March confronted us with a slump on the stock exchanges, which in 2008, 2001 and 1987 overshadowed the sharpness of the big crash in 1929. But again we were slightly better than the market and can be somewhat proud of the result, as many hedge funds went bankrupt.
Real money account March performance
We started March with an account balance of $117,299.14 and stood at $108,160.12 on March 31, 2020, which corresponds to a percentage loss of 7.8% (9.52%). At first glance, the percentage appears to be wrong but is to be justified by withdrawals, which we have included again for better comparability.
- Short calls on coffee (KC) at $ 933.80
- Short strangle on soybeans (ZS) at – $1,319.80
If we add all the trades together, there is a realized loss of $386.00.
The activity in our account was extremely low, partly because of the unclear market situation and partly because we no longer want to open any new positions in this account. The background to this procedure is the creation of a new account.
March performance in comparison
The following picture shows when we compare our real money account with the known benchmarks:
Due to the lack of positions in commodities, our account is heavily influenced by stocks. This is reflected in a very similar movement of the equity curve compared to the known indices.
Since the start of the account, we have still been slightly up, which can be described as a small success in such a historic event that we are experiencing these days. All other indices are negative for the same period, even though we have seen a strong bull market.
Current positions in our real money account
We currently have these positions open:
Screenshot from 1.4.2020 at 9:45 a.m.
We currently have hardly any positions open in our real money account and more or less manage the remaining balance until the new account can be launched.
The position in the VXX is developing much slower than expected, but we will stick to it because the VXX will only be able to move in one direction in the long term. For this reason, we have deliberately violated one of our money management rules.
As far as the current stock positions are concerned, we will also sell some stocks there and replace them with new, more attractive stocks with more substance.
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