Law makers have now decided a derivative taxation novelty in Germany. It was unclear how the new law impacted the profitability of investments in comparison of the former taxation (T1). The purpose of the study was to find an answer to the research question: How does the derivative taxation novelty (T2) in Germany impacts the profitability of derivative hedging strategy returns in the German financial market? For this study, a comparative, quasi-experimental research design was selected. ETF and warrant prices, a simple moving average (SMA), along with a beta hedging model, and a t-test were computed. The T(2) had an significant higher effect compared to T(1), with 4-17% and a t-test with t(170) = 2.5042, p < .000. The T(2) unfolded its full potential with an investment amount of €30K, while the share of T(2) was 2% per month of the investment amount when hedging with a SMA(50) and a warrant with a omega =20 ω (leverage) strategy. Conservative retail investors that followed a low risk short warrant strategy, needed to hedge large investment positions, had a frequent hedging requirement, which generated larger losses, were affected the most by T(2). I recommended to closer verify equality for sustainable investing. The study can be relevant for law-makers, financial advisors, banks, online brokers, retail traders, finance students to learn more about the effect of T(2) on their investments.