In this series of Q&A posts, I’ll post some of the comments and questions under my ads or articles, as well as the answers to them.

This one is from the end of December 2021.


Still underperformed the market this year. The market made over 100% in the last year and half, while you are up 130% in the last 3 years. Nothing to brag about.


1. My profit for 3.15 years is not 130% but 158% https://reallyeasytrade.com/trading-statistics-for-3-years/

2. My trading is market neutral, meaning a steady flow of profits from year to year. Whereas the S&P500 may not make any money for 10+ years and has a very low historical profit of 7% annually above inflation with monstrous drawdowns of 50%+.

3. You can’t compare returns for different time periods, the profit for 3.15 years should be compared with the profit for the same 3.15 years. 158% vs 77% SPY.

4. You can’t just compare absolute returns relative to each other; you need to compare profit (CAGR) / risk (MaxDD):

Continue reading “Q&A 1”

a green profit chart

Final return: +158.47% or +35.2% per year. Max drawdown: 23.4%

*This post was updated on Dec 25, 2021.

This is a combined statistic of my two brokerage accounts. This year I changed my broker Exante. Now I’m with IB. Below are trading statements in pdf format.

2019 – return +30.6% per year, max drawdown 12.6%.
2020 – return +28.1% per year, max drawdown 23.4%.
2021 – return +49.8% per year, max drawdown 6.5%.

**For the first 2 years I had very high transaction costs, overnight rates and borrow rates with my previous brokerage account: total impact is -7.5% per year vs -3% per year now. Had I used IB immediately, the return would have been about 4% per year higher in 2019 and 2020. Do not repeat my mistakes.

Continue reading “My trading statistics for the past 3 years”

In the previous article, we talked about the idea of the “miracle of lowest correlations” by including U.S. treasury bonds in the portfolio of defensive sectors. In this article, we address the fundamental reasons why U.S. treasury bonds work so well in conjunction with indexes and why corporate bonds are not a true alternative to them.


brief information about the dynamics of interest rates

When the economy is doing well and, as a result, securities indexes are also growing, the central bank raises the interest rate on issued loans to make more money. This causes a chain reaction of rising interest rates for all current issues of debt instruments, such as bonds or bank deposits. This means that earlier issues of debt instruments at a lower interest rate than now become less attractive and their prices fall.
When the economy is doing badly and as a result paper indexes fall, the central bank lowers the interest rate to prevent a wave of bankruptcies associated with the excessive debt burden of companies in crisis when they are unable to pay their debts at previous interest rates. This means that previous issues of debt instruments at a higher interest rate than now become more attractive and their prices rise.

Continue reading “Negative correlation in U.S. treasury bonds”