Professional Documents
Culture Documents
Dan Shy
aileronmarketbalance@gmail.com
IN THIS ISSUE:
Welcome!
We
What Needs Further Correction
now have been publishing Aileron Market Balance for twelve months. This issue will take a look at those twelve months of portfolio performance and specifically, what we have accomplished, what we have done right, and what needs further tweeking and correction. This summary does not contain year to date performance numbers for 2012, which differs from our November 2011 Inception to date performance numbers. This summary will be accompanied by an audio file which can be found here1.
Further
Correction
Very obviously, the portion that needs attention is my trading account. Since May of 2011, I've seen some heavy drawdown. And then after that drawdown, I've been stuck in this plateau where I haven't been able to pull ahead. To correct that, I have added further strength to one of the strong areas of my portfolio that was not involved in trading. Namely, Permanent Portfolio. Since April 23rd, I'm up 3.65% on my money. But the real key with Permanent Portfolio is that not that it is quick, or fast, or that it quickly corrects the trading account. But that it strengthens an already strong portion of the entire portfolio. It's Sharp Ratio is superb. As well to correct the drawdown in the trading account, I have begun income trading in this account. Now this form of trading takes time. But it's possible to take a 4% annual yield stock, to a 20% annual yield stock. For example, let's say you have a stock that is trading at $28, and gives you between a $0.30 and $0.35 dividend. Well, sell enough options around your position, and you can increase what you're pulling off of that stock. Last quarter, we were able to pull out $1.37 on such a $28 stock by selling options around the stock. This method is slower. This will slowly, more steadily add in more income into the account. We're in the midst of a bit of drawdown on the stock itself. And then, once we have some gains booked enough, we can risk 89 bps out of 600 bps on a commodity futures trade.
S&P 500 2011 Inception to Date: + 8.76 % Aileron Market Balance Total Portfolio 2011 Inception to Date: + 5.085 % Investing Account Balance: $4,165.92 4 Positions have been sold YTD for profit on each ... 0.71 % Yield redistributed to other accounts year to date Return / Yield up + 4.148 % since inception 8.081305 shares of STOCK ONE (DRIP off Current Yield is 4.50 % Yield on Cost is 4.38 % )
8 shares at $32.39 on 12/22/2011 w/ $5.01 Commissions 0.081305 shares DRIP at $34.93 on 3/23/2012 $2.86 in Cash on 6/22/2012 Sent $1.43 to Sav. Side-Pocket $2.86 in Cash on 9/21/2012 Kept entire amount in Account
6 shares of STOCK TWO (DRIP off Current Yield is 2.80 % - Yield on Cost is 3.11 % )
6 shares at $45.05 on 8/6/2012 w/ $5.00 Commissions $1.98 in Cash on 9/1/2012 Keeping full amount in Account
6 shares of STOCK THREE (DRIP off Current Yield is 2.52 % Yield on Cost is 2.54 % )
6 shares at $40.94 on 8/29/2012 w/ $5.00 Commissions $1.56 in cash on 10/26/2012
9 shares of STOCK FOUR (DRIP off Current Yield is 2.86 % Yield on Cost is 2.79 % )
9 shares at $27.41 on 9/6/2012 w/ $5.00 Commissions
8 shares of STOCK FIVE (DRIP off Current Yield is 4.58 % Yield on Cost is 4.49 % ) The portfolio summary is as follows ...
9 shares at $27.41 on 9/6/2012 w/ $5.00 Commissions
Total Trading Balance: $9,771.48 ( Return / Yield up + 8.572 % November 2011 Inception to Date ) Commodity Futures and Stock Balance: $9,701.72
Current Mark Included of Long 100 _____ at ____ Sold 1 ________ ______ Call at ______
Return / Yield up + 8.399 % Inception to Date Next Re-Distribution Goal: $10,700.00 Original 3% risk tolerance gives us approximately $282.54 for my drawdown tolerance ALREADY USED THIS YEAR $ 289.40 available from Slush Fund The account balance current includes the floating trade we have on with ___________ ... Futures and Stock 'Sister' Account November 2011 Inception to Date
$ 289.40 available from Slush Fund Dividend Investing Sister Inception to Date
CARRY TRADE POSTIONS _______ current mark at _______ _______ of _______ at _______ on _______ _______ of _______ at _______ on _______ _______ current mark at _______ _______ of _______ at _______ on _______ _______ current mark at _______ _______ of _______ at _______ on _______ _______ of _______ at _______ on _______ HEDGE _______ current mark at _______ _______ of _______ at _______ on _______
Micro-Forex Balance: $69.76 Currently in Phase 3 The totals for the Forex account do not include the unrealized gain / loss from the Carry Trades. It does count the interest earned from those trades. Return / Yield + 0.251 % in Phase 3 $ 289.40 available from Slush Fund
$505.14 for Emergency Savings Getting Paid Fund: $20.48 Total Portfolio Breakdown Return Graph
Total Portfolio Balance: $15,762.71 - Total AMB November 2011 Inception to Date Return: + 5.085 % S&P 500 2011 Inception to Date: + 8.76 %
safe trade well, and remember that loving other people doesn't cost a dime.
Note: The above statements should not be construed as an investment or trading recommendation. Aileron Market Balance is a newsletter that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to
change. Any trades or investments that I discuss within this newsletter are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this newsletter; as larger or smaller accounts may require a different strategy as the ones presented here. This newsletter simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 15 years of experience in trading and investing in these markets. The Model Portfolio accounts are hypothetical accounts, with all of the inherent problems therein, which are used within this newsletter in an attempt to track and benchmark the results of this newsletter, and is run for the education of other traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this newsletter are believed to be public domain. Any charts that are displayed using the ThinkorSwim platform, and other pictures were obtained through Wikipedia's public domain policy.