Weekly Algorithm Review: 01/14/2023 to 01/20/2023

Algorithm Performance This Week

Sector Neutral: -0.18%
Variable Sector Neutral: -0.6%
Overall Market: -0.79%
Market Neutral: -1.03%
Base Algorithm: -1.21%
Market Neutral: -1.28%
Long Term Portfolio: -1.85%

This was a strong week for the HK algorithm. The base algorithm outperformed the long term portfolio by 0.64%, meaning that our technical analysis was successful this week.

The long term portfolio has had another rough week of performance. I’ve spoken with our long term analyst, and for the time being, we’re standing by it. The portfolio has a fairly long time horizon, and based on a scenario-analysis of the next year, we’re expecting it to beat the market in most possible cases.

This is going to be a short report. From the technical side, things mostly went as expected this week. The sole unusual piece of data is that variable market neutral performed slightly under the base algorithm, whereas market neutral outperformed it (we generally expect the variable algorithms to fall in between the base algorithm and their non-variable counterpart).

That said, as we’ve seen previously, the variable algorithms aren’t an exact science. As variable market neutral has generally fallen in the correct range, I don’t necessarily think this is a problem. In all likelihood, it’s not a sign of a negative trend.