iBankCoin

Pervasive Trend: Morning Fades

People often ask me why I sell everything at the opening tick and here is why.

Look at the price action from 9 to 11am.

Some of the declines are extremely deleterious, ranging with 1% drops in a single hour.

Whilst it’s true, turning over an account 1,000% in a year isn’t exactly tax efficient, it’s also true that losing money isn’t either. These pervasive trends make it difficult to hold morning rips and because of this I will continue to fade the morning rips.

At any rate, I am 100% cash, +93bps for the session, now sitting with YTD gains in excess of 19%. Some people also ask me why I am showcasing pedestrian returns for the year and if you don’t know by now the answer is transparency. A 19% gain, regardless of what markets are doing, is a spectacular annual return to compound my account by. If you look at the Barclay’s hedge fund index, that’s up just 9.4% YTD, meaning the highest paid and most aggrandized PMs are barely up double digits. That is not to bedraggled them any more than already needed; but the point is to demonstrate a process I take and to show the good with the bad because that’s what trading is.

Bear in mind, this account was started at $100k in 2020 and this is where it is now, utilizing zero options or futures and with position sizes of 2 to 6%, many times in cash and often hedged to withstand the barrage of sell orders that comes every so often.

I’d tell you “if I could do it so could you” but that’s simply not the truth, as I am genetically superior to you and possess innate skills that permit me to function at a very high level.

GOOD DAY.

If you enjoy the content at iBankCoin, please follow us on Twitter