Total returns: November 2018 through January 2023
This post was updated on Jan 24, 2023.
Below are the trading statements in pdf format.
Total returns: November 2018 through January 2023 vs Benchmark SPY-TLT
Total returns: Strategy +137.5% vs Benchmark +29.4%
CAGR: Strategy +22.9% vs Benchmark +6.3%
CAGR inflation adjusted: Strategy +18.1% vs Benchmark +2.3%
Max. Drawdown: Strategy 24.2% vs Benchmark 28.7%
MAR ratio: Strategy 0.94 vs Benchmark 0.22
MAR ratio inflation-adjusted: Strategy 0.75 vs Benchmark 0.08
The Strategy outperforms the benchmark in terms of risk/return (MAR ratio) by 4.27 times or 9.37 times inflation-adjusted.
For the first 2 years I had very high transaction costs, overnight rates and borrow rates with my previous brokerage account: total impact was -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.
I spend no more than 30 minutes a week trading. Seriously.
I switched to another broker in early 2021. It took several months to transfer positions, so a significant portion of the profitability is not shown in the reports from IB, but in the reports from Exante for the same period. The PDF reports of both brokerage accounts are attached.
The investment approach worked great even in the first years, when I had very little experience. In addition, the costs of the first broker were much higher than those of IB, which was a major obstacle. Nevertheless, I was able to achieve a solid return of >20% per annum for that period.
Now I am absolutely sure that anyone with the right tools can make 20-25% per year in the long run, even without considering the big update of the strategy in 2023. The update will add us >10% additional annual profitability to the standard approach without increasing the risks at all. Details here.
I give a FREE introductory consultation, where I reveal the grail of our trading. Contact me here and we’ll schedule a convenient time for you.
This post will be updated as new results come in.
Have a great day and good luck with your trading!