ARK is up 200% on their NNDM position, but its tiny relatively speaking so who knows. I think them taking a position created a very easy pump on social media and it gained this momentum. $1 is our EM1 line, so zero interest in this. The model produces more plays than there is available capital to play them.
The hook - We do offer it as a subscription based service for 3 reasons. 1 - to recoup 2 years of software engineering and development on the project. 2 - we manage a prop fund with it and have to protect our ability to take positions. However, we've found these plays to be 10x more liquid than even initially we thought. 3 - We actually want to be able to empower people with the ability to learn, and create financial independence. The model is just a tool, you still have to read EDGAR, do a little research on trials etc. Comparable to gambling, this isnt a "tout" service. We teach a man to fish. We want to supply an alternate to all the YouTube stars telling people how to day trade, which ultimately leads to financial ruin for 99% of people.
There's not much "digging." We try to make the model as idiot proof as possible, with nice colors presented in an easy to identify format. Bios, we organize the events in another section that tracks and links all the clinical trials.
Objective for each trade - 40% is the bench mark of what we expect. There's a mathematical reason for this, and the risk bands (EM0,EM2,EM3) that I talk about are mathematically based. Now, there are some plays that we know will run more for a variety of reasons, 1 being the firm who is running the book. There are some scammy Vulture Funds out there that wind up in a lot of these plays, and you learn how they execute the offering. If a company needs to sell 8m shares, and the Fund is getting paid 3m shares, you know its in their best interest to turn the algo on, blow out shorts and hit pay dirt.
Again, we do not marry these plays. These are very short to mid length plays. Ideally we like to take position a month before the anticipated run, we have 4 bots that trade around some of our core holdings, to lower avg share cost... and then a PR comes out at 7am in the event window, and we liquidate into the volume. Never dwell on exiting a position too early. Like i said, we sold most of our EQ position at $12, when even we had a $18 target on it. And of course it ran to $30 that day. However, those results aren't typical. 90% of our plays are a 7am PR, nice 40-60% run up in 15 minutes, then the company liquidates their shares needed, and the short sellers pile in and drive it back down before market opens.
Our last trade on PSTV, our net share cost was a positive 16 cents. The bots had flipped so many shares while waiting for the run, that we were already positive on the play heading into the run. That wont be typical, but still shows the power of what small gains can result in.
We take a lot of shit on StockTwits for our bot Sera, who posts her daily trade logs. Goal is to average a .15% daily gain on the account. Compounded over a year, you can do the math. Our other bots are programmed to be a little more aggressive. Each bot started with 200k in it, so annualized returns on that should be impressive.
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