Just to reiterate, this is not investment advice. I’m only sharing what I’m doing personally, which doesn’t mean you should invest or trade like I do. Please read the disclaimer below.
It looks like the drawdown that I’m currently experiencing may be nearing its end.
July was actually a very profitable month for trend trading in a number of commodity markets. The strategy that I trade and the markets that I trade experienced strong trends during the month. I’ve recovered about half of the account equity I lost during the worst part of my current drawdown.
When I ran a Monte Carlo analysis, I realized that based on 3 and a half years of backtested and real trades, I was very close to reaching my risk of ruin point. Fortunately, my account has recovered a bit and I’m still able to trade the strategy that I know that, over the long term, is profitable.
I’m excited to give you an update on my trading performance for the month of July. I’m still in the red for the year, but because I have some peace of mind, I’m not overly worried about it.