Stock market simulation game

@Shrimpman Hey yes, it's from the Sparkasse. Which sectors did you bet on?

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Shrimpman@Shrimpman

@yngfinn Tech, we are participating as students again this year, probably going for armor

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@Shrimpman Okay, I had the same thought, but tech has been trending for a very long time and defense has already seen extreme returns like $RHM. Unfortunately, there are no other sectors with such high growth at the moment.

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Sebastian@Baisse-Jumper

Stock market simulation game. I know it too. 🤪 It has a somewhat suboptimal structure, as you can't select many stocks because only certain indices are supported. In principle, you should consider which stocks could perform well in the coming months (taking into account the existing indices). The simulation only has a relatively short duration.

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Strategy: 1. two teams, one momentum team, one mean reversion team.
2. the momentum team picks the 5 stocks from the tradable universe with the highest 1-year performance (optionally the 10 best stocks and the 5 worst stocks of the past month).
3. the mean reversion team takes the 5 worst stocks of the last year (optionally the 10 worst and of these the 5 best of the last month)
4. repetition at the end of each month until the end of the game.
5. the prize money is distributed equally to all.
👍

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SemiGrowth@SemiGrowth

@Epi That sounds interesting. Are there any backtests for this yet? So as a real investment strategy?

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@SemiGrowth Not that I know of. It's just a concept for a time-limited game.

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SemiGrowth@SemiGrowth

@Epi because it is too volatile?

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@SemiGrowth Rather because it is too concentrated. In a real portfolio, I would try to find the optimum relationship between momentum and mean reversion. Here it is more of an attempt to land a lucky strike. You never know exactly which regime you are in. 😏

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@Epi
My dear, a good suggestion.
But I think working with the mean reversion strategy requires a bit of experience.
Which of course would be good for the project to deal with trading.
For a long-term investment, which I would recommend to young people, perhaps not the best strategy. Because it is also somewhat time-consuming.
Which stocks do you currently see that would fit into the strategy. And are below the average?

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@Tenbagger2024 Your objection is justified. If the rules of the stock market game are anything like the ones I used to play at school, then they are pretty unsuitable for quick trading. It should also only be a suggestion for end-of-month strategies. So much more relaxed.
And the two teams can learn!

Oh, I suspect anyway that rule-based investing is only for uncool nerds and not for budding financial geniuses. What could the students say if they were successful? "The strategy was just right for the market situation" - not really. 😂

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@Multibagger @Tenbagger2024 It would be exciting to hear your opinion on this, maybe you also have some stocks that you can recommend to me :)

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Chris@Multibagger

@yngfinn can you take commodities, i.e. gold, silver, etc.? And 40% crypto is far too high in my opinion. But I'm sure others here can assess that better.

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Klein-Anleger1@Klein-Anleger1

@Multibagger The 60/40 was just an example, I hadn't thought about it and there are oil, gold and silver open end certificates but unfortunately you can't trade the commodities normally. For example, this is the gold certificate $AT0000A0BJ52

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Hi, we also do this at our school, but I have to correct you a little, unfortunately you can only buy crypto in the training portfolio and even stocks like Oracle are unfortunately not tradable. You can only trade shares that are listed on the DAX, MDAX, Nasdaq, Dow Jones and so on.... The fee structure is a bit different from what you described. The fees are 0.3%, but 15 euros is the minimum fee... All in all, I think it's good that you at least learn something like that at school... Of course I'm also registered, even if most of the shares I have in my custody account with real money are not tradable there at all xD HG

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@Klein-Anleger1 Thanks for the hint, I have corrected the post again. Until now you only had access to the training depot so I didn't know that crypto wasn't available in the competition depot. I think it's actually very good that there is something like this at school, but unfortunately it's not discussed enough in class.

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It could be a bit bumpy in October. It is therefore difficult to say. Stocks that have already performed well could of course also correct.

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@Tenbagger2024 You are right, but with a 4-month investment horizon it is also critical to bet on stocks where you hope for a "breakthrough" and then wait for it all the time.

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@yngfinn
We'll see what the community tells us 🚀

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@yngfinn
Take a look at $AG1. There are reports of expansions today

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@Tenbagger2024 Okay, thank you, I'll have a look right away.

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