Got stopped out the previous trade with -13 points. I should have brought the stop loss up to 1340 or breakeven when it was at 1348. Long 1320, SL is manual at this time...
Long 1306.5 manual stop loss, willing to hold longer. Yesterday's exit was pretty much on the top, perfect SMA bounce on the daily...
- 49.75 points as of yesterday. Looks like you are going to have to hold longer. If Thursday's LOD should break by more than a couple of ticks 1239ish is the next visible means of support. But then when your already down 50, what's another 15 - 20 among friends?
Time to update the Journal, because apparently some of the "investors" are nervous, although really, I don't see any reason... Let's recap where we were before I left a long position on: I was up 62 points (4.2%) with 14 trades. Since the fund has a 4% extra built in profit, I was up 8.2% when I let in a lazy and stupid way the market take it down. The max. DD was around -11.5%, thus the fund went about -3.4% in the red! The horror!!! Now I let the long position expire, the settlement price was 1279.25, thus trade 15th lost -27.25 points, which is not even 2%...I knew I can always count on the government and the fed... So where are we now? Up 34.75 points (2.3%) +4%= 6.3%. Where is the market now? -15% Thus my little fakefund is still comfortably in the green and beating the market by 21%... So if anybody is worried about the performance and wants to withdraw his fakemoney, you have to fill out the appropriate forms!!! P.S.: By the way please note that the lead over the market increased by 4%....
What a difference one month makes! Update: The SPX is down -32%, while I was sitting in cash, protecting my 6.3% gain YTD. So I am beating the market by 38%. I can't believe this Journal got one star only! By the way, the purpose of this exercise is to show how a small fund using the strategy described in the beginning can easily and handsomely outperform the market without doing much research or diversifying like crazy. Just be in a market index most of the time, and step aside when the market is falling. I know it sounds simple, but hey, I didn't do too many trades, did I? Maybe it is time to go long, to lock in that lead over the market...