Finance Tool Update & Stock results 2020

It is time to evaluate my 2020 goal of the year, to create a tool that would help me with stock trading. The goal was kinda vague, but I did make a helpful tool and I use it regularly to review stocks. So the goal was definitely reached.

I plan on working on the tool though. Currently I have a lot of features I want to add to it. I need a better way to view my current holdings (so I don’t have to log in on my broker) and I still haven’t found and implemented any good exit triggers. And after I’m done with those features, I’ll probably think up more to code.

The result of using the tool

Last time I post about the result I compared my returns against an average yield from a collection of funds I would probably had invested in if I hadn’t started this project. And I will do the same this time.

My comparison between the funds and my project will be as if I had all the invested money at the end of 2020 from the beginning. Which is not fully correct, as I added money to the project over time as I got more confident in it. I have also not bothered to add any payed out dividends to the result. This way of comparing will be to my project disadvantage, but I couldn’t think of any other simple ways of doing it.

My project had a growth 14,21% compared to the funds growth of 8,71% for the time period 2020-02-01 to 2020-12-31. That is a difference of 5,5 percent units. This is also better than the index for the Stockholm exchange which grew 12,86% the same period (I compare to that index because I live in Sweden).

The result is not astronomical, but I’m happy with it. Nice to have a project that is creating money for me. I know it is still to early to say if the tool really does help me or if I’m just being lucky. So far it has given me 34 picks that lead to profit and 22 that lead to a loss.

A little more on the tool

The working name for my tool has been “Fido”. I pick that name because I needed something generic as I haven’t fully figured out all the things I want the tool to do. “Fido” was close enough to “Finance something” and maybe I will someday figure out a fitting backronym for it.

Also I though it would be cute to have a dog name on it. And the fact that Fido means “I trust” in Latin is very fitting for I tool I trust with financial decisions.

The name also inspired me to create the following graphics as the tool’s icon.

Going forward

I will continue using this tool and I will continue reporting the result.

As usual, I’m being a bit secretive about the tool. I’m still not comfortable talking about the inner workings. But I’m planing on writing more about my thoughts behind the tool and stock trading on this blog.

Also, I have some new goals for 2021, which I will talk more about in a later post.

/Henrik