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Week of March 4, 2024 - Weekly Performance by Strategy



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Notes

  • All results above are based on 1 unit position sizes. Each strategy page specifies what constitutes 1 unit.

  • Clients trading more than 1 unit of risk per trade (2x, 3x, etc.) realized the performance published above correspondingly to that amplified magnitude.

  • In many cases, the Risk Budget associated with each strategy represents the minimum starting account size of that strategy.


Summary

Equites sold off on Tuesday, only to rally back strong (again) into Friday jobs report. The initial reaction Friday to an inline NFP was somewhat bullish, mainly on the back of last month's numbers being revised down by quite a bit. Equites then, led by the NASDAQ 100 (QQQ) sold off harshly about 90 minutes into Friday's session and closed the day near lows.


Actually had three trades on here, two of which are for options that expire early next week. The one for the week had a very minor gain, as we looked to play the strength in Gold (GLD), but the move that really propelled the call side of the trade higher didn't come until several hours before the close on Friday.


Will see what our IWM and QQQ trades do early next week.


Was looking to play the bullish side of the market for the most part, but our hedges helped out quite a bit on Tuesday and Friday's rally (again, but mostly too late) did well for our MU and AMD calls. Seems things have been off by a day or so in terms of entry, but I expect to catch a few of these on the chin soon.


We have auto traded this strategy for 4 weeks now and while we are very slightly down (just over 1 unit/about $700), we have been measured in the overall exposure on at any given time. Generally trades have been somewhat front-loaded early in the week so we haven't initiated many new positions late in the week. Of course the late week signals 'would have' worked very well, but that's how trading goes sometimes.


Why do we say all of this? Well, I expect going forward that the strategy over time will AVERAGE 2-4 units gained per week (or 1-2k if risking 1 unit per trade of $500). Will there be down weeks? Certainly so, but this strategy has the potential for some astounding returns over the long haul.


Had some decent trades in here on QQQ, with most of the stock positions not doing a whole lot in terms of adding to the overall gains for the week. However, many times this will be the case and is why we position the aggregate of trades the way we do. While direction of the market still matters, since there is usually a bias of sorts, the net result is all we care about in the end.


Futures Flex

No trades.

Looking Ahead

CPI on Tuesday and to a lesser extent PPI on Thursday. That's the show for the week. With CPI, the market will likely look to interpret the outcome as it correlates to a rate cut for the late May FOMC meeting, as cut for the March meeting is pretty much off the table.

I mean they should just cut rates now because according to out President inflation is at 3% now. Anyway....











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