This is getting repetitive but in a good way! Another month, another positive return. For May, my ETF momentum strategy produced a return of 1. My Gain to Pain Ratio is 2.
Volatility will return at some point and I will reduce leverage as required. I just started a subscription to Real Vision TV and began with the Peter Brandt series of videos. Peter Brandt who considers the Sharpe Ratio to be worthless for evaluating trading performance trading, among a small number of other metrics, the Gain to Pain Ratio which was fund by Jack Schwager. The Gain to Pain Ratio is calculated by dividing the sum of monthly portfolio gains by the absolute value of monthly portfolio losses.
There is one proviso about the Ratio that Jack Schwager points out which we should all be aware of. You can read about that here. Since my early twenties, I have been a DIY investor as I find investing to be such a thought provoking field. For the most part, I have been a rules-based investor choosing systematic trading which is typical of an engineer. Throughout the years, I have always sought ways to improve my investing.
In my home office, perhaps just like yours, are a number of investing books. I have many fund the classics but most are about systematic trading. While driving, I listen to a variety of audio podcasts but the bias is definitely tilted towards investing and finance. There is education to be had through books and podcasts but, for me, there is something else that has been formative in leading to the investing style that I now engage in and am very comfortable with.
The most important step for me has been publishing the results of my trading system here on this site. Publishing your trading performance will greatly assist you in dealing with the emotions of being an investor. Poor performance is instructive in that it may teach you that your trading strategy is need of a tune up. A volatile equity curve may be just what you need to tweak your trading system such that it matches your personality been there, done that.
C2 was designed for futures traders more so than equity traders but it is the best I have found. If you are a DIY investor and are not already publishing your results, my suggestion would be to start a blog and publish your trading performance monthly.
If my experience is any indicator, over time seeing your equity curve will likely lead you down a path of finding ways to improve your trading performance and match your trading style systematic your personality. Despite the widespread concern that the Systematic. The strong first four months of for my strategy fund pushed the CAGR up to 8. With a system that requires only about two hours of my time per month, I will gladly take that return in a world of low rates.
I am about to start an email list for this site and am working on an eBook. The eBook is for trading of you who want to construct your own ETF momentum trading system. I will outline the steps you need to take to systematic and then execute your very own, personalized system.
I listen to a lot of investing podcasts and thought I would share some insights from recent episodes. As a matter of fact, I expect to see a continuation of this especially of financial firms reducing their head count. AI is progressing very rapidly and if your job involves sitting at a desk and performing repetitive tasks, you should ask yourself if you can be replaced by software and what you are doing to prepare for the eventuality.
Former global macro fund manager Raoul Pal Raoul GMI has been in a number of podcasts that I listen to lately. On The Meb Faber ShowRaoul discussed his belief that there is a high probability of a recession in the US very soon based on his research of recessions in the past years. He recently spent time looking at US recessions in general. What he found was that every single one in the last one-hundred years occurred during or right after an election. I think you will be fascinated with this particular podcast.
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Measuring Your Trading Performance With The Gain to Pain Ratio by Fred Penney on May 21, The Most Important Step To Becoming a Better DIY Investor by Fred Penney on May 16, Pure Momentum ETF Strategy Performance by Fred Penney on May 1, Investing Podcast Insights by Fred Penney on April 9, Search The Systematic Trader. Connect with me RSS Tweet with me.