2014 Trade Alert Review
When is the Mad Hedge Fund Trader a genius, and when is he a complete moron?
That is the question readers have to ask themselves whenever their smart phones ping, and a new Trade Alert appears on their screens.
I have to confess that I wonder myself sometimes.
So I thought I would run my 2014 numbers to find out when I was a hero, and when I was a goat.
The good news is that I was a hero most of the time, and a goat only occasionally. Here is the cumulative profit and loss for the 75 Trade Alerts that I closed during calendar 2014, listed by asset class.
Profit by Asset Class
Foreign Exchange 15.12%
Equities 12.52%
Fixed Income 7.28%
Energy 1.4%
Volatility -1.68%
Total 37.64%
Foreign exchange trading was my big winner for 2014, accounting for nearly half of my profits. My most successful trade of the year was in my short position in the Euro (FXE), (EUO).
I piled on a double position at the end of July, just as it became apparent that the beleaguered European currency was about to break out of a multi month sideway move into a pronounced new downtrend.
I then kept rolling the strikes down every month. Those who bought the short Euro 2X ETF (EUO) made even more.
The fundamentals for the Euro were bad and steadily worsening. It helped that I was there for two months during the summer and could clearly see how grotesquely overvalued the currency was. $20 for a cappuccino? Mama mia!
Nothing beats on the ground, first hand research.
Stocks generated another third of my profits last year and also accounted for my largest number of Trade Alerts.
I correctly identified technology and biotech as the lead sectors for the year, weaving in and out of Apple (AAPL) and Gilead Sciences (GILD) on many occasions. I also nailed the recovery of the US auto industry (GM), (F).
I safely stayed away from the energy sector until the very end of the year, when oil hit the $50 handle. I also prudently avoided commodities like the plague.
Unfortunately, I was wrong on the bond market for the entire year. That didn?t stop me from making money on the short side on price spikes, with fixed income chipping a healthy 7.28% into the kitty.
It was only at the end of the year, when the prices accelerated their northward trend that they started to cost me money. My saving grace was that I kept positions small throughout, doubling up on a single occasion and then coming right back out.
My one trade in the energy sector for the year was on the short side, in natural gas (UNG), selling the simple molecule at the $5.50 level. With gas now plumbing the depths at $2.90, I should have followed up with more Trade Alerts. But hey, a 1.4% gain is better than a poke in the eye with a sharp stick.
In which asset class was I wrong every single time? Both of the volatility (VIX) trades I did in 2014 lost money, for a total of -1.68%. I got caught in one of many downdrafts that saw volatility hugging the floor for most of the year, giving it to me in the shorts with the (VXX).
All in all, it was a pretty good year.
What was my best trade of 2014? I made 2.75% with a short position in the S&P 500 in July, during one of the market?s periodic 5% corrections.
And my worst trade of 2014? I got hit with a 6.63% speeding ticket with a long position in the same index. But I lived to fight another day.
After a rocky start, 2015 promises to be another great year. That is, provided you ignore my advice on volatility.
Here is a complete list of every trade I closed last year, sorted by asset class, from best to worse.
|
Date |
Position |
Asset Class |
Long/short |
? |
? |
? |
? |
? |
? |
|
7/25/14 |
(SPY) 8/$202.50 - $202.50 put spread |
equities |
long |
? |
? |
? |
? |
? |
2.75% |
|
10/16/14 |
(GILD) 11/$80-$85 call spread |
equities |
long |
? |
? |
? |
? |
? |
2.57% |
|
5/19/14 |
(TLT) 7/$116-$119 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
2.48% |
|
4/4/14 |
(IWM) 8/$113 puts |
equities |
long |
? |
? |
? |
? |
? |
2.38% |
|
7/10/14 |
(AAPL) 8/$85-$90 call spread |
equities |
long |
? |
? |
? |
? |
? |
2.30% |
|
2/3/14 |
(TLT) 6/$106 puts |
equities |
long |
? |
? |
? |
? |
? |
2.27% |
|
9/19/14 |
(IWM) 11/$117-$120 put spread |
equities |
long |
? |
? |
? |
? |
? |
2.26% |
|
10/7/14 |
(FXE) 11/$127-$129 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
2.22% |
|
9/26/14 |
(IWM) 11/$116-$119 put spread |
equities |
long |
? |
? |
? |
? |
? |
2.21% |
|
4/17/14 |
(TLT) 5/$114-$117 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
2.10% |
|
8/7/14 |
(FXE) 9/$133-$135 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
2.07% |
|
10/2/14 |
(BAC) 11/$15-$16 call spread |
equities |
long |
? |
? |
? |
? |
? |
2.04% |
|
4/9/14 |
(SPY) 5/$191-$194 put spread |
equities |
long |
? |
? |
? |
? |
? |
2.02% |
|
10/15/14 |
(DAL) 11/$25-$27 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.89% |
|
9/25/14 |
(FXE) 11/$128-$130 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
1.86% |
|
6/6/14 |
(JPM) 7/$52.50-$55.00 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.81% |
|
4/4/14 |
(SPY) 5/$193-$196 put spread |
equities |
long |
? |
? |
? |
? |
? |
1.81% |
|
3/14/14 |
(TLT) 4/$111-$114 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
1.68% |
|
10/17/14 |
(AAPL) 11/$87.50-$92.50 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.56% |
|
10/15/14 |
(SPY) 11/$168-$173 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.51% |
|
7/3/14 |
(FXE) 8/$138 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
1.51% |
|
10/9/14 |
(FXE) 11/$128-$130 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
1.48% |
|
9/19/14 |
(FXE) 10/$128-$130 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
1.45% |
|
10/22/14 |
(SPY) 11/$179-$183 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.44% |
|
5/29/14 |
(TLT) 7/$118-$121 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
1.44% |
|
2/24/14 |
(UNG) 7/$26 puts |
energy |
long |
? |
? |
? |
? |
? |
1.40% |
|
2/24/14 |
(BAC) 3/$15-$16 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.39% |
|
6/23/14 |
(SPY) 7/$202 put spread |
equities |
long |
? |
? |
? |
? |
? |
1.37% |
|
9/29/14 |
(SPY) 10/$202-$205 Put spread |
equities |
long |
? |
? |
? |
? |
? |
1.29% |
|
5/20/14 |
(AAPL) 7/$540 $570 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.22% |
|
9/26/14 |
(SPY) 10/$202-$205 Put spread |
equities |
long |
? |
? |
? |
? |
? |
1.22% |
|
5/22/14 |
(GOOGL) 7/$480-$520 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.16% |
|
5/19/14 |
(FXY) 7/$98-$101 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
1.14% |
|
1/15/14 |
(T) 2/$35-$37 put spread |
equities |
long |
? |
? |
? |
? |
? |
1.08% |
|
3/3/14 |
(TLT) 3/$111-$114 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
1.07% |
|
1/28/14 |
(AAPL) 2/$460-$490 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.06% |
|
4/24/14 |
(SPY) 5/$192-$195 put spread |
equities |
long |
? |
? |
? |
? |
? |
1.05% |
|
6/6/14 |
(CAT) 7/$97.50-$100 call spread |
equities |
long |
? |
? |
? |
? |
? |
1.04% |
|
7/23/14 |
(FXE) 8/$134-$136 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
0.99% |
|
8/18/14 |
(FXE) 9/$133-$135 put spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
0.94% |
|
11/4/14 |
(BAC) 12/$15-$16 call spread |
equities |
long |
? |
? |
? |
? |
? |
0.88% |
|
4/9/14 |
(SPY) 6/$193-$196 put spread |
equities |
long |
? |
? |
? |
? |
? |
0.88% |
|
7/25/14 |
(SPY) 8/$202.50 -205 put spread |
equities |
long |
? |
? |
? |
? |
? |
0.88% |
|
6/6/14 |
(MSFT) 7/$38-$40 call spread |
equities |
long |
? |
? |
? |
? |
? |
0.87% |
|
10/23/14 |
(FXY) 11/$92-$95 puts spread |
foreign exchange |
long |
? |
? |
? |
? |
? |
0.86% |
|
7/23/14 |
(TLT) 8/$117-$120 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
0.81% |
|
3/5/14 |
(DAL) 4/$30-$32 Call spread |
equities |
long |
? |
? |
? |
? |
? |
0.76% |
|
4/10/14 |
(VXX) long volatility ETN |
equities |
long |
? |
? |
? |
? |
? |
0.76% |
|
1/30/14 |
(UNG) 7/$23 puts |
equities |
long |
? |
? |
? |
? |
? |
0.66% |
|
4/1/14 |
(FXY) 5/$96-$99 put spread |
foreign currency |
long |
? |
? |
? |
? |
? |
0.60% |
|
1/15/14 |
(TLT) 2/$108-$111 put spread |
equities |
long |
? |
? |
? |
? |
? |
0.47% |
|
3/6/14 |
(EBAY) 4/$52.50- $55 call spread |
equities |
long |
? |
? |
? |
? |
? |
0.24% |
|
10/14/14 |
(TBT) short Treasury Bond ETF |
fixed income |
long |
? |
? |
? |
? |
? |
0.22% |
|
3/28/14 |
(VXX) long volatility ETN |
equities |
long |
? |
? |
? |
? |
? |
0.20% |
|
7/17/14 |
(TBT) short Treasury Bond ETF |
fixed income |
long |
? |
? |
? |
? |
? |
0.08% |
|
3/26/14 |
(VXX) long volatility ETN |
equities |
long |
? |
? |
? |
? |
? |
0.06% |
|
7/8/14 |
(TLT) 8/$115-$118 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
-0.18% |
|
4/28/14 |
(SPY) 5/$189-$192 put spread |
equities |
long |
? |
? |
? |
? |
? |
-0.45% |
|
3/5/14 |
(GE) 4/$24-$25 call spread |
equities |
long |
? |
? |
? |
? |
? |
-0.73% |
|
4/28/14 |
(VXX) long volatility ETN |
volatility |
long |
? |
? |
? |
? |
? |
-0.81% |
|
4/24/14 |
(TLT) 5/$113-$116 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
-0.87% |
|
4/28/14 |
(VXX) long volatility ETN |
volatility |
long |
? |
? |
? |
? |
? |
-0.87% |
|
6/6/14 |
(IBM) 7/$180-$185 call spread |
equities |
long |
? |
? |
? |
? |
? |
-1.27% |
|
9/30/14 |
(SPY) 11/$185-$190 call spread |
equities |
long |
? |
? |
? |
? |
? |
-1.51% |
|
10/9/14 |
(TLT) 11/$122-$125 put spread |
fixed income |
long |
? |
? |
? |
? |
? |
-1.55% |
|
9/24/14 |
(TSLA) 11/$200 call spread |
equities |
long |
? |
? |
? |
? |
? |
-1.62% |
|
2/27/14 |
(SPY) 3/$189-$192 put spread |
equities |
long |
? |
? |
? |
? |
? |
-1.67% |
|
3/6/14 |
(BAC) 4/$16 calls |
equities |
long |
? |
? |
? |
? |
? |
-2.01% |
|
10/14/14 |
(SPY) 10/$180-$184 call spread |
equities |
short |
? |
? |
? |
? |
? |
-2.13% |
|
11/14/14 |
(BABA) 12/$100-$105 call spread |
equities |
short |
? |
? |
? |
? |
? |
-2.38% |
|
10/20/14 |
(SPY) 11/$197-$202 call spread |
equities |
short |
? |
? |
? |
? |
? |
-2.72% |
|
7/3/14 |
(GM) 8/$33-$35 call spread |
equities |
long |
? |
? |
? |
? |
? |
-2.91% |
|
3/7/14 |
(GM) 4/$34-$36 call spread |
equities |
long |
? |
? |
? |
? |
? |
-2.96% |
|
11/25/14 |
(SCTY) 12/47.50-$52.50 call spread |
equities |
long |
? |
? |
? |
? |
? |
-3.63% |
|
10/20/14 |
(SPY) 11/$197-$202 call spread |
equities |
short |
? |
? |
? |
? |
? |
-4.22% |
|
4/14/14 |
(SPY) 5/$188-$191 put spread |
equities |
long |
? |
? |
? |
? |
? |
-6.63% |
