close
close

René Wolfram: Profit from inflation: Here's how!

The word “inflation” makes many people in this country shudder. They get chills down their spines just thinking about it. I find it completely incomprehensible how people can always play the passive victim role instead of using their common sense and taking action. Incidentally, this starts with the moaning about the big companies that are lining their pockets. If you think that Amazon, Apple, Meta and whatever they are called are making abnormally high profits, then the logical conclusion would be to buy their shares and thus participate in their profits.

The same applies to inflation: instead of complaining, it has long been possible to trade commodities. Even most CFD brokers and issuers of warrants and leveraged products offer leveraged certificates on various commodities. Of course, you shouldn't approach this venture clueless and without a strategy. But there are only advantages if you engage systematically in these efforts.

1. You protect yourself and your family against inflation. Even if energy prices rise massively because of geopolitical tensions, no problem: you can profit from these price developments and protect yourself.

2. Since the commodity markets are much more logical (supply and demand, few but strong and recurring influencing factors such as weather, harvest and demand phases) than, for example, individual stocks, it has been proven that high and regular profits can be achieved here with a well-founded strategy (see the results). Are there any outliers? Of course! Sometimes it doesn't work. But overall and if you diversify widely, it is a performance guarantee.

3. Wide diversification and avoidance of concentration risks! While there are only a handful of indices that sometimes contain the same stocks, we can diversify widely with commodity trading.

In our RW Striker portfolio, which is ideal for part-time and time-saving wealth building within a few years, 16 of the 39 trades we make per year are commodity trades. The following table shows which markets these are. Energy commodities in particular, as well as metals, are among the most powerful and real pacemakers. And there is a great selection of products for precisely these commodities, for example at Morgan Stanley.

Our RW Striker portfolio meets these criteria

$48,441 profit per year with $30,000 starting capital, over 78% hit rate and no loss year! In total there are the same 39 trades all year round (no more!), which are absolutely plannable (exact dates) and have predetermined stops, entry modes and holding periods, so there is NO room for interpretation.

The most important thing for me is that the historical maximum drawdown is significantly smaller than my account capitalization. So our RW Striker Portfolio is ideal for traders who trade with a capital base of 15-30,000 € (or dollars)The maximum drawdown here is just over $21,000. The fluctuations are also low and that over the entire history. In addition, the approach is only in the market 5% of the time. This is important because a trader with little capital realistically has to use every dollar several times over the course of the year. If the capital is then available 95% of the time, as with RW Striker, this is an enormous advantage. The average profit per trade should ideally be in the high three-digit or even four-digit range. I am RW Striker $1764 average per trade (everything calculated on 1 future, but can also be implemented with leverage certificates). This means an average profit of $48,441 per year (as I said, based on 1 contract for all trades as standard). Finally, the time factor is important. Traders are constantly learning approaches that require them to sit at the computer full-time (order book, volume trading in the intraday area), which is not sustainable unless you quit your job at random. All of my approaches – including RW Striker – are very time-saving to implement (usually less than 5 minutes per trade) and can be easily traded on a part-time basis.

The RW Striker Portfolio includes 39 Setupswhich include seasonal-cyclical as well as trend strategies. This already provides a decent spread. The strategies included here have exceptionally high hit and payout rates (profit per trade), but fluctuate only slightly (minimal drawdown), so that the approach can also be optimally implemented by traders with small accounts. Hit rates are not at all meaningful with regard to the profitability of an approach, but they make implementation more pleasant and, in combination with high payout rates (profit/trade), suggest that there is a fundamental basis effect. Scalability is given and is particularly possible with leverage certificates if someone only has €15,000 at their disposal, for example. Finally, it is also an advantage if the Sharpe Ratio (annual) has a relatively high value, as this indicates low standard deviations in the trade series. The dependence on individual outliers who earn extremely high amounts is then low, but the results of the trades are similar, so that the performance is carried on broad shoulders.

Get 50% discount for early birds NOW!

For early bookers we offer a 50% discount on the regular price. Information and booking here:

In the RW Striker Portfolio, we like to trade leveraged certificates from Morgan Stanley's wide range of products. More information here:

Don't miss any more trading videos! Subscribe to the channel now: