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A data-driven investment corporation
A data-driven investment corporation
117% Returns Since 2023
117% Returns Since 2023
2023 53%
2024 31%
Premium Traders has returned an average annual return of 42% since inception.
*Returns are net of all fees, expenses and corporate taxes.
Monthly Returns Since 2023
Monthly Returns Since 2023
Our average monthly return is 2.4%
RISK MANAGEMENT IS THE CORNERSTONE OF OUR BUSINESS
RISK MANAGEMENT IS THE CORNERSTONE OF OUR BUSINESS
A few ways we manage our trading risk
A few ways we manage our trading risk
Options trading can be risky. It is imperative to know what to expect for maximum loss, maximum profit, and the likelihood of winning and losing. Testing our strategies against historical data allows us to quantify those numbers as best we can. Maybe traders lose money trading options because they don't truly understand the risk/reward potentials.
We make many small trades to reduce the impact of any one loss.
We avoid trading on days we identify as high risk.
We minimize exposure to individual stock risk by trading the S&P 500 Index as a whole.
Many of our trades are opened and closed the same day, reducing overnight risk.
Stop loss orders automatically exit some trades if they reach their loss threshold.
Our trades are focused on the highly-liquid S&P 500 Index.
Data Driven Trade Modelling
Data Driven Trade Modelling
Our investment process is based on advanced backtesting models and volatility analysis. We have access to the full history of S&P 500 options pricing, from 2013 to present, on a minute-by-minute basis.
By no means can we predict what will happen in the future, but testing historical data gives us insight into what might happen under various market conditions.
Although the company was only established in 2022, we used the historical data to see how our strategies may have performed over the last 6 years. In this example, the backtest shows an average annual return of 31% (yellow line), compared to the overall US market (blue line) annual return of 12%.
These tests also help us understand how our strategies perform in changing market conditions.
Covid Crash
Covid Crash
Every market event is unique, but we are often asked how our strategies performed through Covid.
While the company was not established until 2022, we used the historical price data to see what might have happened through the Covid crash of 2020.
While the US stock market dropped 30%, this strategy remained essentially ‘flat’, and then continued to be profitable post-Covid.
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