I don’t want to spend ages on this blog so hopefully I can stick to the key stuff and keep it short.
Talking of Shorts, I increased the Hedges I have via FTSE100 Spreadbets in recent days and you can see this on my ‘Trades’ page on WD1. I even placed my first Short on the Test System – I really hope we get a proper drop because it is essential that I try out how well the System Rules work to protect when we get a significant fall. We have designed the System to be infinitely scalable – but I don’t want to scale up much unless I have had the opportunity to test the System and Rules in a real-life big market sell-off. Ideally I will increase the scale from Jan 1st 2022.
0 Comments
I am extremely pleased to be able to report that last night (I started typing this on Saturday night) I went round the corner to spend the evening with some old friends and I ate a yummy pork burger, a pork banger and a chicken wanger. That is the first meat that has passed my lips for about 2 months and my goodness it was lush. I also knocked back at least 3 pints of booze and didn’t roll home (I was rather wobbly !!) until after 2am.
Even more sweetly, I actually feel fine today and the pain from my stomach is at a very low level and almost entirely gone. It is so nice to be able to say that my health is getting better without a doubt and I am hoping that the new box of lansoprazole tablets, that I should receive in the next few days, is the last lot I need to take. I know several people who take these pills as a daily thing but I am eager to get off them because despite not noticing any side effects, I generally have an aversion to shoving chemicals into me unless I have no other choice. Beer is a different matter obviously because that is a plant-based health product.
I finally managed to get an extra Spreadbet Account with igIndex and I started the Test System for my Index Spreadbets some days ago (incredibly, I still haven’t heard a peep out of CityIndex !!). Anyway, a couple of nights ago I looked at how far the FTSE100 dropped in March 2020 and worked out it was 36% at the worst level of Drawdown. You can see details of the Test System on my ‘Trades’ page on WD1.
It struck me I need to design my Rules and my System so that it can cope with a 36% Drawdown in its stride (although in practice, a 36% Drawdown would be extremely rare) and then it also hit me that really I should design for 50% Drawdown which I think some small Rule Changes will ‘easily’ manage and be mostly mechanical and just need a small degree of Hedging and the timing of those could be quite sloppy and not hurt Returns too much. |
Stocks & Markets WheelieBlogsThese tend to be more Markets and Stocks related and timely - the Blog Page on the Main WheelieDealer Website has the 'Educational' stuff (well that's the theory anyway !!). Archives
October 2021
Categories
All
|