Not all rockets make it to the moon.

We examine how DynaLogic's signals performed on a stock that appeared to be heading for the moon, but instead came crashing down.

"Concentration creates wealth, diversification preserves wealth." This wisdom from legendary investor Warren Buffet is the bedrock of our investment philosophy at DynaLogic. Through our "Just Do Something" case studies, we've showcased how our strategy of selling on strength and reinvesting in the iShares S&P 500 (SPY) ETF can lead to impressive wealth accumulation and protection.

Take Upstart (UPST), an AI lending platform that saw a dramatic rise and fall in its stock price. Founded by Dave Girouard, former President of Enterprise Google, Paul Gu, a Thiel Fellow, and Anna Counselman, another Google alumnus, Upstart uses non-traditional variables to predict creditworthiness. They first launched in April 2012 with an innovative product but pivoted to a more traditional lending model two years later.

From its IPO in December 2020 at $20 per share to a closing price of $383.21 less than a year later, early investors in Upstart saw exceptional returns. However, by the end of 2022, the stock had plummeted to $13.22, a decline of 96.5% from its peak. $10,000 invested at IPO would have been worth a staggering $191,605 at the stock's peak, but without a strategy to protect these gains, much of this wealth would have evaporated.

Let’s take a look at Upstart’s price history over this period.

So, how could the DynaLogic system help in this situation? Let's delve into the details.

The DynaLogic system overlays sell signals onto the price movement of UPST, offering a clear strategy for selling on strength and diversifying to preserve wealth.

Now let’s look at the price history again with the sell signals sent by DynaLogic included in the chart. You can see DynaLogic was aggressively encouraging subscribers to trim their position and lock in gains during the massive run-up.

The result? A more balanced portfolio with preserved capital, even as the individual stock price of UPST dipped. Let’s look at the numbers to see how DynaLogic impacted an investor’s returns. We compare a buy and hold strategy versus following DynaLogic’s system for an investor who put $10,000 into UPST.

Remember, investing in individual stocks can be a risky game due to their volatility. However, they can also produce outsized returns due to greater concentration. The DynaLogic system allows you to invest in individual returns knowing that DynaLogic has your back and will recommend you diversify your gains on a winning stock into a safer bet like an ETF or to seize opportunities in other promising stocks.

In this case, it produced over an 80% increase in total return for subscribers who followed the signals!

Don't believe us? Hear it straight from our subscribers who've leveraged the DynaLogic system to take emotion out of the equation and make sound investment decisions:

T.S. says, "The predetermined buy and sell triggers built into the strategy make life easier and a more efficient use of time as it takes the emotion out of the equation."

Wes, a subscriber for 6 months, has already seen a significant impact, saying, "The best part... I am not one that is trying to make the decisions... [DynaLogic] tells me when and how to make decisions.”

If you're still unsure, consider this: DynaLogic doesn't aim to predict the future; it prepares you for it. Our mathematical algorithm alerts subscribers to opportune moments to enter or add to a position and when it's wise to consider trimming a position.

So, are you ready to take control of your investment journey and maximize your gains? Click here to upgrade your subscription for full access to our daily signals on 230+ tracked securities. Claim your 7-day free trial of our full membership today. Your future self will thank you. Not ready, you will also have an option to sign up for our free subscription for more case studies, market analysis, and investing tips.