8/19: SPY -$62,130.00 hedge $6,518.85 Net for this trade -$55,611.15 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$50,326.14
Going to start buying SSO when SPY gets to 105 or 100. I haven't decided which price level quite yet. I have to do some math this weekend. I'm going to use SSO because I don't have enough money left in my account to buy enough SPY without using margin, and I don't want to use margin. SSO is much cheaper and double weighted so it will be a good proxy for SPY, yet will cost me less for an equivalent position. The only sacrifice will be dividend.
8/22: SPY -$61,617.00 hedge $6,507.12 Net for this trade -$55,109.88 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) ------------------------ -$49,824.87 Barely any change from Friday.
8/23: SPY -$40,470.00 hedge $4,688.97 Net for this trade: -$35,781.03 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$30,496.02
I haven't closed anything out so I haven't taken any losses, much less "crushing" ones. In fact, while I'm currently drawn down about $40k, it's really only $30k because of my hedge, dividends, and previously closed hedge positions. When this trade gets closed, it will likely be in the low to mid 5 figure range of profit. Maybe you're confused by how I'm keeping track of everything. Let me break it down for you: SPY -$40,470.00 <--- this is the current drawdown of the open position hedge $4,688.97 <---- this is the current gain/loss of the open hedge Net for this trade: -$35,781.03 (unrealized) <--- this is the sum of the two above +$1,223.60 (realized) <--- this is locked in profits from part of the hedge I closed before +$2,931.69 (realized) <--- this is locked in profits from part of the hedge I closed before +$1,129.72 (dividend) <--- this is locked in profits from the SPY dividend I was paid ------------------------ -$30,496.02 <--- this is the current P/L of the open position. It is the sum of the SPY position + the hedge + all the locked in gains above. It is my current draw down on the position.
8/24 SPY -$31,122.00 hedge $3,938.25 Net for this trade -$27,183.75 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$21,898.74
Been very interested following your journal. I do have one question for you though how big of a drawndown can you face? What is the lowest ES print you can handle before you have to take the unrealized loss?
8/25: SPY -$41,382.00 hedge $4,735.89 Net for this trade -$36,646.11 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$31,361.10