Annual income: 35% return. Here are my investment results for 2023.
In one of the posts, I was asked about using the described option strategies in real trading and the results. I’ve decided to create a separate post about it.
This is my real equity from Interactive Brokers account for 2023 year.
The S&P500 yielded a 20% return for the year. In comparison, my performance, at X1.75 of the index, may not impress many. However, the smoothness of the equity curve is crucial to me; my drawdowns for the year did not exceed 5%-6%. Thus, in terms of drawdowns, I have outperformed the index by almost twice. Regardless, in my opinion, these are strong results.
What are the main strategies I have used over the past year? There were 3 :
- Volatility arbitrage. See details in this post How to beat the market?
- Market Timing. Some ideas can be found here Investing and Market Timing.
- Investing in crypto assets. See Financial vehicles to get bitcoin exposure.
I believe in all these strategies. I’ll write a separate post on the second strategy soon. Currently, I can only say that 2024 will likely be a challenging year for stocks. The easiest way to protect yourself from a large drawdown is to buy a put option. Annual insurance on the S&P500 index now costs only 5%. I mean put LEAPS ATM option. It is currently cheap due to low volatility, while, conversely, the fund rate is high.
I’m curious how accurately I can catch a significant market reversal and demonstrate the reality of market timing.
Of course, this is not an investment recommendation.
