Just Do Something - Affirm Holdings
The DynaLogic signal overlay produced a 50% improvement in return over Buy and Hold.
The DynaLogic signal technology is a powerful tool to use when markets are volatile like we are currently experiencing. We have selected Affirm Holdings (AFRM) as an example of how following DynaLogic signal’s benefitted subscribers who acted on them in the first two months of 2023. AFRM opened 2023 at a $9.10 share price and closed most recently at $13.625.
The DynaLogic signal overlay produced a 50% improvement in return over Buy and Hold.
Ready to start benefitting from our daily signals? Click below to activate a 7 day free trial or go ahead and lock in a 20% lifetime discount until March 15th!
Affirm Holdings, Inc. (AFRM)
Affirm is a buy now, pay later (BNPL) service that allows merchants to provide flexible payment plans for their customers without hidden fees or gimmicks. Consumers can pick the payment option that works for their budget—from four interest-free payments every two weeks to monthly installments.
AFRM went public in an initial public offering (IPO) on 1/13/2021 at $49 led by book-running managers Morgan Stanley, Goldman Sachs, and Allen & Co. The stock closed on 1/14/2021 at $114.94. Over the next 2+ years, AFRM traded as high as $168.52 on 4/11/21 and reached a low of $8.91 on 12/27/22, closing price. The price high of $168.52 resulted in an increase of 244% from the IPO.
DynaLogic publishes a minimum suggested Sell in the daily post, but if you are a trader, you are probably considering a larger, more meaningful amount. Let’s assume you decided to invest $10,000 on 1/1/2023 and use the DynaLogic sell signals to reduce your exposure to AFRM. Shown below might be an appropriate sell platform showing sell signals getting progressively larger as a security continues to move up in price.
Below is a graph of the Sell signals that were reported in the “Risk Off” daily post from January 1, 2023 until March 3, 2023. Notice there were no sell signals after the price peaked in early February. Sell signals occurred while the price was rising.
Additionally, DynaLogic’s sell signals are progressive. The more the price of a security moves up in price, the larger the sell signal. The chart below shows the progressive nature of the signals. Early on, the signals are small, 2.5% and get progressively larger where there is a recommended sell of 15% on the day the price of AFRM peaked.
The DynaLogic overlay produced a 50% improvement in return after tax. While the improvement in return is significant, perhaps the most compelling result is in scenario #1, the investor still holds 100% AFRM. In Scenario #2, the investor holds $7,988 in cash which represents almost 80% of the original investment . By “taking some chips off the table”, 55% of the total investment is available for other investments while still holding $6559 (45%) in AFRM stock. This is a perfect example of how concentration creates wealth while diversification preserves wealth, DynaLogic helps you have the best of both worlds.
Ready to start benefitting from our daily signals? Click below to activate a 7 day free trial or go ahead and lock in a 20% lifetime discount until March 15th!