Condition is Stabilized

After a terrible, no good, very bad January things started to stabilize in February. Hedges started to show negative correlation again. Stocks are still stuck in the mud and volatility is very high. Hopefully after the Fed starts the rate hikes people will start feeling bullish again.

None of this matters. I'm just along for the ride. I observe the movements of the algorithm but I don't change anything. Right now my emotions tell me I should buy a bunch of oil and wheat because commodities are skyrocketing. I'd probably end up as a bag holder once sentiment flips and people start selling off. Like a Vulcan I choose to suppress my emotions and rely upon logic to guide me.

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Up and Down

March was up and down. Stocks made a strong rally, but bonds got killed. Implied volatility dropped dramatically, but realized volatility remains high. Meh.

Down Bad

Well, here's the first of my monthly updates. It's a doozy! After launching the algorithm in late October, things were pretty great for a while. I almost doubled my equity over the coarse of a few weeks. And then things turned south. Even though stocks did OK, bonds were a huge drag in December. And then stocks had one of the worst months ever. Right now I'm in a 70% drawdown and 40% below starting equity . Obviously not a great time, but it's not totally unexpected. January was one of the worst months ever for a stocks/bonds portfolio, so I'm just happy to still be alive! Hopefully things get turned around in time for the next monthly update!

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