Merlin Strategy Performance for April 2020

Below is a performance summary for our Merlin trading strategy for the month of April 2020, net of transaction costs. To learn more about the strategy and to follow along in real-time with its trading signals, please visit the Merlin strategy page.

Merlin Performance for April

Strategy April Year to Date
Merlin Margin +0.73% -10.61%
60/40 Benchmark +7.73% -1.20%

See Performance Disclosures: Monthly Performance.


Merlin Closed Trades in April

Closed Trades Return on Signal R-Multiple


Performance Commentary

Merlin enjoyed a rally along side the market for the month of April, however it clearly lagged the romping and stomping averages which posted their best monthly return in 33 years.

This initial lag is expected behavior for the strategy which we’ve seen time and time again over long backtests. Because the system has been in “risk management mode” during the markets meltdown just weeks earlier, it takes a little extra convincing before Merlin returns to its normal buying habits.

There were zero closed out trades this month which goes to show how quiet things have been.

Final thoughts

After successfully mitigating the drawdown and volatility from March, a slow ramp up back into risk on mode is to be expected. May looks like it’s going to be a more active month for Merlin and I would expect some new positions to join the portfolio.

If you’re looking for an evidence-based strategy for swing trading individual stocks and ETFs on an end of day closing basis, check out the details behind Merlin here.

Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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