Crash mastered and all-time high in mind – Tradimo

Which trades brought success?

A very large proportion of the profits came from products that make volatility tradable in the markets. It is well known that volatility in the markets reached very extreme levels in March. This is also one of the causes of our drawdown. We already anticipated falling volatility in early March. As volatility continued to rise, our losses grew. We held on to our positions as luckily they werent too large to wipe out our account.

In the following picture you can see the development of the VXX:

To explain briefly: The VXX is an ETF that refers to the VIX, more precisely to the first two contracts in the VIX. The VXX falls when the VIX falls or runs in contango.

Since March 20, we have earned about $16,000 on our VXX trades and the trade is still ongoing.

But we also have other trades that deal with volatility. We have had 2 calendar spreads in the VIX open since May 14, which are already around $1,800 plus.

Other trades that have advanced our account since March 20 are 3 calendar spreads in the energy markets:

Assuming these 5 trades as the main factors in our recovery, we are talking about $26,000, which can be attributed to these 5 trades alone. The remaining $5,000 is spread across various trades in soy, coffee, oats, stocks, and several small option wins.

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Crash mastered and all-time high in mind - Tradimo

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