Skip to content

This trading bot buys stocks bought by US politicians; Here’s how it’s doing in 2024

This trading bot buys stocks bought by US politicians; Here's how it's doing in 2024

A significant number of U.S. politicians have gained the reputation for being either Buffett-like stock market prodigies or serial insider traders – depending on whom you ask – and many of them have managed to significantly beat the market on numerous occasions.

Their propensity for perfectly-timed stock purchases and sales is, perhaps, most visible when looking at their performance throughout 2023, which shows that many significantly beat the major benchmarks, and one – New York’s 26th congressional district representative Brian Higgins – had a return rate of 238.9%.

In 2023, the S&P 500 index – a commonly used benchmark for the U.S. market – rose approximately 24%.

Given the politicians’ apparent stock-picking talents, it is hardly surprising that many investors have taken to developing strategies seeking to mimic Congressional market successes.

It is likely that none is as prominent as Quiver Quantitative, most recognizable for commonly sharing suspicious trades on X, which boasts a string of politician-themed strategies.

Beating the market with automated trades

The idea behind Quiver Quantitative’s ‘Congress Buys’ automated strategy is both simple and rather successful. The trading bot simply invests in the 10 most purchased stocks by members of Congress and their families, and it has, since backtesting began in 2020, been widely successful.

In total, the bot has a return rate of 265.29% and boasts a compound annual growth rate (CAGR) of 39.82%.

Since going live in May 2022, it is up 37.90%, while, in the same period, the S&P 500 – the index it uses as a benchmark – is up 21.33%, meaning that U.S. Congress – and the strategy by extension – has been on average, handily beating the market.

Strategy vs S&P 500 performance since going live. Source: Quant Database

In recent weeks, things changed somewhat as U.S. politicians have apparently lost some of their spark. The last 30 days saw the strategy return 3.22%, while the S&P 500 is up 4% in the same period.

Strategy vs S&P 500 in the last 30 days. Source: Quiver Quantitative and Google

Efforts at curtailing Congress

The magnifying glass placed on congressional trades triggered a renewed drive to pass a bill that would either force elected officials to divest or place their assets in a blind trust. 

In the leadup to this latest initiative several earlier similar bills have been proposed and then postponed multiple times.

Out of all postponements, the decision not to vote on the matter that was taken during Representative Nancy Pelosi’s tenure as the Speaker of the House is widely seen as the most egregious, and she – through her husband Paul – is considered one of the most prolific, successful, and suspicious politician-traders in the United States.

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.