Introducing the NIC Index


It is difficult to measure the market performance and evaluate each trader. It got me thinking, since stocks have the S&P500, the FTSE, TA100 and all that. What do we have for currency? There are some out there such as the AFX index, but to me that is not as appropriate or updated sufficiently. So why not create my own?


I started this idea by copying the most copied traders with only 1 criteria as at 17th January, portfolio must maintain currency of more than 70%. After which we just measure input the returns as per January 2015 and give each trader 20 points. (i.e. January 2015 the index starts with 1,000 or 20 x 50 traders). 

So put simply what are we using this for? The index just as a benchmark of returns.
Say a potential trader makes 7% is this good? What if a trader makes 7% but most people are making 10%. More importantly what if the trader lost 2% that month? But the market lost 5%. Doesn’t that mean the trader did well?


Nope may not be the best way to do this. But it’s what I've come up with. 

 

The purpose of this index will be to benchmark average performance of the selected traders and also to get a sense of how the market is doing.

 I do welcome any feedback or comments, so do leave your comments below. For the sake of simplify, i will not constantly rebalance the portfolio, but once it is changed you can read about here or sign up for my e-mail list and receive it directly in your inbox,  





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Zechariah Zheng, or any associated parties with the author of the website, cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing.

Zechariah Zheng, or any associated parties with the author of the website, in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Zechariah Zheng, or any associated parties with the author of the website, accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.