitti?
Imagine an acquaintance telling you about an ingenious stock exchange trading system with which he regularly earns so much money that it is enough for his daily life.
Imagine further that this acquaintance does not have to do anything for it, so that the account balance on his trading account continues to rise.
He explains that a friendly trading robot named Schmitti does all the work for him.
Schmitti was programmed in such a way that he reliably recognizes upcoming trend changes on the stock exchange in advance and then buys or sells them.
Schmitti does not sleep, Schmitti never gets tired. Schmitti is neither bored by the constant ups and downs of the stock market nor does he feel emotions like fear, greed or exaggerated euphoria.
Schmitti reacts only to his programmed algorithms and executes them reliably.
And that 24 hours a day, 365 days a year.
Imagine further that there is the possibility that you could break out of your daily routine and reach a life of financial freedom.
Perhaps you wish to leave your own social class and ascend.
Do you want to make it from the lower class to the middle class?
Or from the middle class to the upper class?
The only class Schmitti cannot help is the upper class, because they are already at the top.
For everyone else, this is your chance to change your life!
Take your chance and get active now!
Introduction of the individual robots
Our trading robots are fully automated trading systems which buy and sell the German DAX Future or other instruments on behalf of the investor.
Meanwhile, our robots can cover all asset classes such as equities (DAX), bonds (Bund), currencies (EURUSD), and precious metals (Gold).
Introduction of Schmitti1
Schmitti1 is the oldest of our robot family and the enfant terrible. He is slightly hyperactive and constantly looking for action. As soon as the DAX moves up a bit, he buys. If he sees the DAX fall on the 15-minute chart, he sells.
On good (or bad) days he can open and close four to six positions.
We all love Schmitti1 for his creativity, but sometimes we're a little stressed out by his wild actions that lead to a drawdown that we all have to endure.
That's what distinguishes Schmitti1: After he has messed up, he stands by his deeds and compensates the losses by serial wins...
The Schmitti 1 robot is a short-term trading program that buys and sells on the 15-minute chart.
Evaluation Schmitti1 in 2019
Expert advisor: Schmitti1_EA
Symbol: Ger30Sep19
Period: M15
Testing period: 21.01.2019 – 31.10.2019
Initial deposit: 2000.00 €
Total Net Profit: 1361.00 €
Balance drawdown maximal: 667.00 (18.47 %)
Equity drawdown maximal: 683.00 (18.85 %)
Yield curve Schmitti1
Estimated yearly return Schmitti1:
Initial deposit: 2000 €
Total Net Profit: 1600 €
Yearly return: 80 %
Introduction of Schmitti2
Schmitti2 is a robot that often does not know exactly what he wants.
Sometimes he thinks the market rises and buys the Dax.
Then he sees "Oops, the market is falling" and closes his long position again to go short.
But once he has recognized a trend, he follows it until it comes to a trend reversal.
Since this robot is not set to a limit, it can theoretically make infinite profits or until the trend reverses.
Unfortunately, Schmitti2 also experienced a long drawdown phase:
Year high 2019 reached on 18.04. with 3341 €.
Then continuous loss until 1.10. at 2032 €.
Since then Schmitti2 has recovered, but has not yet reached a new high for the year.
Schmitti 2 is a medium-term robot trading on the 4-hour chart.
Evaluation Schmitti2 since 2018
Expert advisor: Schmitti2_EA
Symbol: Ger30Sep19
Period: H4
Testing period: 01.01.2018 – 22.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 1342.00 €
Balance drawdown maximal: 1309.50 (32.78 %)
Equity drawdown maximal: 1427.00 (34.96 %)
Yield curve Schmitti2
Estimated yearly return Schmitti2:
Initial deposit: 2000 €
Total Net Profit: 700 €
Yearly return: 35 %
Introduction of Schmitti3
Schmitti3 is the youngest offspring of our robot family and a very dear one. He is the dormant pole of the family and acts very deliberately in the DAX daily chart.
This robot reliably detects trend changes in the DAX in advance. When he sees the DAX fall, he sells, when he sees an upward movement coming, he buys.
Because the stop is relatively tight, he is sometimes stopped out. However, due to his wide goal, he can even compensate two mistrades in a row by one profit trade.
Schmitti 3 is long-term oriented and trades in the daily chart.
Evaluation Schmitti3 since 2018
Expert advisor: Schmitti3_EA
Symbol: Ger30Dec19
Period: D1
Testing period: 01.01.2018 – 22.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 4494.00 €
Balance drawdown maximal: 725.00 (25.51 %)
Equity drawdown maximal: 947.50 (31.36 %)
Yield curve Schmitti3 since 2018
Estimated yearly return Schmitti3:
Initial deposit: 2000 €
Total Net Profit: 2400 €
Yearly return: 120 %
Introduction of Schmitti4
Schmitti4 is the most dreamy of our robot family. He is slightly apathetic and can't be disturbed by anything. Schmitti4 is active on the currency market and buys and sells the currency pair Euro/US Dollar.
The Schmitti 4 robot is a medium-term trading robot that buys and sells the EURUSD in the 4-hour chart.
Evaluation Schmitti4 since 2018
Expert advisor: Schmitti4_EA
Symbol: EURUSD
Period: H4
Testing period: 01.01.2018 – 22.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 2179.58 €
Balance drawdown maximal: 606.55 (21.51 %)
Equity drawdown maximal: 686.41 (24.13 %)
Yield curve Schmitti4
Estimated yearly return Schmitti4:
Initial deposit: 2000 €
Total Net Profit: 1000 €
Yearly return: 50 %
Presentation Colorchanger
In June 2019, our new robot series based on the Colorchanger indicator was added.
Presentation of DAXCCH4
The DAXCCH4 robot also trades in the H4 chart of the DAX Future, but works on a different basis than Schmitti1-3.
Unfortunately, the DAXCCH4 robot also experienced a long drawdown phase:
Year high 2019 reached on 18.04. at 3373 €.
Then continuous loss until 29.05. at 2251 €.
Since then the DAXCCH4 robot has recovered and made a new high for the year on 8.11 at 3555 €.
The DAXCCH4 robot is a medium-term robot trading on the 4-hour chart.
Evaluation DAXCCH4 in 2019
Expert advisor: DAXCCH4_EA
Symbol: Ger30Sep19
Period: H4
Testing period: 01.01.2019 – 22.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 1200.50 €
Balance drawdown maximal: 891.00 (23.70 %)
Equity drawdown maximal: 1003.00 (26.47 %)
Yield curve DAXCCH4
Estimated yearly return DAXCCH4:
Initial deposit: 2000 €
Total Net Profit: 1200 €
Yearly return: 60 %
Introduction of GOLDCCH4
The GOLDCCH4 robot trades in the H4 chart of the gold price.
Evaluation GOLDCCH4 in 2019
Expert advisor: GOLDCCH4_EA
Symbol: Gold
Period: H4
Testing period: 01.01.2019 – 31.10.2019
Initial deposit: 2000.00 €
Total Net Profit: 682.74 €
Balance drawdown maximal: 648.48 (23.63 %)
Equity drawdown maximal: 738.95 (26.48 %)
Yield curve GOLDCCH4
Estimated yearly return GOLDCCH4:
Initial deposit: 2000 €
Total Net Profit: 800 €
Yearly return: 40 %
The GOLDCCH4 robot also had a severe drawdown phase in 2019:
The preliminary high for the year was reached on 03.07.2019 at 2744 €.
This was followed by a drawdown phase from 03.07.2019 to 20.09.2019.
The interim low of 20.09.2019 was 2096 €.
The maximum drawdown was 648 € and thus around 23 %!
This drawdown is no problem if the robot was started on 01.01.2019.
In this case the drawdown was starting from the previously made profits.
Consequently, the account balance never fell below the starting capital of 2000 €.
After completion of the drawdown phase, the robot immediately picked up speed again and continues to make profits.
Introduction of EURUSDCCH4
The EURUSDCCH4 robot trades in the H4 chart of the EURUSD chart.
Evaluation EURUSDCCH4 in 2019
Expert advisor: EURUSDCCH4_EA
Symbol: EURUSD
Period: H4
Testing period: 01.01.2019 – 15.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 795.40 €
Balance drawdown maximal: 221.47 (7.87 %)
Equity drawdown maximal: 266.58 (9.33 %)
Yield curve EURUSDCCH4
Estimated yearly return EURUSDCCH4:
Initial deposit: 2000 €
Total Net Profit: 900 €
Yearly return: 45 %
Introduction of GBPUSDCCH4
The GBPUSDCCH4 robot trades in the H4 chart of the GBPUSD chart.
Evaluation GBPUSDCCH4 in 2019
Expert advisor: GBPUSDCCH4_EA
Symbol: GBPUSD
Period: H4
Testing period: 01.01.2019 – 31.10.2019
Initial deposit: 2000.00 €
Total Net Profit: 1160.24 €
Balance drawdown maximal: 540.53 (19.66 %)
Equity drawdown maximal: 587.17 (21.15 %)
Yield curve GBPUSDCCH4
Estimated yearly return GBPUSDCCH4:
Initial deposit: 2000 €
Total Net Profit: 1400 €
Yearly return: 70 %
Introduction of EUBUNDCCH1
The EUBUNDCCH4 robot trades in the H1 chart of the EUBUND chart.
Evaluation EUBUNDCCH1 in 2019
Expert advisor: EUBUNDCCH1_EA
Symbol: EUBUND
Period: H1
Testing period: 01.01.2019 – 15.11.2019
Initial deposit: 2000.00 €
Total Net Profit: 1395.00 €
Balance drawdown maximal: 398.00 (11.25 %)
Equity drawdown maximal: 498.00 (13.77%)
Yield curve EUBUNDCCH1
Estimated yearly return EUBUNDCCH1:
Initial deposit: 2000 €
Total Net Profit: 1600 €
Yearly return: 80 %
Introduction of DOWCCM5
The DOWCCM5 robot trades in the 5-minute-chart of the Dow Jones Industrial Index.
Evaluation DOWCCM5 in 2019
Expert advisor: DOWCCM5_EA
Symbol: Dow Jones Industrial
Period: M5
Testing period: 01.01.2019 – 31.10.2019
Initial deposit: 2000.00 €
Total Net Profit: 1040.01
Balance drawdown maximal: 1410.51 (48.53 %)
Equity drawdown maximal: 1480.68 (49.85 %)
Yield curve DOWCCM5
Estimated yearly return DOWCCM5:
Initial deposit: 2000 €
Total Net Profit: 1250 €
Yearly return: 60 %
Introduction of SP500CCD1
The SP500CCD1 robot trades in the daily chart of the Standard & Poor‘s 500 Index. The S&P 500 measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market.
This robot is aimed at people who know what trading is about. The SP500CCD1 is suitable for investors who accept a high risk level: when you trade this system with the position size 0.1, a mistrade means a loss of 100 €!
This robot is also suitable for investors with very low capital: when you trade this system with the position size 0.01, a mistrade means a loss of 10 € only so that 200 € of capital should be enough.
Evaluation SP500CCD1 since 2018
Expert advisor: SP500CCD1_EA
Symbol: S&P500
Period: D1
Testing period: 01.01.2018 – 31.10.2019
Initial deposit: 2000.00 €
Total Net Profit: 4363.39 €
Balance drawdown maximal: 414.60 (18.16 %)
Equity drawdown maximal: 482.04 (20.64 %)
Yield curve SP500CCD1
Estimated yearly return SP500CCD1:
Initial deposit: 2000 €
Total Net Profit: 2400 €
Yearly return: 120 %
Introduction of EU50CCD1
The EU50CCD1 robot trades in the daily chart of the Euro Stoxx 50 Index. The EURO STOXX 50 is a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group. According to STOXX, its goal is "to provide a blue-chip representation of Supersector leaders in the Eurozone". It is made up of fifty of the largest and most liquid stocks. The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid products in Europe and the world.
This robot is aimed at people who know what trading is about. The EU50CCD1 is suitable for investors who accept a high risk level: when you trade this system with the position size 0.5, a mistrade means a loss of 260 €!
This robot is also suitable for investors with very low capital: when you trade this system with the position size 0.01, a mistrade means a loss of 10 € only so that 200 € of capital should be enough.
