After July continued to be solid, the first days of August caught us off guard, as the markets went a bit crazy and volatility significantly increased. Many of our positions had to be closed after a very short period with a loss, and our hedge trades did not come to fruition, because the “crash” was too small and recovered quickly.
August performance in real money account
We started the month of August with a balance of $128,980.76 and stood at $118,675.46 on August 30, which represents a percentage loss of -7.99%. As you can see in the following chart, the first 3 trading days are responsible. 3 positions pulled us down sharply: Russell 2000, cotton and the gold-silver spread.
- Long Corning (GLW) $50.40
- Long Nvidia (NVDA) $116.40
- Long AMD (AMD) $68.00
- Short Calls on Cocoa (CC) $857.60
- Short Calls on Lean Hogs (HE) $908.80
- Complex Put Butterfly on the Russell 2000 (RUT) $1,369.20
- Simple Put Butterfly on the Russell 2000 (RUT) $1,350.80
- Short Calls on Cotton (CT) $544.40
- Complex Put Butterfly on the Russell 2000 (RUT) $1,027.40
- Long Wacker (WAC) €728.09
- Risk Reversal as a hedge in the S&P 500 (SPY) $2,084.40
- Simple Put Butterfly on the Russell 2000 (RUT) $2,272.80
- Simple Put Butterfly on the Russell 2000 (RUT) $2,306.80
- Long Calls as a hedge on VXX $2,818.00
- Simple Put Butterfly on the Russell 2000 (RUT) $1,511.80
If we sum up all realized trades, the result is a loss of $5,502.03. In summary, our hedge trades did not work out at all and took us into the red in August.
August performance in comparison
The following picture shows when we compare our real money account with the known benchmarks:
Current positions in our real money account
These positions are currently open:
Screenshot from 31.08. at 11:30
There is not much to say about the current positions because all problem positions have already been closed (hedge trades). Our gold-silver spread has been running hard against us in the meantime but has returned to its old path.
Overall, we have opened relatively few new positions in the last 4 weeks, partly because of the difficult market conditions and partly because of the equally hectic commodity markets.
Overview of recent 3 months reports
Here you can find the individual reports of our real money account of the last 3 months: