I figured it was about time to start sharing some of what may be an unorthodox lifestyle. I do a lot of traveling and a lot of trading. This blog will document my trades and at times my travels and the challenges therein.
Trading
I typically follow a non-directional trading style having mostly traded a few strategies
1. Modified Iron Condors (MIC)
2. Earnings related volatility trading
3. Fully hedged Anchor strategy for a long term portfolio
My focus and research/backtesting has been focused on how to maximize leverage in a safe/conservative way. I’ve determined that non-directional strategies tend to work best for this.
Modified Iron condor (MIC)
The MIC is a non-directional strategy where you sell both ends of the spectrum and buy insurance in the middle. Essentially, you’re a market insurance salesmen. The upside is usually the biggest problem with the MIC and the anchor likes up, so they tend to hedge each other. The EV trading loves volatitlity increases and helps on the down as does the standard adjustments you’d do in the MIC. Down and up are generally covered.
Recently, I’ve decided to further diversify and am doing somewhat equal parts of MIC, Pair trade credit spreads of TLT/SPY, LC 15M (momentum based trading style based on Meb Fabers research), Volatility trading and finally the Anchor strategy
1. MIC
2. TLT/SPY Pair trade
3. LC 15 M (Momentum)
4. Earnings volatility trades
5. Anchor Strategy
My belief is that this will end up in a very well rounded leverage based trading portfolio.
Are you still using the Anchor trade as downside protection for your ETF positions? Can you suggest any source where I can read up on this approach.
Regards