July actually went pretty well, but an expensive mistake in a coffee trade costs us performance and makes us fall behind.
July performance in real money account
We started July with an account balance of $259,988.48 and stood at $231,461.89 on July 31st, a percentage loss of 10.97%.
While we still clearly outperformed in June, we had to give up all of our profits again in July.
Discipline costs us $30,000
All fundamental parameters spoke in favor of short in coffee and so we stuck to our coffee trade despite increasing losses. But coffee rose, rose, and rose. At some point we had to pull the rip cord and realize a huge loss. Of course, coffee fell clearly afterwards and you will also know this feeling. This is trading!
Here you can see a chart of coffee with the exit (Ausstieg), which we practically made at the top:
Winning trades
- Short Calendar Spread on VIX (VIX) with +$4,490.48
- Ratio Spread on SPX with +$94.08
- Ratio Spread on SPX with $234.08
- Calendar Spread on Lumber (LB) with +$20,338.40
Losing trades
- Short Calls on Coffee (KC) with -$34,003.44
We took losses of $8,632.97 in July. The coffee trade was very painful and shows us once again that it is immensely important to adhere to the rules. According to the rules, we should have closed the trade at the latest when we lost $8,000. So it’s $26,000 “extra” 😉
Performance since the start of the real money account
Since the start of the real money account, we have achieved an overall performance of 131%.
The small downturn at the end can only be attributed to the coffee trade. Still, it’s not a big drawdown and we can continue to look ahead with confidence.
For comparison, the development of the known benchmarks over the same period:
Current positions in our real money account
We currently have these positions open:
Screenshot 02.08.2021 9:00 a.m.
We will close the calendar spread in the VIX this week and our trade in lean hogs (HE) will also be closed soon. Otherwise, our speculative trade on Amazon is unfortunately a flop, but we had to take that into account.
Overview of past 3 monthly reports
Here you can find the individual reports of our real money account for the last 3 months:
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