The StockHero team is pleased to publish this article that compares the performance between StockHero’s Sigma Series trading strategy and the traditional buy-and-hold approach. This comparison aims to highlight the effectiveness of active trading in mitigating losses and even generating gains in a bearish market.
Based on the general market data for February 2025 (NASDAQ, NYSE), it is evident that the overall market experienced a downturn, with several prominent stocks posting significant losses under the buy-and-hold strategy.
However, stock trading bots that run StockHero’s Sigma Series strategy demonstrated superior performance across many of these stocks, often turning losses into gains or significantly reducing the impact of market declines.
For example, AMD, which saw a -13.88% decline under buy-and-hold, achieved a 5.01% gain using the Sigma Series strategy. Similarly, ARM, which plummeted by -17.46%, experienced an 8.43% gain under Sigma Series. This pattern is further reinforced by IBRX, which dropped by -4.60% under buy-and-hold but soared to 22.06% in the Sigma Series strategy approach.
These results suggest that the Sigma Series strategy is adept at identifying opportunities to capitalize on short-term market fluctuations.
For stocks that suffered steep losses, the Sigma Series strategy often outperformed significantly. CLSK, for instance, posted a -23.47% loss with buy-and-hold, yet the Sigma Series turned this around to 11.60%. Similarly, QUBT, which saw a staggering -41.52% loss, was mitigated to an 18.90% gain under the Sigma Series strategy. These examples highlight the strategy’s ability to identify and execute trades that counteract severe downward trends.
Not all results were positive, however. COIN, which suffered a -25.99% loss under buy-and-hold, still experienced a -2.07% decline with Sigma Series strategy — though significantly less severe. Likewise, TSLA, with a -27.59% loss, was still down -9.92% under the Sigma Series strategy.
While these cases demonstrate that the strategy is not infallible, the reduced losses indicate that it provides a more effective risk management framework than passive investing.
Overall, the Sigma Series trading strategy outperformed the buy-and-hold method in most cases, particularly in mitigating losses during a bearish market. By leveraging active and intelligent stock trading strategies offered by StockHero, this approach provides a more adaptive and resilient investment strategy compared to traditional long-term holding.
Disclaimer
Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.
Past performance is not indicative of future results. All investments and trading carry the risk of loss, and you should only invest/trade money that you can afford to lose. It is strongly recommended that you seek independent financial advice from a qualified professional before making any investment/trading decisions.
