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Successful traders only rely on this one index with ETFs

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Successful traders only rely on this one index with ETFs

Ramon Hack is a full-time trader and has total assets in the millions. Getty images/Yuichiro Chino/Ramon Hack

Ramon Hack is a full-time trader and develops trading strategies. He owns four portfolios worth six figures and manages the Wikifolio certificate “Quantissimo”.

He is making long-term investments with two of his portfolios amounting to around 892,000 euros. To do this, he relies on ETFs that only reflect one index.

However, the 43-year-old does not pursue a “buy-and-hold” strategy, but rather uses concrete rules with which he makes buying and selling decisions.

Ramon Hack is a full-time trader and develops trading strategies. “I started investing shortly after leaving school,” remembers the 43-year-old. He was fascinated by the stock market when he was still at school: “At the turn of the millennium you couldn’t help but come into contact with the topic.” There was a real hype back then. One of his first investments: the media company EM.TV. “I bought the share during the crash when it was around 20 euros, based on the motto that what falls must rise again. But that didn’t come true.”

I thought that with a banking training I would learn how the stock market works

“Nevertheless, it was clear to me that I really wanted to do something with the stock market as a career.” That’s why Hack completed a banking apprenticeship after graduating from high school. “That was a bit naive. I thought that through training I would learn how the stock market works. But it wasn’t nearly as easy,” he says. That’s why, after completing his training, he went on to study finance.

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His first job was in securities consulting – until the financial crash in 2008. “It was very emotionally exhausting at the time, trying to explain to people why their wealth had shrunk so much,” he remembers. That was when he first felt the desire to do better. For this reason, he left consulting and moved to a broker where Hack worked for another eleven years. There, Hack developed trading strategies and led seminars.

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I’m trying to gain a statistical advantage in the stock market

After this time, Hack decided to become a full-time trader. Today Hack has four portfolios, all of which are in the six-figure range and are worth a total of over one million euros. Business Insider got some insight. Two of them are pure trading depots, Hack invests in the other two for the long term. Together, these amount to around 892,000 euros. At the same time he still manages it Wikifolio-Zertifikat “Quantissimo” amounting to around 880,000 euros. There and in his long-term investments, Hack uses a rules-based trading strategy.

“When trading long-term, I try to gain a statistical advantage on the stock market,” explains the trader. This means: No decision should be made based on emotions and every trading decision is based on a concrete rule that is completely emotionless. “I use historical data to develop and test my strategies.”

In his long-term strategy, Hack essentially relies on ETFs that track the S&P 500 but are from different providers. These are currently:

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iShares S&P 500 EUR Hedged ETF

SPDR S&P 500 ETF

But the whole thing has nothing to do with buy-and-hold. “You have to imagine that I mainly trade the S&P 500 and various strategies based on it. The holding period can sometimes be just a few days, but sometimes it can be several months.”

Which means: Based on its rules, Hack makes buying or selling decisions and also takes short positions. “I don’t bet on individual stocks in the long term because I want to keep the fluctuations low and indices are better suited for this. I often hear criticism that I’m too US-centric, but what do the 500 companies that are in the index do? Most of them are active worldwide, so I have little concern about that.”

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