The volatility seems to be leaking quickly out of the stock market, and it seems to be back to its pre-dominantly bull-mode, which has been going on for a while now. So time to go long and wait for the next opportunity for more trading?
At the beginning of October, this strategy went heavily into treasuries (TLT), to the tune of 70%. The rest was SPY. With all the turbulence in October, this proved to be a good setup – yielding about 2.3% for the month.
For November, the strategy allocations deviate a little bit from the original strategy (which implementation was posted originally on the Systematic Investor Blog).
Time to stay out of the market for a bit, at least according to my system. With all the developments of late – I don’t blame it.:)
The last long position was quite painful, basically I held it throughout the correction, and I flipped it today (systematically) still at a loss (although a minor one), despite the massive recovery of late. Now let’s see how the short fares.:)
About a year ago, I moved my trading predominantly to futures. It has been a rich and beneficial learning experience, so I decided to share it in this post.
Was busy at the beginning of September and didn’t post the updates for that month. However, the allocations were pretty close to August’s. The performance for September was pretty bad – a loss of 3%, which sent us at a negative 1% for the year.
It seems that a correction might be starting, and the strategy (both the original and my modified version) is acting accordingly, allocating 71% to TLT (treasuries) and the rest to SPY (S&P 500).
Was short for a single day, and the system said to flip to long at the close. The position got cancelled out (I am out of the S&P 500), since another system of mine wanted to go short the same instrument. Go figure it …
Time to stay out of the market for a bit. This last short position went ugly – lost about 1.7% on it.
Reversed my position, from long to short, on the S&P 500 at the today’s close. The long position was established on August 4th and was good for about 1.7% gain. There seem to be some uncertainty in the markets lately, so the short might turn out to be timely.