Keybot the Quant Algorithm Returns +59% in 2021; Another Stellar Year as the COVID-19 Pandemic Lingers

The Keybot the Quant algorithm is re-zeroed for the new year ahead. 2021 is another stellar year with the actual trading generated by the quant returning +59%. The quant program gains +32.3% as compared to the S&P 500 benchmark index at 26.9%. In a nutshell, the S&P 500, which is the United States stock market, SPX, gains a historic and record-setting 27% in 2021. The Keybot the Quant computer program gains +32% and controls the actual trading of the ETF's which gains a humongous +59% this year.

If you had $10,000 at the start of 2021, you have $16,000 only 12 months later. $100K one year ago got you $60K for a total of $160K only 12 months later.

The algorithm triggers a whipsaw on 12/17/21 so the trades will remain in the single ETF's for at least 30 days. The markets have become too choppy so the quant drops from the 2x ETF's to the 1x ETF's to reduce risk. A choppy market eats up bulls and bears alike. Everyone becomes part of the chop suey. The robot remains in SPY currently; the numbers were rezeroed to properly tally the yearly data.

The Fed's money-printing is as constant as snowflakes in wintertime carrying the crony capitalism system to its final resting place. In the meantime, everyday is a party since March 2009 when the United States decided to protect the wealthy and screw the poor. Making money is effortless; if you have money.

The bulls are in full control of the stock market as 2022 begins. The banks, volatility, commodities, copper, retail stocks and the NYA Index, are all bullish and controlling market direction and that is a lot of moving parts uncharacteristic of the normal action where only a couple parameters are steering the ship.

If you want to focus on one key parameter, it is the banks. XLF 38.77 is the line in the sand (now at 39.05). If the stock market weakens, XLF 38.77 will tell you if it is real, or not. If stocks sell off and everyone is scared but XLF does not drop below 38.77, stocks will likely recover. If XLF 38.77 fails, bears plan on exploring lower numbers for stocks.

Bears also need higher volatility and VIX 19.24 is the bull/bear line in the sand. VIX is at 17.22 to begin the year in bull territory (remember, volatility moves inverse to the stock market over 90% of the time). If stocks sell off and the VIX shoots above 19.24, the selling is real and has legs. If stocks sell off but the VIX does not move above 19.24, the bears got nothing and stocks will recover and move higher again.

Bears need GTX below 2718 (now at 2775; the commodity index), CPER below 26.60 (now at 27.21), RTH below 190.01 (now at 194.70) and NYA Index below 16618 (now at 17164). Lots of moving parts.

For the next week or more, you can forecast the stock market direction using these parameters; XLF 38.77, VIX 19.24, GTX 2718, CPER 26.60, RTH 190.01 and NYA 16618. Each one that turns bearish creates another down leg in stocks. You will know a short-term bottom is in play if any of the parameters turn bearish, but then revert back to bullish, that hints that the downside does not have much legs. If 3 of the 6 turn bearish, especially if it occurs in quick order within minutes or a few hours of each other, that means serious downside action has started and there is likely an ugly selloff already underway and gaining bigtime momentum.

The algo is in the 1x long ETF SPY currently and remains in the single ETF's until after 1/18/22 when the robot will revert back to 2x ETF's (unless another whipsaw occurs). Watch the banks and XLF 38.77.

1/9/22; 7:00 PM EST =
1/7/22; 9:00 AM EST =
1/1/22; Algorithm Zeroed for 2022 Data = +88; signal line is +41; hold long 4766; (Benchmark SPX for 2022 Final = +0.0%)(Keybot algo this trade = +0.0%; Keybot algo for 2022 = +0.0%)(Actual results this trade = +0.0%; Actual results for 2022 = +0.0%)

Keybot the Quant Begins 2022 on the Long Side from SPX 4766

All Data 0%. Begin 2022

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START 2022 PROGRAM

Begin Printing

Mark and Set

Date Stamp 1/1/22; 6:11 AM EST

START 2022 PROGRAM

Copyright Enforced. 2008. 2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016. 2017. 2018. 2019. 2020. 2021. 2022. Keybot the Quant. The Keystone Speculator. K E Stone. All Rights Reserved.

 

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END OF 2021 RESULTS:

 

The SPX (S&P 500) Benchmark Index Gains a Huge +26.9% in 2021

(SPX Started at 3756 and Ended at 4766 Rallying an Unbelievable 1,010 Points During the Coronavirus (COVID-19) Pandemic)

 

Keybot the Quant Algorithm (Computer Program Only) During 2021: +32.3%

 

KEYBOT THE QUANT ACTUAL TRADING RETURN FOR 2021 INCLUDING ALL COMMISSIONS, COSTS AND FEES: +58.6%

 

Keybot the Quant has never printed a losing year

 

Keybot the Quant is a long-short algorithm that oscillates between a bullish (long) position and a bearish (short) position seeking the smoothest path through the trading year using the S&P 500 (SPX; the US stock market) as the benchmark comparison index

 

Number of Position Changes (Long to Short or Short to Long) During 2021: 31

 

1/1/2021	3756	Go Short	5:19 AM	SDS	12.39
1/6/2021	3745	Cover Short	10:10 AM	SDS	12.46
1/6/2021	3745	Go Long	10:10 AM	SSO	90.84
1/25/2021	3812	Sell Long	11:07 AM	SSO	94.22
1/25/2021	3812	Go Short	11:07 AM	SDS	11.96
2/1/2021	3779	Cover Short	2:18 PM	SDS	12.12
2/1/2021	3779	Go Long	2:18 PM	SSO	92.45
2/23/2021	3849	Sell Long	9:30 AM	SSO	96.07
2/23/2021	3849	Go Short	9:30 AM	SDS	11.62
3/9/2021	3882	Cover Short	10:03 AM	SDS	11.33
3/9/2021	3882	Go Long	10:03 AM	SSO	97.51
5/4/2021	4133	Sell Long	11:18 AM	SSO	110.35
5/4/2021	4133	Go Short	11:18 AM	SDS	9.90
5/14/2021	4144	Cover Short	9:30 AM	SDS	9.82
5/14/2021	4144	Go Long	9:30 AM	SSO	110.74
5/18/2021	4132	Sell Long	3:59 PM	SSO	110.29
5/18/2021	4132	Go Short	3:59 PM	QID	25.19
5/20/2021	4144	Cover Short	10:34 AM	QID	24.41
5/20/2021	4144	Go Long	10:34 AM	SPY	413.42
6/16/2021	4237	Sell Long	12:28 PM	SPY	423.47
6/16/2021	4237	Go Short	12:28 PM	SH	15.63
6/21/2021	4201	Cover Short	10:08 AM	SH	15.76
6/21/2021	4201	Go Long	10:08 AM	SSO	114.11
7/8/2021	4321	Sell Long	9:30 AM	SSO	119.78
7/8/2021	4321	Go Short	9:30 AM	SDS	9.01
7/9/2021	4345	Cover Short	9:43 AM	SDS	8.84
7/9/2021	4345	Go Long	9:43 AM	SPY	433.00
7/15/2021	4349	Sell Long	1:32 PM	SPY	433.62
7/15/2021	4349	Go Short	1:32 PM	SH	15.19
7/21/2021	4344	Cover Short	9:36 AM	SH	15.20
7/21/2021	4344	Go Long	9:36 AM	SPY	432.98
7/27/2021	4395	Sell Long	10:17 AM	SPY	438.42
7/27/2021	4395	Go Short	10:17 AM	SH	15.00
8/5/2021	4419	Cover Short	10:01 AM	SH	14.93
8/5/2021	4419	Go Long	10:01 AM	SPY	440.68
8/16/2021	4454	Sell Long	9:30 AM	SPY	444.46
8/16/2021	4454	Go Short	9:30 AM	SDS	8.35
8/23/2021	4482	Cover Short	11:05 AM	SDS	8.25
8/23/2021	4482	Go Long	11:05 AM	SSO	129.84
9/7/2021	4514	Sell Long	10:13 AM	SSO	131.83
9/7/2021	4514	Go Short	10:13 AM	QID	17.76
9/23/2021	4420	Cover Short	9:36 AM	QID	18.67
9/23/2021	4420	Go Long	9:36 AM	SSO	126.27
9/28/2021	4385	Sell Long	10:07 AM	SSO	124.24
9/28/2021	4385	Go Short	10:07 AM	SDS	8.55
10/13/2021	4359	Cover Short	1:29 PM	SDS	8.61
10/13/2021	4359	Go Long	1:29 PM	QLD	73.35
11/9/2021	4689	Sell Long	9:56 AM	QLD	88.38
11/9/2021	4689	Go Short	9:56 AM	SDS	7.42
11/12/2021	4669	Cover Short	11:02 AM	SDS	7.47
11/12/2021	4669	Go Long	11:02AM	QLD	87.56
11/22/2021	4690	Sell Long	3:57 PM	QLD	90.54
11/22/2021	4690	Go Short	3:57 PM	QID	15.81
12/7/2021	4666	Cover Short	9:48 AM	QID	16.13
12/7/2021	4666	Go Long	9:48 AM	SSO	140.46
12/9/2021	4693	Sell Long	9:36 AM	SSO	142.20
12/9/2021	4693	Go Short	9:36 AM	SDS	7.41
12/15/2021	4647	Cover Short	2:13PM	SDS	7.45
12/15/2021	4647	Go Long	2:13 PM	SSO	139.70
12/17/2021	4618	Sell Long	9:42 AM	SSO	137.59
12/17/2021	4618	Go Short	9:42 AM	SH	14.09
12/21/2021	4605	Cover Short	9:36 AM	SH	14.11
12/21/2021	4605	Go Long	9:36 AM	SPY	458.78
1/1/2022	4766	Hold Long	6:11 AM	SPY	474.96

 

Date – SPX – Position – Date Stamp – ETF – Price

 

Begin Printing Trade Data Entries Exits Reverse Order

 

FINAL 2021 RESULTS

 

Mark and Set

 

Date Stamp 1/1/22; 6:11 AM EST

 

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1/1/22; Algorithm Zeroed for 2022 Data = +88; signal line is +41; hold long 4766; (Benchmark SPX for 2021 Final = +26.9%)(Keybot algo this trade = +3.5%; Keybot algo for 2021 Final = +32.3%)(Actual results this trade = +3.5%; Actual results for 2021 Final = +58.6%)
12/28/21; 10:00 AM EST = +88; signal line is +39