For many investors, ROKU hasn't been a positive journey. DynaLogic could have changed all that!

DynaLogic's signals produced a 246% improvement in return for ROKU investors vs buying and holding. See the case study.

“Just do Something”

Roku, Inc (ROKU) is an American company that manufactures and sells a variety of digital media players for video streaming, audio equipment and operates an ad-supported video on demand service.  Roku is based in San Jose, California. Roku has an advertising business and also licenses its hardware and software to other companies.  Wikipedia

Over the last couple of years, we have seen the company stock skyrocket from under $100 per share to over $450 per share during COVID, as people stuck at home looked for inexpensive TV content to pass the time.  However, from the high of $450 in July 2021 to the close on May 26, 2023, the stock is down -88%. 

ROKU is a security tracked by DynaLogic’s algorithm and we were sending signals alerting our subscribers to “just do something” during this entire period.

Let’s examine an investment in ROKU on 1/2/2020, before the pandemic, and look at two different scenarios.  Scenario 1 is a Buy and Hold while Scenario 2 overlays the DynaLogic sell signals, investing the proceeds in the S&P 500 ETF (SPY).

As the chart shows, there was a significant runup in price during the early stages of covid but since July 2021, the stock has been in a free fall. 

Lets overlay the DynaLogic Sell signals onto the graph.  Remember, Sell signals are only generated as prices are moving higher and reach a predetermined sell price. Sell signals were generated as the price of ROKU was declining only when there was an uptick from a buy price that reached a predetermined price that triggered a sell.

Now, we can examine the results for each of our scenarios.

The implementation of the sell signals and the reinvestment into the SPY ETF improved the overall return dramatically (by 246%!) and created significant diversification. 

Instead of continuing to own 100% ROKU in Scenario 1, the concentration in ROKU was reduced to 7% with 93% in SPY in Scenario 2.  Most importantly, instead of losing nearly 60% of the initial investment, subscribers who followed the signals instead gained over 40%!

The initial investment in ROKU created a wonderful opportunity to capture significant price momentum and the reinvestment in the SPY ETF preserved the substantial price appreciation.  “Concentration creates wealth and diversification preserves wealth.”

This is just one of many case studies that underscores how following DynaLogic’s system can produce better outcomes in a variety of scenarios. Maybe you are sitting on a rocket ship (hello Nvidia investors) and wondering whether you should do something? Now might be the time to let DynaLogic help you know WHEN to act and WHAT to do.

We track over 170 securities, and our paid members are always able to request an addition if we are missing something you’d like to see tracked.

If you’re ready to start investing smarter with DynaLogic, sign up for a 30 day free trial with the link below. We are getting ready to announce an update to our signal formatting that we believe will help make DynaLogic’s signals easier to follow and even more valuable to our users so there’s never been a better time to try it out!